PRODUCT Flashcards
is
a process that involves the
conceptualization and creation of
innovative products that will catch the
attention of customers and ensure their
loyalty to a particular brand.
New Product Development
There are seven
stages in the
process of
developing new
products
Idea Generation
Idea Screening
Concept Development
and Testing
Market and Business
Planning
Product Development
Test Marketing
Commercialization or
Full Product Launch
In this first stage, the company searches
for and surveys new ideas to be used in
developing a product. This involves the
company’s sales and executive teams
which generates ideas based on market
trend research.
Idea Generation
This is the stage when the ideas
generated by the sales of the
company and science experts are
carefully studied.
Idea Screening
Once an idea for a new product is
selected, it is further developed as a
concept. It is assumed at this stage that
the product has at least a high chance of
succeeding in the market. The concept is
then expanded and tested with a group
of customers.
Concept Development and Testing
After the concept of the new product is
developed, the next step is to plan how it will be marketed. The target market is concretely
identified and characterized and the profit
objectives are planned. In addition, the other
components of the 4Ps are identified - the
price, placement, and
promotion of the product.
Finally, sales projections are made along with
the costs and profit estimates from the product
Market and Business Planning
At this stage, the concept is developed into a
product prototype. This stage involves the
efforts of both the marketing and research
departments of companies. It may take
months or years to create a product
prototype to ensure that it will pass both
technical and commercial standards.
Product Development
Once a product prototype is developed, its
marketability is tested with a particular group
of customers in a specific location. The
reactions of customers toward the product
are gathered and analyzed. This will help
address any problem concerning the
marketability of the product before it is
officially introduced to potential customers.
Test Marketing
After the product prototype has been
tested, the company or firm will make
its final decision on launching the
product. Commercialization can be a
soft launch or a full-scale launch.
Commercialization
the product will be tested with a
limited number of customers. Unlike test marketing,
however, it is only the marketability of the product
that is being tested also the usability and features of
the product. This often involves one or two
components of the 4Ps in the marketing mix.
soft launch
serves as the
official launching of the product. It involves the extensive utilization of the components of the 4Ps. The product is sold at its official price, and it is marketed heavily through various means, such as posters and advertisements on television and online platforms.
full-scale launch
is a group of similar products offered
by the same company under the same
brand. The products in a product line
may differ in sizes, variants, or flavors.
They may also differ in specific types
but are all under a general class
Product Line
It is the stage when the product is launched in
the market. Companies spend great amounts
of money to develop and introduce their
products to customers. Thus, marketers are
expected to find ways to launch products in
the best way possible without incurring large
costs.
Introduction
This is the stage when the product gains
acceptance in the market or for the firm or
company to start to increase. This is also the
point when a product may be sold under
different brands. These brands attempt to make
their own, distinct versions of the product being
sold. It becomes a challenge for marketers and
companies to maintain high sales and to ensure
Growth
At this stage, the product has been in the market
for a long period and competition has also
increased. With this, marketers face the
challenge of a possible decline in the sales of the
product. They, then, attempt to address this
challenge by improving the features of the
product or even cutting down its price.
Maturity
This is the stage when the profits and sales for
the product continue to decrease. Consumers
may begin to favor a new product which will
eventually prevail in the market. With this,
companies and firms may be left with no choice
but to ultimately drop the product to avoid
incurring huge costs and low profits
Decline
Services are considered a different type of
purchase. They involve contact between the
customer and an employee who provides the
service. Thus, it can be said that services are sold
differently compared to other types of products.
Firms must use strategies that consider the
satisfaction of both employees and customers
Marketing Strategies for Service Firms
Companies and firms must select
employees who will help them deliver
excellent services to their customers.
These employees must be trained and
oriented to meet the needs of
customers
Selecting and training employees
Training must be done in an
environment that inspires employees
and satisfies their needs. This will lead
to greater productivity and will
motivate employees to put more effort
into delivering services to customers
Associating effective customer service with employee motivation
When employees are satisfied, aware of
the
company’s
objectives,
and
knowledgeable about the needs of
customers, they will be able to provide
high-quality services. This will ultimately
lead to the satisfaction of customers
Delivering high-quality service
When customers are satisfied with a
service, they will recommend it to other
people. Eventually, the popularity of the
service will increase. As long as the
company and its employees maintain the
high quality of their service, they can
build a loyal customer base that will
Building a strong and loyal customer base
