1、1,Chapter 9,New-Product Development and Product Life-Cycle Strategies,2,Road Map: Previewing the Concepts,Explain how companies find and develop new-product ideas. List and define the steps in the new-product development process. Describe the stages of the product life cycle. Explain how marketing s
2、trategies change during the products life cycle.,3,Original Products,Product Improvements,Product Modifications,New Brands,Acquired Companies,Acquired Patents,Acquired Licenses,New-Product Development Strategy,4,Causes of New-Product Failures,One study estimated that as many as 80% of new consumer p
3、ackaged products fail. Only about 40% of new consumer products are around 5 years after introduction. Why? Overestimation of market size, Product design problems, Product incorrectly positioned, priced, or advertised, Product may have been pushed despite poor marketing research findings, Costs of pr
4、oduct development, or Competitive actions.,5,Improving New-Product Success,New-product success depends on having a: Unique superior product (one with higher quality, features, and value in use), and a Well-defined product concept (a defined target market, product requirements, and benefits).,To crea
5、te successful new products, the company must: understand its consumers, markets, and competitors, and develop products that deliver superior value to customers.,6,Major Stages in New-Product Development (Fig. 9-1),7,Customers,Competitors,Distributors,Suppliers,Systematic Search for New Product Ideas
6、 Obtained From Employees and Also From:,New Product Development Process New Product Development Process Step 1. Idea Generation,8,New Product Development Process Step 2. Idea Screening,Helps spot good ideas and drop poor ones as soon as possible. Many companies have systems for rating and screening
7、ideas which estimate:Market SizeProduct PriceDevelopment Time & CostsManufacturing CostsRate of Return Then, the idea is evaluated against a set of general company criteria.,9,1. Develop New Product Ideas into Alternative Detailed Product Concepts,2. Concept Testing - Test the New-Product Concepts w
8、ith Groups of Target Customers,3. Choose the One That Has the Strongest Appeal to Target Customers,New Product Development Process Step 3. Concept Development,10,DaimlerChryslers Electric Car,The companys task is to develop its fuel-cell powered electric car into alternative product concepts, find o
9、ut how attractive each is to customers, and choose the best one.,11,New Product Development Process Step 4. Marketing Strategy,Part One Describes Overall: Target Market Planned Product Positioning Sales, Market Share, & Profit Goals,Part Two Describes First-Year: Products Planned Price Distribution
10、Marketing Budget,Part Three Describes Long-Run: Sales & Profit Goals Marketing Mix Strategy,12,If No, Eliminate Product Concept,Business Analysis Review of Product Sales, Costs, and Profits Projections to See if They Satisfy Company Objectives,Step 5. Business Analysis Step 6. Product Development,13
11、,New Product Development Process Step 7. Test Marketing,Product and marketing program are introduced into more realistic market settings. Can be very expensive and time consuming.,Test the following: Positioning strategy, Advertising, Distribution, Pricing, Branding, Packaging, Budget levels.,14,Whe
12、n is the Right Time to Introduce Product?,Where to Launch a New Product?,Introducing the New Product into the Market,New Product Development Process Step 8. Commercialization,15,Form students into groups of three to five. Each group should read the opening vignette to the chapter about Microsoft and
13、 the software industry. Each group should then answer the following questions: Comment on Microsofts ability to bring new products to the marketplace. What lies ahead for Microsoft? What secrets has Microsoft learned?,Interactive Student Assignments,16,Speeding Up New-Product Development,17,Sales an
14、d Profits Over the Products Life From Inception to Demise,Product Life Cycle (Fig. 9-2),18,Applications of the Product Life Cycle,Product class which has the longest life cycles (i.e. gas-powered cars), Product form which tends to have the standard PLC shape (i.e. minivans), Brand which can change q
15、uickly because of changing competitive attacks and responses (i.e. Ford Taurus), Style which is a basic and distinctive mode of expression (formal clothing), Fashion which is a popular style in a given field (business casual), Fad which is a fashion that enters quickly, is adopted quickly, and decli
16、nes fast (pet rocks).,19,Problems Using the PLC,The PLC Concept can be applied by marketers for describing how products and markets work, but may also present some problems:,20,Summary of Characteristics, Objectives, & Strategies,Introduction Stage of the PLC,21,Summary of Characteristics, Objective
17、s, & Strategies,Growth Stage of the PLC,22,Summary of Characteristics, Objectives, & Strategies,Maturity Stage of the PLC,23,Maturity Stage of the PLC,Company tries to increase consumption of the current product,Changing characteristics such as quality, features, or styles to attract new users,Compa
