marketing
Sedra 
chapter9.pdf
L9 Developing New Products and Managing the Product Lifecycle
MKT 300: Principles of Marketing Management
New Product Development Process
Major Stages in New Product DevelopmentFIGURE | 9.1
Copyright © 2016 Pearson Education, Inc.
Product Ideas
D e
ve lo
p m
e n
t
New Product Development Process
Idea Screening
• Identify good ideas and drop poor ideas
• R-W-W screening framework: • Is it real?
• Can we win?
• Is it worth doing?
Copyri ght © 2016 Pe a rson Education, I nc.
New Product Development Process
Concept Development and Testing
Product idea is an idea for a possible product that the company can see itself offering to the market.
Product concept is a detailed version of the idea stated in meaningful consumer terms.
Product image is the way consumers perceive an actual or potential product.
Copyri ght © 2016 Pe a rson Education, I nc.
New Product Development Process
Product Development
Product development is developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
Copyri ght © 2016 Pe a rson Education, I nc.
New Product Development Process
Test Marketing Marketing Strategy Development
When test marketing is likely
• New product with large investment
• Uncertainty about product or marketing program
When test marketing is unlikely
• Simple line extension
• Copy of competitor product
• Low costs
• Management confidence
Copyri ght © 2016 Pe a rson Education, I nc.
New Product Development Process
Commercialization
Commercialization involves introducing a new product into the market.
• When to launch?
• Where to launch?
• Planned market rollout?
Copyri ght © 2016 Pe a rson Education, I nc.
Product Life-Cycle Strategies
FIGURE | 9.2
Product Life-Cycle Strategies
• Product development
• Zero sales and increasing investment costs
• Introduction
• Slow sales and nonexistent profits
• Growth • Rapid market acceptance and increasing profits
• Maturity
• Slow sales growth and profits level off or decline
• Decline
• Sales fall off and profits drop
Copyri ght © 2016 Pe a rson Education, I nc.
Product Life-Cycle Strategies
Copyri ght © 2016 Pe a rson Education, I nc.
Table 9.2 – Part 1
Product Life-Cycle Strategies
FIGURE | 9.3
Copyri ght © 2016 Pe a rson Education, I nc.
Product Life-Cycle Strategies
Copyri ght © 2016 Pe a rson Education, I nc.
Table 9.2 – Part 2
Additional Product and Service Considerations International Product and Service Marketing
• Determining what products and services to introduce in which countries
• Standardization versus customization
• Packaging and labeling
• Customs, values, laws
Copyri ght © 2016 Pe a rson Education, I nc.
