Estrategia de Marketing

Chapter 9
Product
Management and
New-Product
Development
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.
At the end of this presentation,
you should be able to:
1. understand how product life cycles affect strategy
planning.
2. describe what is involved in designing new products
and what “new products” really are.
3. understand the new-product development process.
4. appreciate the team effort that goes into new-product
development.
5. understand the need for product or brand managers.
6. understand how total quality management can
improve goods and services.
7. understand important new terms.
The Role of Product Management and New-
Product Development in Marketing Strategy
(Exhibit 9-1)
Chapter 8:
Chapter 9: Product
Elements of
Management and
Product Planning
New-Product
for Goods and
Development
Services
The Product Life Cycle New-Product Managing Products

• Stages Development • Product managers
• Strategy planning for • 5-step process • Managing product
stages • Success factors quality
Typical Life Cycle of a New Product
Concept (Exhibit 9-2)
Market Introduction—
Investing in the Future
Informative
Low sales
promotion
Invest for
future
profits
Market Growth Stage—
Profits Go Up and Down
Innovation Attracts
Competition
Monopolistic
Competition Develops
Profits Peak and Then

Decline
Don’t Ignore Long-Term Competitive Trends!

© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. ©Shutterstock / DenisNata
Market Maturity Stage—
Sales Level Off, Profits Decline
Persuasive, More Costly
Promotion
Brands Are More Similar
Greater Price
Competition/Price
Sensitivity
Maturity May Last a Long

Time
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. ©Shutterstock / Tatyana Mi
Sales Decline—
A Time of Replacement
Price
New products competition
replace the old from dying
products
Conservative
buyers switch late
to new products
Checking Your Knowledge
While some of its competitors had stopped

producing movies in VHS cassette format, Disney
announced that it would still produce produce its
movies in VHS format. These companies'
decisions suggest that VHS movies are probably in
the _______ stage of the product life cycle.
A. market introduction
B. market growth
C. sales decline
D. market maturity
Product Life Cycles Don’t Relate to
Individual Products
Individual Market
Brands Definitions
• May not follow the • Should be
classic pattern carefully
• May be introduced developed
in market growth AND • Different markets,
or maturity different stages
• Not all brands are • Contribute to the
equally strong length of the cycle
Product Life Cycles Vary in Length
Comparative Easy to Use

Advantage
Products
that move
quickly through
early life
cycle stages Easy to
Compatibility
Communicate
Trialability
Other Issues in Product
Life Cycle Length
Product Life Cycles Are
Getting Shorter
Pioneer or Follower? Which

Strategy Works Best?
Fashions and Fads
Changes in Marketing Mix Across the
Product Life Cycle (Exhibit 9-3)
Market
Market Growth
Introduction
Variety, build brand
Product One or few
familiarity
Place Build channels, maybe selective distribution
Promotion Pioneering, informing Inform & persuade
Skimming or Meet competition or

Price penetration price dealing
Monopoly or Monopolistic
Competitive
monopolistic competition or
Situation competition oligopoly
Changes in Marketing Mix Across the
Product Life Cycle (Exhibit 9-3)
Market Maturity Sales Decline
Product Battle of the brands Some drop out
Place Move toward more intensive distribution
Build selective demand

Promotion Persuading and then reminding
Price Meeting competition or price cuts and deals
Competitive Monopolistic competition or oligopoly –

Situation heading toward pure competition
Managing Mature Products
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. Source: DuPont Textiles & Interiors’ LYCRA®
Phasing Out Dying Products
Phase-out May
Be Necessary
Don’t Pull the

Plug So Quickly
Product Line
Profitability Customer
Support Sales Decline
Can Be
Profitable
New Product Planning
What Is a New Product?
FTC Rule: 6 Months
Ethical Dilemmas Exist
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. ©Cultura / Image Source
#M4BW: Innovation Can Make
World A Better Place
New products
that innovate
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. (top): Source: Microsoft; (bottom): Source: E6PR
New-Product Development Process
(Exhibit 9-4)
1. Idea
generation
2. Screening
3. Idea
evaluation
4.Development
5.
Commercial-
ization
Step 1: Idea Generation
1. Idea
generation
2. Screening
3. Idea
evaluation
4.Development
5.
Commercial-
ization
Step 2: Screening
1. Idea
generation
2.
2. Screening
Screening
• Strengths and 3. Idea

