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Noida Institute of Engineering and Technology, Greater

Noida

New Product Strategy


Unit-2

Product and Brand Management


Ms.Priyanka Malhotra
(AMBA-MK0312)
Asst Prof.
MBA-3rd Sem Dept of MBA

Ms.Priyanka Malhotra AMBAMK0312 Unit-2


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Index/Content
S. No. Index
1.
Name of Subject with code, Course and Subject Teacher

2.
Brief Introduction of Faculty member with Photograph

3. Evaluation Scheme
4. Syllabus
5. Branch wise Application
6. Course Objective(s)
7. Course Outcome(s)
8. Program Outcomes (POs)
9. COs and POs Mapping

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Index/Content
S. No. Index
10. Program Specific Outcomes (PSOs)
11. Cos and PSOs Mapping
12. Program Educational Objectives (PEOs)
13. Result Analysis
14. End Semester Question paper Templates
15. Prequisite/Recap
16. Brief Introduction about the Subject with Videos
17. Unit Contents
18. Unit Objectives
19. Topic Objectives/Topic Outcome

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Index/Content
S. No. Index
20. Lecture related to topic
21. Daily Quiz
22. Weekly Assignment
23. Topic Links
24. MCQs
25. Glossary Questions
26. Old question papers
27. Expected Questions
28. Recap of unit

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Noida Institute of Engineering and Technology, Greater Noida

Dr. Priyanka Malhotra


Assistant Professor
Department: MBA
Email ID: priyankamalhotra@niet.co.in
Qualification: BBA, MBA, UGC NET, Ph.D
Specialisation: HRM & OB, Marketing
Total Teaching Experience: 15 years
Teaching Area: HR and Marketing

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Noida Institute of Engineering and Technology, Greater Noida

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Syllabus
UNIT-I
• Introduction to Product Management 08 Hours
Introduction to Product & Product Related Concepts: Product Management & Scope,
Define Product, Classification of Product, Product Levels, Product Hierarchy. 
Product Life Cycle: Product Life Cycle Stages and corresponding Strategies and Product
Evaluation.
Product Portfolio: Concept, Factors influencing Product Portfolio, The BCG Growth
Matrix, Shell’s Directional Policy Matrix
UNIT -2
• New Product Strategy 08 Hours
New Products: New Product Categories, Organization for Product Management,
prototyping, New Product Development Process, test marketing.
New product strategy: The need for Product Innovation Strategy, the components of
new Product Strategy Commercialization: Test Marketing, Time to Market, Breaking into
the Market, Managing Growth, Resistance to Change, Leveraging new Product Growth,
Sustaining Differentiation
Managing the mature Product: Offensive Strategies, Extending the product life cycle,
Customer Relationship Management.

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Syllabus
UNIT-3
•Introduction to Brand Management and Brand Equity 08 Hours
Branding Basics: Brand, branding and significance of branding, Branding challenges
and opportunities, Brand equity concept, Strategic brand management process,
Identifying and establishing brand positioning, Planning and implementing brand
marketing programs, Measuring and interpreting brand performance, growing and
sustaining brand equity.
Brand Equity concept and Brand Equity Models: Brand Asset Valuation, Aaker Model,
Brand Resonance.
UNIT-4
•Brand Positioning and Brand Marketing Programs 08 Hours
Brand knowledge, Customer-based Brand equity Sources of brand equity - Brand
Awareness, Brand Image, The Four steps of brand building, Creating customer value
Identifying and establishing brand positioning, Positioning guidelines.
Planning and Implementing Brand Marketing Programs: Choosing brand elements to
build brand equity, Options and tactics for Brand, Integrating marketing communication
to build brand equity, Conceptualizing the leveraging process, Co- branding, Celebrity
Endorsement.

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Syllabus

• UNIT-5
Measuring, Growing and Sustaining Brand Equity 08 Hours
The brand value chain, Designing brand tracking studies, Capturing
customer mind set through quantitative research techniques.
Brand architecture, Brand hierarchy, Designing brand strategy, Brand
extensions- advantage and disadvantage- Reinforcing brands,
Revitalizing brands, Brand Failures.

