week 10-11 New Product Development Flashcards
Draw NPD Process (ILLUSTRATION)
(9) box with arrow
when a promising concept has
been developed and tested, it is
time to design an initial
marketing strategy for the new
product.
MARKETING STRATEGY DEVELOPMENT
A description of the target market, the planned value proposition, and the sales, market share and profit goals for the first few years (3 years)
MARKETING STRATEGY STATEMENT
An outline of the product’s planned
price, distribution and marketing
budget for the first year
MARKETING STRATEGY STATEMENT
The planned long-term sales,
profit goals and the marketing mix
strategy
MARKETING STRATEGY STATEMENT
It’s essential to outline the product’s features and benefits while emphasizing significant
changes made from the approval stage to concept testing.
Product
This involves describing the
product thoroughly and explaining any alterations implemented based on feedback received during the approval process.
Product
Subsequently, insights gathered from concept testing are discussed, guiding the adoption of necessary adjustments for finalization.
Product
This iterative process ensures that
the product aligns closely with market needs and preferences, enhancing its potential for
success upon launch.
Product
______ is the amount that consumers will be willing to pay for a product.
Price
Marketers must link the price to the product’s real and perceived value, while also considering supply
costs, seasonal discounts, competitors’ prices, and retail markup.
Price
__________________ focuses
on the internal factors of a
business, primarily the
costs associated with producing
or acquiring the product.
Cost-based pricing
unit cost + mark-up price
equals=
Selling Price
Cost-based pricing
*As a rule of thumb, 5% is a ___ margin, 10% is a ______ margin, and 20% is a _____ margin.
- low
- healthy
- high
are expenses that do not vary with the level of production or sales within a certain range. These costs remain constant regardless of changes in output or sales revenue
Fixed cost
are expenses that vary in direct proportion to the level of production or sales. Unlike fixed costs, which remain constant, variable costs fluctuate based on changes in production volumes or sales revenue.
variable cost
Rent and Lease
fixed cost
Payments
FIXED COST
Salaries
FIXED COST
wages
FIXED COST
Insurance
FIXED COST
Premiums
FIXED COST
Loan Repayments
FIXED COST
Raw Materials
VARIABLE COST
Direct Labor
VARIABLE COST
Utilities
VARIABLE COST
Packaging
VARIABLE COST
Materials
VARIABLE COST
Sales
VARIABLE COST
Commissions
VARIABLE COST
- Understand Customer Value:
Market research reveals that customers value the unique
features of your product and are willing to pay a premium
for them.
Value-based pricing
- Determine Willingness to Pay:
After conducting surveys and analyzing competitors’ pricing,
you find that customers are willing to pay up to Php30 per
unit for your product.
Value-based pricing
- Set Pricing Strategy: Based on customers’ willingness to pay and the perceived
value of your product, you decide to set the selling price at
Php30 per unit.
Value-based pricing
focuses on the perceived
value of the product or
service to the customer.
Value-based pricing
is the consideration of where
the product should be available—in
brick-and-mortar stores and
online—and how it will be displayed.
place
The goal of promotion is to communicate to consumers that they need this product and
that it is priced appropriately.
PROMOTION
encompasses advertising, public relations, and the overall media strategy for introducing your product.
PROMOTION
