Mark 201 Final Review

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MARK 201: Introduction to Marketing
Taught by: Chelsey Stuart-Duval
Concordia SOS:

concordiastudentsofferingsupport.com/ facebook.com/concordiaSOS twitter.com/concordiaSOS

This course is also offered Digitally!
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CHAPTER 10: New-Product Development and Product Life-Cycle Strategies

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New-Product Development
2 ways to get new products: 1. Acquisition: either a company, patent, license or product. Ex: Lancome buying L’Oreal 2. New Product Development: Original ideas, improved products, product modification, and new brands created in house. Ex: Coke made Coke Zero Vanilla Tuesday, 11 December, 12

New-Product Development
Major Stages

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New-Product Development
Biggest reasons for Failure:
Thinking the Market is bigger then it really is Poor Design Bad Positioning Wrong Timing Price too high Ineffective Promotion Management Influence High Development costs Competition 5
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New-Product Development Process
Idea Generation Internal: Looks at company’s own research and staff for ideas External: Looks at ideas outside the company like customers, suppliers, competitors, etc. 6
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New-Product Development Process
You need to identify the good products from the Bad. How? RWW Screening system: R: Is it Real? W: Can we Win? W: Is it Worth doing? 7
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New-Product Development Process
Concept and Development Testing Product Idea: A possible product the company can see itself offer a market Product Concept: Detailed version of the product in consumer terms Product Image: How the product will be perceived Product Testing: testing the product with groups of target Consumers. 8 Tuesday, 11 December, 12

New-Product Development Process
Marketing Strategy Development The initial strategy for introducing the product to Markets Description of target Market Value Proposition Sales Profit Goals Price Distribution Marketing Budget 9
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New-Product Development Process
Market Strategy Development Business Analysis: Looking at sales, costs, and profit projections to see if they satisfy company needs Product Development: Requires an increased investment as an actually product is created and tested by R&D or engineer departments 10 Tuesday, 11 December, 12

New-Product Development Process
Marketing Strategy Development Test Marketing Product and marketing program are put in a more realistic setting. This gives the Marketer experience to see if the product will be well received or not before launching. - Standard Test Markets (Chooses certain cities to try product in first) - Controlled test Markets (Certain stores carry the product and track consumer interest) - Simulated Test Markets (Less expensive and faster but considered unreliable) 11 Tuesday, 11 December, 12

New-Product Development Process
Marketing Strategy Development Commercialization Official introduction of product - When to launch - Where to launch - Planned market roll out

Ex: Movie Releases
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Managing New-Product Development
Successful New-Products are:
- Customer Centred: New ways to solve a problem - Team Centred: Company works together in cross-functional teams overlapping in the product. Very effective. - Systematic: Innovative development that collects new ideas from everyone involved in the company.

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Product Life Cycle Strategies
Product Life Stages

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Product Life Cycle

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Product Life Cycle Strategies
Market Modifying The aim to increase consumption of product while in maturity. Looks for new users or usages. Product Modifying: Changes characteristics (ie: quality, features, style, or packaging) Modifying the Marketing Mix: Offer new/ improved services, lower price, new marketing channels, or more aggressive campaign.) 16...
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