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Branch wise Applications

• It will help to identify the critical information needed to develop a


product and brand strategy that generates both quick-wins and
long-term value.
• It also reflects on the different types of product and brand
strategies that are undertaken by a business institution for
developing and enhancing the product’s presence in the target
market. 
• To create an activity plan to bring your brand strategy to life - both
externally towards consumers and internally to employees.
• Defining the right metrics for determining success in the
implementation product and brand strategy, considering any
adjustments that may need to be made under a test and learn
methodology.
• It will help to manage both products and brands to engage more
audience
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Course Objective

• The objective of this course is to learn fundamentals of Product and


Brand Management.
• The aim of Product Management Part is to make participants
understand competition at product level as well as brand level.
• The objective of Brand Management is to make students understand,
role of brands, components of brands, brand equity etc.
• The main aim for Brand Management is to make sure that students
understand the Brand Positioning and Brand marketing Programs.
• To provide insights into the conceptual framework for Strategic Brand
Management.
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Course Outcome

CO1 :Students will develop an understanding of Product and brand


management
 
CO2 :Students will develop an understanding of competition at Product Level
and Brand level
 
CO3 :Students will acquire the skill to Brand management and Brand equity.
 
CO4 :To enable learners to understand basics of brand equity, insights into the
conceptual framework for Strategic Brand Management.

CO5 :Understand the various aspects of Product Management and Product


Strategy, strategic significance of Product and Brand Management in
business.

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Programme Outcomes (POs)

PO1: Knowledge of Management theories and practices

PO2: Analytical & Critical thinking abilities

PO3: Value based leadership

PO4: Understand, analyze and communicate all aspects of business

PO5: Achievement of Organizational goals

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CO-PO Mapping

Mapping of course Outcomes and program Outcomes

S No CO/PO PO1 PO2 PO3 PO4 PO5


1 CO1 1 3 3
2 CO2 1 3 2 2 3
3 CO3 2 2 1
4 CO4 1 3 1 3 2
5 CO5 2 3 1 3 2
Average 1.4 2.8 0.8 2.4 1.4

High =3 ,Medium =2 ,Low =1

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Program Educational Objectives

PEO1: Conceptual Knowledge to adapt in rapidly changing


environment and learn new skills and demonstrate
application of management principles in professional work
setting.

PEO2: Apply appropriate tools for decision making for solving


complex managerial problems in local or global context.

PEO3: Exhibit Integrity, social responsibility and teamwork.

PEO4: Exhibit ethics, communication skills, leadership qualities


and entrepreneurial mindset.

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Result Analysis (Department Result, Subject Result
and Individual Faculty Result)

Total No. 90 &


Subject Name Pass 40>65 65>75 75>90 Average
Of Above Backlog
& Code % (%) (%) (%) Marks
Students (%)
Product &
Brand
98 100 11 17 66 04 0 77.06
Management
AMBAMK0312

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End Semester Question Paper Template

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End Semester Question Paper Template

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End Semester Question Paper Template

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Prerequisite and Recap

Pre requisite of the Unit


Having an understanding of concepts of Marketing and business
environment. Also having an understanding of Basics of Product and
Brand Management

Recap:
• Knowledge of product and concepts
• Product Life cycle

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Introduction to the subject

• Product Management is important to understand competition at


product level as well as brand level.
• Effective product management is a practical, purposeful and positive
approach of improving the company results, through the efforts of a
competent and committed team, coordinating manufacturing,
marketing and sales.
• Brand management is a function of marketing that uses techniques to
increase the perceived value of a product line or brand over time and
builds loyal customers through positive brand associations and images
or a strong awareness of the brand.
https://youtu.be/7j4WGVAsf4Y
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Unit Content

UNIT 2: CO2
1. New Products: New Product Categories
2. Organization for Product Management, prototyping
3. New Product Development Process, test marketing.
4. New product strategy: The need for Product Innovation
Strategy, the components of new Product Strategy
Commercialization
5. Time to Market, Breaking into the Market, Managing Growth,
Resistance to Change
6. Leveraging new Product Growth, Sustaining Differentiation
7. Managing the mature Product: Offensive Strategies, Extending
the product life cycle, Customer Relationship Management.

