When you finish this chapter, you should: Understand how product life cycles affect strategic planning, know what is involved in designing new products and what new products really are, understand the new-product development process, see why product liability must be considered in screening new products.
Trang 1
Product
Management and
New-Product
Development
Trang 2The Product Life Cycle
Total Industry
Profit
+
–
$ 0
Market Introduction Growth Market Maturity Market Decline Sales
Total Industry
Sales
Tim e
Trang 3Introducing New
Products
Managing Mature
Products Future Adaptation
New Markets
Budget / Rate of Growth
Persuasion / Less Profit
New or Improve?
New Strategies
Focus:
Focus:
Focus:
Focus:
Planning for Life Cycle Stages
Trang 4New-Product Development Process
Idea
Generation
Ideas from:
Customers
and users
Marketing
research
Competitors
Other
markets
Company
people
Intermediaries
Screening
Strengths and weaknesses Fit with
objectives Market
trends Rough ROI estimate
Idea Evaluation
Concept testing Customer reactions Rough
estimates
of cost, sales, profits
Development
R & D Develop model or service prototype Test
marketing mix
Revise plans
as needed ROI estimate
Commercial -ization
Finalize product and marketing plan
Start production and
marketing
“Roll out” in select
markets Final ROI estimate
Trang 5Consumer
Welfare
Immediate Satisfaction
Desirable Products
Pleasing Products
Salutary Products
Deficient Products
High
Low
Types of New Product Opportunities
Trang 6Key Issues
Top Level Support
Market-Guided
R & D
Integration &
Authority
New-Product Development Management