18、ny tries to improve sales by changing one or more marketing mix elements,Modifiying the Market,Modifying the Product,Modifying the Marketing Mix,24,Summary of Characteristics, Objectives, & Strategies,Decline Stage of the PLC,25,Pick a soft drink, car, or food product, and trace the products life cy
19、cle. Project when the product might enter a decline stage and discuss strategies to reverse the decline.,Discussion Question,26,Rest Stop: Reviewing the Concepts,Explain how companies find and develop new-product ideas. List and define the steps in the new-product development process. Describe the s
20、tages of the product life cycle. Explain how marketing strategies change during the products life cycle.,27,Chapter 10,Pricing Products: Pricing Considerations and Strategies,28,Road Map: Previewing the Concepts,Identify and explain the external and internal factors affecting a firms pricing decisio
21、ns. Contrast the three general approaches to setting prices. Describe the major strategies for pricing imitative and new products. Explain how companies find a set of prices that maximizes the profits from the total product mix. Discuss how companies adjust their prices to take into account differen
22、t types of customers and situations. Discuss the key issues related to initiating and responding to price changes.,29,Factors Affecting Price Decisions (Fig. 10-1),30,Marketing Objectives,Survival Low Prices Hoping to Increase Demand.,Current Profit Maximization Choose the Price that Produces the Ma
23、ximum Current Profit, Etc.,Market Share Leadership Low as Possible Prices to Become the Market Share Leader.,Product Quality Leadership High Prices to Cover HigherPerformance Quality and R&D.,Internal Factors Affecting Pricing Decisions: Marketing Objectives,31,Four Seasons Hotel,Four Seasons uses t
24、he product quality leadership strategy. It starts with very high quality service, then charges a price to match. http:/,32,Value in Terms of Benefits Received for the Price Paid.,Customers Seek Products that Give Them the Best,Internal Factors Affecting Pricing Decisions: Marketing Mix Strategy,33,T
25、ypes of Cost Factors that Affect Pricing Decisions,Total Costs Sum of the Fixed and Variable Costs for Any Given Level of Production,34,Market and Demand,Competitors Costs, Prices, and Offers,Other External Factors Economic Conditions Reseller Reactions Government Actions Social Concerns,External Fa
26、ctors Affecting Pricing Decisions,35,Pure Competition Many Buyers and Sellers Who Have Little Effect on the Price,Monopolistic Competition Many Buyers and Sellers Who Trade Over a Range of Prices,Pricing in Different Types of Markets,Market and Demand Factors Affecting Pricing Decisions,Oligopolisti
27、c Competition Few Sellers Who Are Sensitive to Each Others Pricing/ Marketing Strategies,Pure Monopoly Single Seller,36,Demand Curve (Fig. 10-2),37,Price Elasticity of Demand,Price,Quantity Demanded per Period,A. Inelastic Demand - Demand Hardly Changes With a Small Change in Price.,P2,P1,Q1,Q2,Pric
28、e,Quantity Demanded per Period,P2,P1,Q1,Q2,B. Elastic Demand - Demand Changes Greatly With a Small Change in Price.,38,Major Considerations in Setting Price (Fig. 10-3),39,Cost-Based Pricing,40,Breakeven Analysis or Target Profit Pricing (Fig. 10-4),Total Revenue,Total Cost,Fixed Cost,Target Profit
29、($2 million),Sales Volume in Units (thousands),Cost in Dollars (millions),Tries to Determine the Price at Which a Firm Will Break Even or Make a Certain Target Profit.,41,Cost-Based Versus Value-Based Pricing (Fig. 10-5),42,After examining Figure 10-5, compare and contrast cost-based pricing and val
30、ue-based pricing. What are situations that favor each pricing method?,Discussion Question,43,Competition-Based Pricing,44,New-Product Pricing Strategies,Market-Skimming Setting a High Price for a New Product to “Skim” Maximum Revenues from the Target Market. Results in Fewer, But More Profitable Sal
31、es. I.e. Intel,Use Under These Conditions: Products Quality and Image Must Support Its Higher Price. Costs Cant be so High that They Cancel the Advantage of Charging More. Competitors Shouldnt be Able to Enter Market Easily and Undercut the High Price.,45,New-Product Pricing Strategies,Market Penetr
32、ation Setting a Low Price for a New Product in Order to “Penetrate” the Market Quickly and Deeply.Attract a Large Number of Buyers and Win a Larger Market Share.I.e. Dell,Use Under These Conditions: Market Must be Highly Price-Sensitive so a Low Price Produces More Market Growth. Production/Distribu
33、tion Costs Must Fall as Sales Volume Increases. Must Keep Out Competition & Maintain Its Low Price Position or Benefits May Only be Temporary.,46,Form students into groups of three to five. Which pricing strategy-market skimming or market penetration-does each of the following companies use? McDonal