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Unit Objective

To help the students learn concepts of new products,


new product strategy and managing a mature product.

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Topic Objective /Topic Outcome

New Products

Topic 1:
 New Product
 New Product Categories

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What is a new product

• “By new product we mean original products, product improvements,


product modification and new brands that the firm develops through its
own research and development efforts”.

• “A new product is one which is really innovative which is significantly


different from existing and imitative products that are new to the
company.”According to William J. Stanton, M.J. Elzel and B.J. Walker

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New Product Categories

Booz, Allen and Hamilton have identified six


categories of new product in the terms of
their newness to the company and to the
market place.
i. New to the world   Eg phones, tabs etc.
Samsung Fold

ii. New product lines. Eg Samsung Flip

iii. Line extensions or Additions to the


existing product lines Eg Electric cars

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New Product Categories

Product improvements:  For example, cosmetics,


detergent products and food (diet, fat-free,
allergen-free products) industries.

Re-positioning:  Eg Tata Safari

Cost reductions

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Need of New Product Development

• Changing consumer
• Increasing competition
• Technological advancement
• New opportunities (growth and development)
• Risk diversification
• To increase company & brand reputation
• To utilise excess capacity (ONGC originally was an oil exploration
company; subsequently it went into refinery and now they have
entered into retail distribution and marketing of petroleum
products.)

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Daily Quiz

1. This is a group of closely related products. They are related through


technical, marketing, or user considerations.
• Product line.
• Product line depth.
• Product mix.
• Product item.
2. Are imitative products considered as new products?
• Yes
• No
3. Give one eg. Of line extension.
4. Give 2 reasons why a company introduces a new product in the market

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Topic Objective /Topic Outcome

New Products

Topic 2:
 Product Management
 Organization for Product
Management
 Prototyping

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Product Management

Product management is an organisational function within a


company dealing with new product development, business
justification, planning, verification, forecasting, pricing,
product launch, and marketing of a product or products at all
stages of the product lifecycle.

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Organisation for Product Management

• Product managers: Who are already handling existing


products. Drawback is that they are not able to give ample time
to new products as they are busy handling existing products.
• New Product managers: They professionalise the new product
function. Drawback is that they are limited to their product and
its line extensions.
• New Product committees: High level committees are charged
with reviewing and approving proposals.

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Organisation for Product Management

• New Product Departments: This special department is


headed by a manager who has substantial authority and
access to top management. Its major responsibilities include
generating and screening new ideas, working with the R&D
Deptt. & carrying out field testing and commercialisation.

• New Product Venture Teams: A group brought together


from various operating departments and charged with
development of a specific product or business. They are
“intrapreneurs” who are relieved from other duties, given a
time frame and budget and informal work settings to focus
on development of new products.
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Prototyping
A prototype is an early sample, model, or release of a product built to
test a concept or process. 
Features
• A product prototype is an example of a product you intend to
manufacture on a much larger scale.
• Compared to mass production, prototyping has a high cost per
individual unit and significantly lower if you get a bulk order of your
new product.
• A working prototype may differ from the final product, rapid
prototyping process may lead to a significant change in product
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Types of prototyping

• Low-fidelity prototyping: fast and cheap, often paper-based,


enables a quick preview of the product, and typically doesn’t allow
for proper testing by users.

• High-fidelity prototyping: realistically appearing and functioning as


similarly as possible to the actual product before launch, interactive
and providing meaningful feedback; Also, good for demonstration in
front of potential investors or stakeholders.

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New Product Development (NPD)

• According to Wheelwright and Clark (1992), NPD is defined as


effective activity organisation and management to bring products to
market with low development costs and short development times.

