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to keep and grow existing customers by delivering satisfaction Market offering: Some combination of products, services, information or experiences offered to the market to satisfy a need or want. Marketing myopia: It is the Mistake of paying more attention to a specific product a company offers rather than to the benefits and experiences produced by these products. Concepts of marketing management Production concept: Customers favor products that are affordable and readily available to the customer Product Concept: Customers favor products that give most quality, performance and innovative features. This marketing strategy depends on product innovation Selling Concept: Customer will not buy the firms product unless the firm goes into large scale selling and promotion efforts. Marketing Concept: In this the organizations goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than their competitors. Societal marketing concept: It holds that marketing strategy should deliver value to customers in a way that maintains or improves both the customers and society’s well being.
Customer values: The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
First a product is born then goes through several phases and eventually dies as newer product come along that create greater values to customers.
New product development strategy:
A company can obtain new products in two ways. One is through acquisition- by buying a whole company, a patent, or a license to produce someone else’s product. The other is through the firm’s own new product development efforts. More than 90% of all new innovative products fail in the US, some reasons may be because they are poorly placed, highly priced wrongly designed or poorly advertised. New product development process
Idea Generation: Major sources or new ideas may be internal or external such as
customers, competitors, distributors and suppliers and others Internal idea sources: it may come from executives to r&d Scientists, engineers and manufacturing staff to salespeople and even top level management External ideas: It may come from distributors and suppliers as they are closer to the product and know the pulse and movement of the product in the market and the customers’ needs. Competitors are also a source a company buys the competitors product and analyze it to come up with something better than the competitors product. Online problem solving sites also play a big role as product innovation as some1 outside an organization today knows better to solve ur specific problems.
the purpose of idea generation is to create a number of ideas after this
these ideas are screened to reduce that number and find the best and apt idea from among the lot. Many companies ask for new product ideas in a specific format so that the products committee can review these fast or in an efficient manner. These write ups describe the proposed customer value proposition ,target market, the competition, some rough estimates of the market size, product price development costs, manufacturing costs and rate of returns. Then the committee reviews it with the help of R( Is it real or is there a real desire for such a product) W( can we win? Does it have a competitive edge) W( Is it worth doing? Will it help in the company’s growth)
Concept development and testing: A product idea is the idea for a possible product
that the company sees itself offering into the market. A product concept is a detailed version of the idea stated in meaningful customer terms. A product image is the way the customer perceives the actual product. Concept testing: It calls for testing new product concepts with groups of target customers and sees if it meets the requirement and needs of the customers and this can also be used to see how the market will take the product. This test may be a physical or word or picture description, a physical description may increase the reliability of the concept test.
Marketing Strategy development: Designing an initial marketing strategy for the new
product based on the product concept. They will first analyze the target market the value proposition , the sales and its profit goals according to the particular product.
Business Analysis: once the marketing strategy and product concept is decided it can
evaluate the business attractiveness of the proposal . It reviews the sales, costs and profit projection for the new product to find out if it satisfies the company’s objectives.
Product development: Here the engineering team develops the product concept into a
Test Marketing: in this the company tests it product in the market before fully fledged
production. Now days test marketing by consumer goods firms have decreased over the years.
When there is a big investment or when risks are high then the company tends to do a lot of test marketing before actual market release. Standard test markets: In this type of test marketing a small number of representative cities are used for the test and these data’s are used for predicting the countries overall sales. Controlled test markets: Several firms keep controlled panels of stores who have agreed to carry new products for a fee. These panels track individual customer behavior for new products as part if the test strategy. Simulated test markets: In this the company or the research firm shows advertisements and promotions of a variety of products including the new test product to a sample of customers and gives them a small amount of money which they may keep or buy a product inside the test environment. Thus they take note of how many customers buy the new product and the competitor’s product and conduct research.
Commercialization: Now after conducting these tests the product is launched into the
market after careful consideration of whether the product is a feasible one.
Managing new product development: Customer centered new product development: In this the successful new
product development begins with understanding of what the customer needs and values and finding new ways to solve these issues.
Team Based new product Development: In this in order to get their product
to the market many companies use a team based approach in which many depts Work as a cross functional teams to save time and increase efficiency to give out the new product faster into the market
Systematic New Product development: In this the company appoints a
senior person as the company’s innovation manager to get innovative ides to help in coming up with new products regularly
Product Life cycle Strategies:
It has five distinct stages
Product development: Here as we saw earlier the new ideas are developed and they
products are produced after careful consideration.
Introduction: In this the product is introduced into the market in the hope of selling
Growth: In this period there is rapid market acceptance of the product and profits are
increased. Maturity: In this period there is a slowdown in sales as a saturation is reached in the market and the profits may be used for more marketing due to several other
competitors in the market and so the profits start to decline. In this stage even though it takes a long time for goods products to go to the declining stage the companies should try to innovate their mature product so that it will sustain in the market longer Decline: In this the sales drop and the profits also drop. This may be due to technological advancements, shifts in customer tastes and increased competition. In this stage the company may decide to its brand without change in the hope that competitors may leave the field or reposition its brand in hopes of moving back to the growth stage. Or they may decide to harvest the product which means reducing the costs so that sales hold up. O r drop the product from the line
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