weaknesses evaluation
• Fit with objectives
• Market trends 4.Development
• Rough ROI estimate
5.
Commercial-
ization
Step 3: Idea Evaluation
1. Idea
generation
2. Screening
3. Idea
evaluation
4.Development
5.
Commercial-
ization
Step 4: Development
1. Idea
generation
2. Screening
3. Idea
evaluation
4.Development
5.
Commercial-
ization
Step 5: Commercialization
1. Idea
generation
2. Screening
3. Idea
evaluation
4.Development
5.
Commercial-
ization
Top management of a large company recently approached the

dean of a major business school about starting a specialized
MBA program for the company’s employees. After further
discussions, the dean decided that the program did not fit well
with the objectives and resources of the school, so the program
was put on the “back burner” until conditions changed. The
proposed MBA program was at what stage of the new-product
development process when it was shelved?
A. Idea generation
B. Screening
C. Idea evaluation
D. Development
E. Commercialization
New Product Development: A Total
Company Effort (Exhibit 9-6)
Complete Effective
marketing transition to
plan regular operations
Organized new-
product A basis for
New-product
development superior
success
process customer value
Effective
design
New Product Development: A Total
Company Effort (Exhibit 9-6)
Clear
Top Cross-
understanding
management functional
of customer
support team
needs
Culture of Organized new-product

innovation development process
Cost
Product Timely
management
champion development
(costs add
with authority cycle value)
Which statement(s) about new-product

development is/are true?
A. The process should be informal to encourage
innovation.
B. The greatest number of product ideas is in the idea
evaluation stage.
C. The best criteria for evaluating new product ideas in
the early stages is return on investment (ROI).
D. The process should have top management support.
E. All the above statements are true.
Need for Product Managers
Product/Brand
Managers
Common in Large
Companies
Some Are “Product

Champions”
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. ©wavebreakmediamicro/123RF
Managing Product Quality
TQM
Meets customer
requirements
Data and Artificial Intelligence
Aid Quality Efforts
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. (left): Courtesy of Savioke; (right): Source: Woebot
Building Quality into Services
Server Is Linked
to the Service
Training Is Crucial
Empowerment Works
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. ©David McNew/Getty Images
Other Issues in Quality
Implementation Efforts
Empower People To
Serve
Specify Jobs and

Measure Performance
Get a Return on Quality
© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. ©Shutterstock / tkemot
Key Terms
1. product life cycle 12. Federal Trade Commission

2. market introduction (FTC)
3. market growth 13. patent
4. market maturity 14. Consumer Product Safety Act
5. sales decline 15. product liability
6. fashion 16. concept testing
7. fad 17. prototype

18. product managers
8. new product
19. brand managers
9. continuous innovations
20. total quality management (TQM)
10. dynamically continuous
innovations 21. continuous improvement
22. empowerment
11. discontinuous innovations

Estrategia de Marketing

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Estrategia de Marketing

Uploaded by

Copyright:

Available Formats

Chapter 9

The Product Life Cycle New-Product Managing Products

Profits Peak and Then

Don’t Ignore Long-Term Competitive Trends!

Brands Are More Similar

Maturity May Last a Long

While some of its competitors had stopped

Comparative Easy to Use

Pioneer or Follower? Which

Fashions and Fads

Place Build channels, maybe selective distribution

Promotion Pioneering, informing Inform & persuade

Skimming or Meet competition or

Product Battle of the brands Some drop out

Place Move toward more intensive distribution

Build selective demand

Price Meeting competition or price cuts and deals

Competitive Monopolistic competition or oligopoly –

Don’t Pull the

What Is a New Product?

FTC Rule: 6 Months

Ethical Dilemmas Exist

• Strengths and 3. Idea

Top management of a large company recently approached the

Culture of Organized new-product

Which statement(s) about new-product

Some Are “Product

Specify Jobs and

Get a Return on Quality

1. product life cycle 12. Federal Trade Commission

4. market maturity 14. Consumer Product Safety Act

5. sales decline 15. product liability

6. fashion 16. concept testing

7. fad 17. prototype

You might also like