• Product Development & Management Association (PDMA) defines


NPD as,
“A disciplined and defined set of tasks and steps that describe the
normal means by which a company repetitively converts embryonic
ideas into saleable products or services.”

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Daily Quiz

1. _____________are those who are already handling existing


products.
2. What is product management?
3. An early sample, model, or release of a product built to test
a concept or process is called a ____________.
4. A realistic and functional prototype is called a ___________
prototype.
5. __________ is defined as effective activity organisation and
management to bring products to market with low
development costs and short development times.
6. Name the steps in NPD process.

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Topic Objective /Topic Outcome

New Products

Topic 3:
 New Product Development Process
 Test Marketing

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New product Development Process

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New product Development Process

https://youtu.be/7j4WGVAsf4Y

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New product Development Process
8 STAGES OF PRODUCT DEVELOPMENT PROCESS
• Idea Generation
Internal idea sources refer to the in-house research and development
teams of the company.
External sources refer to competitor innovations, the customer wants,
distributors and suppliers, and so on.

• Idea Screening
Errors in idea screening:
• Drop error
• Go error

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New product Development Process
•Concept Development and Testing

 
•Development of Marketing Strategy

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New product development process

• Business Analysis

• Product Development

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New product Development Process

•Test Marketing:  Test marketing is a marketing method that aims to


explore consumer response to a product or marketing campaign by
making it available on a limited basis before a wider release.

It provides an insight into how the product will be introduced into the
market, advertised, produced, packaged, distributed, and eventually sold
to the customers, and therefore any optimizations if required can be made
by the company. 

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New product Development Process
 Advantages of Test Marketing
•Gain an idea of how well the product will sell which allows the marketer
to build more realistic budgets, gain buy-in from other members of the
company, and make any changes needed.
•It helps you determine the most suitable and effective channels for
marketing.
•It helps you identify the best distribution channels and build a data-
driven distribution strategy for when the product launches.
Any weaknesses or flaws in your strategy will be exposed without any
disastrous consequences.

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Test Marketing
Disadvantages of Test Marketing
• Danger of the competition learning about the product and coming up
with a response before the full launch
• Test market may not be representative of the full target market,
leading to inappropriate decisions
• Delays in full launch may limit the revenue opportunity in markets
subject to rapid change
• Costly and time-consuming to administer.

Types of test markets


• Consumer goods Market testing
• Industrial goods Market testing

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Test Marketing

1. Consumer goods market testing


Trial —> Repeat —>Adoption —-> Purchase

• Sales-wave Research
Example: a free trial of new lipsticks, perfumes offered to the existing
customers, and feedback.

• Simulated Market test
The example is in departmental stores where new products are placed
and consumers’ behavior is tracked.

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Test Marketing

•Industrial Goods Test Marketing


All the goods that are produced for further use to make the final good
are considered industrial goods. 

They are divided into two major categories:


•Alpha Testing
•Beta testing

Other types of test marketing:

•Controlled Market test
•Test Markets

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Daily Quiz
• _____ is the development of original products, product improvements, product          modifications, and
new brands through the firm’s own R&D efforts.
a.   Idea generation
b.   Concept testing
c.   Test marketing
d.   New product development
•New-product development starts with _____.
a. Idea screening
b. Idea generation
c. Concept development and testing
d. Marketing strategy development
•What are the errors in idea screening?
•An attractive idea must be developed into a _____.
a.   product idea
b.   product concept
c.    product image
d.    test market

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Daily Quiz

•_____ calls for testing new-product concepts with groups of target


consumers.
a.  Concept development
b.  Concept testing
c.  Idea generation
d.  Idea screening
•  The marketing strategy statement in new product development
consists of three parts: _____, _____, and _____.
a.  idea generation; idea screening; concept development
b.  idea generation; concept development; concept testing
c.  idea generation; idea screening; idea management
d. target market description; planned product positioning; sales,
market share, and profit goals for the first few years.

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Daily Quiz

•  _____ is the stage of new-product development in which the


product and marketing program are tested in more realistic
market settings.
• Give two advantages of test marketing
• Give two disadvantages of test marketing
• How is test marketing done in consumer markets?

