BEGIN WITH THE NAME

OF ALMIGHTY ALLAH.
MARKETING PRESENTATION

PREPARED BY…
•MUHAMMAD ESSA HASSAN
•SAQIB RASHEED
•KHURSHED SHOHAZ
•SHAHNAWAZ DAROO
New-Product Development &

Product Life-Cycle
Strategies
New Product Development Process

Concept Marketing
Idea Idea strategy
Development
generation screening development
& testing

Business Product Test

Commercialization
analysis development marketing
New Product Development Process
The systematic
search for new
product ideas.

Concept Marketing
Idea Idea
Development strategy
generation screening
& testing development

Business Product Test

Commercialization
analysis development marketing
New Product Development
Process
Screening new-product ideas in order to
spot good ideas and drop poor ones as
soon as possible.

Concept Marketing
Idea Idea
Development strategy
generation screening
& testing development

Business Product Test

Commercialization
analysis development marketing
New Product Development Process
Development an attractive idea into a product
concept which provides more detailed stated in
meaningful consumer terms. Then test new-
product concepts with a group of target
consumers to find out if the concepts have strong
consumer appeal.

Concept Marketing
Idea
Idea screening Development strategy
generation & testing development

Business Product Test

Commercialization
analysis development marketing
New Product Development Process
Designing an initial
marketing strategy for
a new product based
on the product
concept.

Concept Marketing
Idea Idea
Development strategy
generation screening
& testing development

Business Product Test

Commercialization
analysis development marketing
Marketing Strategy Statement

• Consists of 3 parts:
Target market
The planned value proposition
The sales, market share, and profit goals for the first
few years.
Marketing Strategy Statement
Example: Electrical car

• Product concept:
A “green” car appealing to an environmentally
conscious people who want practical, low
polluting transportation.
• Marketing strategy statement:
 The target market is younger, well-educated,
moderate-to high-income individuals, couples, or
small families seeking practical, environmentally
responsible transportation.

The car will be positioned as more fun to drive and

less polluting than today’s internal combustion
engine or hybrid cars.

The company will aim to sell 100,000 cars in the first

year, at loss of not more than $15 million. In second
year, the company will aim for sales of 120,000 cars
and a profit of $25 million.
New Product Development Process

Concept Marketing
Idea Idea
Development strategy
generation screening
& testing development

Business Product Test

Commercialization
analysis development marketing

A review of the sales, costs, and profit

projections for new product to find out
whether these factors satisfy the
company’s objectives.
New Product Development Process

Concept Marketing
Idea Idea
Development strategy
generation screening
& testing development

Business Product Test

Commercialization
analysis development marketing

Developing the product concept into a physical

product in order to ensure that the product idea
can be turn into a workable market offering.
New Product Development Process

Concept Marketing
Idea Idea
Development strategy
generation screening
& testing development

Business Product Test

Commercialization
analysis development marketing

The stage of new-product

development in which the
product and marketing
program are tested in realistic
market settings.
New Product Development Process

Concept Marketing
Idea Idea
Development strategy
generation screening
& testing development

Business Product Test

Commercialization
analysis development marketing

Introducing a new product

into the market
Product Life-Cycle Strategies
• The course of a product’s sales and
profits over its lifetime.

• It involves five distinct stages:

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline
Sales & Profits over the Product’s Life from
Inception to Decline

.
Stage 1

Product development:
• Begins when company finds and develops a new-product
idea.

• During this stage, sales are zero and the company’s

investment costs add up.
Stage 2
Introduction:
• Starts when the new product is first launched.

• Is a period of slow sales growth as the product

is introduced in the market.

• Profits are nonexistent or low in this stage

because of the heavy expenses of product
introduction.
Stage 3

Growth:
• Is a period of rapid market acceptance and increasing
profits.

• Product’s sales start climbing quickly.

Stage 4

Maturity:
• Is a period of slowdown in sales growth because the product
has achieved acceptance by most potential buyers.

• Profits level off or decline because of increased marketing

outlays to defend the product against competition.
 Stage 5

Decline:
• Is the period when sales fall off and profits drop.

• Sales decline for many reasons: technological

advances, shifts in consumer tastes, and increased
competition.
Stage 5

• A firm must regularly review product sales,

market shares, costs, and profit trends. Then,
management can decide whether to maintain,
harvest, or drop the declining products.
Summary of PLC Characteristics
Characteristics Introducti Growth Maturity Decline
on
Sales Low sales Rapidly rising Peak sales Declining sales
sales
Costs High cost Average cost Low cost per Low cost per
per per customer customer customers
customer
Profits Negative Rising profits High profits Declining profits
Customers Innovators Early Middle Laggards
adopters majority
Competitors Few Growing Stable Declining number
number number
begin to
decline
Summary of PLC Objectives

Introducti Growth Maturity Decline

on
Marketing Create Maximize Maximize Reduce
Objectives product market profit while expenditure
awareness share defending and milk the
and trial market brand
share
Summary of PLC Strategies
Strategies Introduction Growth Maturity Decline
Product Offer a basic Offer product Diversify brand Phase out weak
product extensions, and models items
service,
warranty
Price Use cost-plus Price to Price to match Cut price
penetrate or beat
market competitors
Distribution Build selective Build intensive Build more Go selective:
distribution distribution intensive phase out
distribution unprofitable
outlets
Advertising Build product Build awareness Stress brand Reduce to level
awareness and interest in differences and needed to retain
among early the mass market benefits hard-core loyals
adopters and
dealers
Sales promotion Use heavy sales Reduce to take Increase to Reduce to
promotion to advantage of encourage brand minimal level
entice trial heavy consumer switching
demand
 HAVE
A NICE DAY