34、ds, Sony (television and other home electronics), Bic Corporation (pens, lighters, shavers, and related products), and IBM (personal computers).,Interactive Student Assignments,47,Product Mix-Pricing Strategies: Product Line Pricing,Involves setting price steps between various products in a product
35、line based on: Cost differences between products, Customer evaluations of different features, and Competitors prices.,48,Product Mix-Pricing Strategies,Optional-Product Pricing optional or accessory products sold with the main product. i.e camera bag. Captive-Product Pricing products that must be us
36、ed with the main product. i.e. film.,49,Product Mix-Pricing Strategies,By-Product Pricing low-value by-products to get rid of them and make the main products price more competitive. I.e. sawdust, Zoo Doo,Product-Bundling Combining several products and offering the bundle at a reduced price. I.e. the
37、ater season tickets.,50,Discount and Allowance Pricing,51,Segmented Pricing,52,Psychological Pricing,Considers the psychology of prices and not simply the economics. Customers use price less when they can judge quality of a product. Price becomes an important quality signal when customers cant judge
38、 quality; price is used to say something about a product.,Retail $100.00 Cost $3.00,53,Promotional Pricing,54,Pricing products for customers located in different parts ofthe country or world.i.e. FOB-Origin, Uniform-Delivered, Zone, Basing-Point, & Freight-Absorption.Adjusting prices for customersin
39、 different counties.Price Depends on Costs, Consumers, EconomicConditions, CompetitiveSituations, & Other Factors.,Geographical Pricing,International Pricing,Other Price Adjustment Strategies,55,Initiating Price Changes,56,Being Replaced by Newer Models,Current Models Are Not Selling Well,Company is
40、 in Financial Trouble,Quality Has Been Reduced,Price May Come Down Further,Price Cuts Are Seen by Buyers As:,Reactions to Price Changes,57,Assessing/Responding to Competitors Price Changes (Fig. 10-6),58,Public Policy Issues in Pricing (Fig. 10-7),59,Rest Stop: Reviewing the Concepts,Identify and ex
41、plain the external and internal factors affecting a firms pricing decisions. Contrast the three general approaches to setting prices. Describe the major strategies for pricing imitative and new products. Explain how companies find a set of prices that maximizes the profits from the total product mix
42、. Discuss how companies adjust their prices to take into account different types of customers and situations. Discuss the key issues related to initiating and responding to price changes.,60,Chapter 11,Marketing Channels and Supply Chain Management,61,Road Map: Previewing the Concepts,Explain why co
43、mpanies use distribution channels and discuss the functions these channels perform. Discuss how channel members interact and how they organize to perform the work of the channel. Identify the major channel alternatives open to a company. Explain how companies select, motivate, and evaluate channel m
44、embers. Discuss the nature and importance of marketing logistics and supply chain management.,62,What is a Distribution Channel?,Set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.,63,Why are Ma
45、rketing Intermediaries Used?,The use of intermediaries results from their greater efficiency in making goods available to target markets. Offers the firm more than it can achieve on its own through the intermediaries: Contacts, Experience, Specialization, Scale of operation. Purpose: match supply fr
46、om producers to demand from consumers.,64,A Distributor Reduces the Number of Channel Transactions (Fig. 11-1),65,Contact,Financing,Information,Risk Taking,Promotion,Matching,Negotiation,Physical Distribution,These Functions Should be Assigned to the Channel Member Who Can Perform Them Most Efficien
47、tly and Effectively.,Distribution Channel Functions,66,List and briefly discuss the marketing channel functions that are involved in completing and fulfilling transactions. Which functions apply most in each of the following situations? A retailer puts in a rush re-order for a needed Christmas item
48、that is in short supply. An Internet marketer seeks ways to identify and contact its market.,Interactive Student Assignments,67,Number of Channel Levels (Fig. 11-2),68,Channel Behavior & Organization,The channel will be most effective when: each member is assigned tasks it can do best. all members c
49、ooperate to attain overall channel goals and satisfy the target market. When this doesnt happen, conflict occurs: Horizontal Conflict occurs among firms at the same level of the channel, i.e retailer to retailer. Vertical Conflict occurs between different levels of the same channel, i.e. wholesaler to retailer. Each channel members role must be specified and conflict must be managed.,69,Conventional Distribution Channel Vs. a Vertical Marketing System (Fig. 11-3),70,Corporate VMS Common Ownership at Different Levels of the Channel i.e. Sears,