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Topic Objective /Topic Outcome

New product strategy

Topic 4:
 Commercialization
 The need for Product Innovation
Strategy
 The components of new Product
Strategy

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New Product Development Process

Commercialization: Based on the information gathered during the test


marketing process, if the business management gives a go-ahead, the
product is finally introduced into the market and this process is called
commercialization.
This stage often leads to massive costs in terms of initial
infrastructural investments as well as sales promotions and
advertisements. 

There are two ways of commercializing the products:


i. Roll out (phased, limited to specific geographic areas) and
ii. Mass marketing (whole market simultaneously)

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New Product Failure
• No product point-of-difference
• Limited retailer support
• Poor product design
• Established customer loyalty in the market
• Weak launch or poorly executed launch
• Adverse media attention
• Aggressive competitor actions
• Poor pricing or cost structure
• Weak supporting brand equity
• Small target market
• No clear market need or perceived product benefits
• Poor internal marketing
• Weak sales for size of company
• Insufficient time for success
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Product development strategy

Product development strategy is a subset of corporate strategy which sets


the direction for new products by establishing goals and through funding
decisions.
The aim of product development strategy is to gain competitive
advantage by placing product offerings in the best possible position to
drive business goals such as sales growth, revenue, and profits. 

New product development strategy is the means to:


• Mitigate risk in developing a product concept
• Improve the fit between products and markets
• Overhaul a product line
• Increase the sales of existing products by enhancing them

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Product development strategy

Eg. Apple’s product development strategy


Apple is an example of a platform/derivative strategy. They connect their
top level strategy to their product development process. The tech giant
tends to be product-driven. Apple creates products and then finds the
market for them later. Steve Jobs suggested that customers do not always
know what they want and believed that they will pay a premium for superb
products and Apple tends to focus on optimizing existing offerings. It relies
on brand loyalty and is happy to allow competitors to control the market in
lower-priced products that compete with Apple’s. 

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Product Innovation strategy

Meaning
A product innovation strategy is about creating winning products, which
means products that are in an attractive market, target a profitable
customer segment, address the right unmet needs, and help customers
get a job done better than any competing solution.

Need for product innovation strategy:


• Innovation strategies result in a clear focus.
• It helps you design a system to match your specific competitive needs.
• Also helps to trade-off decisions and choose all the elements of the
innovation system.
• It makes innovation measurable.
• It promotes innovation culture.

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Components of New Product strategy

Product vision

Product vision describes the long-term mission of your product.


These are typically written as concise, aspirational statements to
articulate what the company hopes the product will achieve. For this
reason, a product vision should remain static.

For example, Google’s early vision statement for its search engine
was, “Organize the world’s information and make it universally
accessible and useful.”

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Components of New Product strategy

Goals
A product vision should lead to high level strategic goals. These goals
will, in turn, influence what the team prioritizes on its product
roadmap.

Examples of product goals include:


• Increase free-trial downloads by 50% in the next 6 months
• Generate $3MM in revenue within 12 months

Using SMART goals is the best approach to utilize when setting goals for
your product strategy. Like product roadmaps, goals should be specific,
measurable, attainable, relevant, and time-bound.

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Components of New Product strategy

Initiatives
Initiatives are the strategic themes derived from your product goals
and then placed on your roadmap. They are significant, complex
objectives your team must break down into actionable tasks

Examples of product initiatives include:


• Improve customer satisfaction and Add customer delight
• Increase lifetime customer value
• Sell new services
• Break into new industries or geographical areas
• Sustain product features

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Components of New Product strategy

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Daily Quiz

• Define product development strategy.


• Define product innovation strategy.
• What is product vision. Give an example.
• Define SMART product goals.
• Give an example of product initiatives.

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Topic Objective /Topic Outcome

New product strategy

Topic 5:
 Time to Market
 Breaking into the Market
 Managing Growth
 Resistance to Change

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Breaking into new markets

Breaking into new markets means reaching an even wider


audience and developing more ways to earn revenue.

If the barriers are high (e.g., no significant capital investment, no


market leader to overcome, no patent or trade secret obstacles),
one's efforts must be more aggressive and one needs to break
into that market.

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Time To Market
Time to Market Concept
Time to market (also called TTM or time-to-market) is defined as the
period from the conception of a new idea until it is released to the
marketplace.
Time-to-market (TTM) refers to the time from which a company initially
conceives a product or service idea to the point when the actual
product or service is accessible to buyers in the market (Afonso et al.,
2008).

Types of time to market


The variations and types of time to market are as follows-
• Speed
• Flexibility to change
• Minimizing the use of resources
• Predictable schedules
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Time to market
Benefits of time to market 
• The benefits of time to market are as follows-
• Increasing profitability
• Garnering larger sales figures
• Speeding the time to market
• Improving the quality of the product
• Increasing productivity of a company
• Improving the communication level within the company
• Proficient managerial processes
• Higher share in the market
• Keeps you ahead in the game by dealing effectively with the
competitors

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Resistance to change

Change management is a discipline that guides organizational


improvement. It results in a permanent change as a result of
observable shifts in behavior.

Change management has three aspects: 


• Acknowledging the disadvantages of the current state
• Setting clear goals that lead to genuine improvement
• Creating structures that move the organization from its current to its
desired state

Change inside an organization is the result of three elements: processes,


platforms, and people.

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Resistance to change

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Resistance to change

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Resistance to change
Why is Change Management in Product Development Difficult ?

• Product development change initiatives are also hard to measure.


• Incremental measures made along the way are often unreliable.
• Product development also involves many functions working together.
Tinkering with one function often has unintended consequences for
another.
• Poor communication,
• Current corporate culture
• Poor commitment of management
• Lack of training
• Fear of the unknown.

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Daily Quiz

• Differentiate between time to market and breaking into


market.
• Why do product managers resist to bring a change? How can
it be overcome?

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Topic Objective /Topic Outcome

New product strategy

Topic 6:
 Leveraging new Product Growth
 Offensive strategy
 PLC extension strategies
 CRM

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Leveraging new product Growth
• If a company is experiencing a steady drop in sales and revenue due to
old-fashioned products or obsolete technology, it can take advantage
of product development tactics.

• Product-led growth is both a go-to-market strategy and a business


growth strategy.  It leverages the product as the primary vehicle to
acquire, activate and convert customers.

• It can be done through User-generated content, Leveraged distribution


channels and On-demand utility pricing for services.

Eg: Pinterest: It’s curated feed, personalised user on boarding, and


inherent virality make Pinterest a poster child for product-led growth

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Offensive Strategy

DEF.: When a business takes certain steps against the market leader to
get competitive in order to secure its market position.

Egs.: reduce the price to a great extent, creative and catchy design to
attract the attention, and a great marketing and advertising campaign.

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Offensive Strategy
Strickland and Thompson have divided the competitive edge time into
three categories;
• Build-up Period: If resources are readily available, then it’ll be short.
Otherwise, it would be longer.
• Benefit Period: is a time when a business enjoys the benefits of the
competition. It could be short or long depending upon your creative
offer.
• Erosion Period: is when the competitor has found a way to counter
your offer. It means the end of your competitive edge. 

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Offensive Strategy

How Does Offensive Strategy Works?


For instance, a publishing company makes some tech and distribution
changes.
An offensive strategy would require the company to diversify its
resources into attractive markets, investing more resources, and
acquiring a patent for distributing the technology.
On the other hand, the defensive strategy would require you to wait
for the right moment when the readership falls, and then applying
the popular and cheap technology.

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Offensive Strategy

Types of Offensive Strategies with Examples


• Flank Attack

Example:

LG attacked the other colored TV manufacturers in the rural market of


India. That’s how LG became the first brand in India to target the
rural market. LG found out that the village market isn’t only price-
conscious, but they’re also quality-conscious. They’re willing to pay
more for a product if it fixes their problems.

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Offensive Strategy

Types of Offensive Strategies with Examples


• Frontal Attack

Example:

Coca-Cola and Pepsi both are the market leader in the soft drink
beverage industry. They both have got capital and resource. They’ve
got a long history of frontal attacks. When Coca Cola launched diet
coke, then Pepsi offered diet Pepsi.

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Offensive Strategy
• Encirclement Attack
Example: E-commerce platforms usually follow the enrichment attack
and they attack all the strengths and weaknesses of the competitor
platform. They want to win the market share and beat the
competitor.

• Bypass Attack
Example: Samsung fold and flip to counter iphone and gain an
advantage.

• Guerrilla Marketing
Example: McDonald’s painted the zebra crossing lines as yellow to
symbolize French fries along with the brand image like a package. The
zebra lines or the French fries are coming out of the package.

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Offensive Strategy

What Makes Offensive Strategy Successful


• A successful offensive strategy must keep in mind the following steps;
• A company must achieve the product acceptance of customers in a
very short time. It should be new and reasonably innovative.
• You should reduce the competition by launching a counter offer.
• You must have all the required resources for the production of the
counteroffer.

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Offensive Strategy

What Makes Offensive Strategy Successful


• You should have a contingency plan in order to protect your position.
• If the benefit period doesn’t last long, it means that the competitors
may come up with a counteroffer at any time. They may copy your
innovative differentiating product. The offensive strategy would only
work if your business has strong resources and competencies.

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Extending the product life cycle

When a product reaches the decline stage, a business can act to extend its
life cycle. There are a number of extension strategies that they can use to
prevent their product from becoming obsolete.

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Extension strategies
Extension strategies:
• Change product–version 2.0 and then version 3.0.
• Change price– to allow new customers to buy it.
• Change place– sold in different countries or territories to gain more
sales.
• Change promotion– can prolong the life of the product, giving it a
new image.

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Extension strategies

Extension strategies:
• Change usage– For example breakfast cereals used advertising to
show consumers eating cereal at different times of the day.
• Change name– If a product has suffered from bad publicity and sales
are falling, a tried and tested technique is to simply change the name
of the product.

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CRM

According to Shani and Chalasani(1992), defines Customer Relationship


Management as“an integrated effort to identify, maintain and build up a
network with individual consumers and to continuously strengthen the
network for mutual benefit of both sides, through interactive,
individualized and value added contacts over a long period of time”

Customer relationship management (CRM) has the business purpose of


intelligently finding, marketing, selling to and servicing customers.

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CRM

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CRM
What will CRM strategy do for my business?
A good CRM strategy will help you:
• Provide an enjoyable customer experience at all touch points of the
customer journey
• Strengthen collaboration between sales, marketing, and customer
service teams
• Clearly and quickly identify the most worthwhile leads and
opportunities 
• Keep track of your leads and customers as they move through the buyer
funnel
• Carry out targeted marketing campaigns 
• Produce concrete figures and data insights to inform and guide your
future business strategies.
• Customer retention
• To cross sell products more effectively
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Daily Quiz

• How can you leverage new product growth?


• A _______ is when you attack the competitor face to face by
offering the same product, price, and quality.
• _____________ platforms usually follow the enrichment
attack.
• Dependency on other functions is one reason of _________
to change.
• Name 2 PLC extension strategies.
• Give one example of a PLC extension.
• _________ is an integrated effort to identify, maintain and
build up a network with individual consumers.

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Weekly Assignment

1. Explain Offensive strategy taking an example from the Service


industry.
2. Discuss the PLC extension strategies of Facebook.

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Topic links

https://www.youtube.com/watch?v=ebwo_BX_VtU
https://www.youtube.com/watch?v=Zb2cUBjPjtQ
https://strategyn.com/innovation-strategy/

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MCQs

1.            _____ is the development of original products, product


improvements, product          modifications, and new brands
through the firm’s own R&D efforts.
a.         Idea generation
b.         Concept testing
c.         Test marketing
d.         New product development
2. New-product development starts with _____.
a.      idea screening
b.      idea generation
c.      concept development and testing
d.      marketing strategy development
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MCQs

3. _____ entails testing new-product concepts with a target


group of consumers to find out if the concepts have strong
consumer appeal.
a.   Concept development
b.   Concept testing
c.    Idea generation
d.    Idea screening
4. Customer Relationship Management is about
a. acquiring the right customer
b. instituting the best processes
c. motivating employees
d. all of the above
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Glossary
Q. 1. Attempt all the parts: please pick the correct option from Glossary
(i) Prototype (ii) idea generation (iii) Business analysis (iv) Time to market
• ………………………… is defined as the period from the conception of a new idea until it is released to the
marketplace.
• ………………….. is an initial or early construction of the product concept, typically less formed than a “final” product
• The purpose of ……………………. is to create a large pool of ideas.
• …………….. involves the review of projected sales, costs and profits to find out whether they satisfy a company’s
objectives.
Q. 2. Attempt all the parts: please pick the correct option from Glossary
(i) Commercialization (ii) Product-led (iii) Concept Testing (iv) Beta Testing
• ………………… is the process by which a concept statement is presented to consumers for their reactions.
• ………………. is a pre-launch testing of a product with a group of people meant to represent typical users, done in
order to confirm and validate a product being ready for launch; much more of a “real world” type test
• Introducing the product to the market is called ………………….
• ………………… growth is a business strategy in which a company uses its product as the main tool to acquire
customers. 
Q. 3. Attempt all the parts: please pick the correct option from Glossary
(i) New to the world (ii) New Product Lines (iii) Repositionings (iv) Product Managers
• …………….. define the long-term strategic direction and product vision of their products.
• Inventions that create a whole new market are called as………………………… products.
• …………………. are products that are retargeted for a new use or application.
• Products that take a firm into a category new to it are ………………………………

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Glossary
Q. 4. Attempt all the parts: please pick the correct option from Glossary
(i)Vision (ii) Breaking into new markets (iii) Failure (iv) Product innovation
• The strategy that involves bringing winning product in the market is called ………………. strategy.
• ……………. Is a component of a product innovation strategy.
• ……………. means reaching an even wider audience and developing more ways to earn revenue.
• Fear of ……………….. is one reason why product managers resist change.
Q.5. Attempt all the parts: please pick the correct option from Glossary
(i) flank attack (ii) Encirclement attack (iii) frontal attack 
(iv) offensive strategy
• An …………….. is when a business takes certain steps against the market leader to get
competitive in order to secure its market position.
• A ……………. is when a challenging company attacks the blind and weak points of the
competitor.
• …………………… is when you attack the competitor based on its strengths and weaknesses and
don’t leave any margin of error.
• A …………….. is when you attack the competitor face to face by offering the same product,
price, and quality.

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Sessional Paper

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University paper Links

http://www.aktuonline.com/mba.html
• https://www.pooripadhai.com/previous-year-question-paper/universities/aktu/
mba/

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Expected Questions for University Exam
1. Define a new product.
2. Discuss the various categories of new products.
3. Explain the concept of innovation and its importance.
4. Differentiate between time to market and breaking into the market.
5. Explain the meaning of new product strategy and its components.
6. Discuss the concept of offensive strategies and explain its types.
7. Define CRM and give its importance.
8. How can the marketer extend the life cycle of a product? Discuss the
strategies.

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References

1) Managing Marketing, Noel Capon, SidharthShekar Singh, 4/e Wiley


2) Marketing: Lamb, Hair, McDanniel, Cengage Learning 2012.
3) Marketing Management - Ramaswamy V. S. &Namakumar S,
5/e, McGrawHill Education Publishers, 2015.
4) Marketing Management - Tapan Panda, 5/e, Excel Publication,2007

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Recap of Unit

• Concept of new Product and Innovation


• New product Strategy
• New product Development
• New Product Development Process
• Test Marketing
• Leveraging Product Growth
• Resistance to change
• Offensive Strategy
• Product extension Strategy

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THANK YOU

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