Kotler y Armstrong (Cap9)

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METODOLOGIA

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  • Copyright 1999 Prentice Hall

    9-19-1

    Captulo 9Captulo 9

    Estrategias de desarrollo denuevos productos y de ciclo

    de vida de los productos

    MarketingOctava edicin

    Philip Kotler y Gary Armstrong

  • Copyright 1999 Prentice Hall

    9-29-2Estrategias de desarrollode nuevos productosEstrategias de desarrollode nuevos productos

    Productosoriginales

    Productosoriginales

    Mejoras aproductos

    Mejoras aproductos

    Modificacionesde productos

    Modificacionesde productos

    Nuevasmarcas

    Nuevasmarcas

    Empresas adquiridas

    Empresas adquiridas

    Patentesadquiridas

    Patentesadquiridas

    Licenciasadquiridas

    Licenciasadquiridas

    Estrategias para obtener ideas de productos nuevos

  • Copyright 1999 Prentice Hall

    9-39-3Causas del fracaso de productos nuevosCausas del fracaso de productos nuevos

    Sobreestimar el tamao del mercado

    Problemas en el diseo de productos

    Producto con posicionamiento, precio o publicidadincorrectos

    Costos de desarrollo de productos

    Acciones competitivas

    Para crear productos nuevos que tengan xito, la empresa debe:

    entender a sus clientes, mercados y competidores

    desarrollar productos que proporcionen un valor superior a los clientes.

  • Copyright 1999 Prentice Hall

    9-49-4Proceso de desarrollo denuevos productosProceso de desarrollo denuevos productos

    Generacinde ideas

    Depuracinde ideas

    Desarrolloy pruebade ideas

    Estrategia demarketing

    Anlisis denegocios

    Desarrollode productos

    Mercadode prueba

    Comercializacin

  • Copyright 1999 Prentice Hall

    9-59-5

    CLIENTES

    CLIENTES

    COMPETIDORES

    COMPETIDORES

    DISTRIBUIDORES

    DISTRIBUIDORES

    PROVEEDORES

    PROVEEDORES

    Desarrollo de productos nuevosPaso 1. Generacin de ideas

    Desarrollo de productos nuevosPaso 1. Generacin de ideas

    La generacin de ideas es la bsquedasistemtica de ideas para productosnuevos obtenidas internamente y de:

  • Copyright 1999 Prentice Hall

    9-69-6

    Determinar qu ideas son buenas y desechar las malas lo antes posible.

    Muchas empresas tienen sistemas para calificar y depurar ideas, que estiman:

    Tamao del mercado

    Precio del producto

    Tiempo y costos del desarrollo

    Costos de fabricacin

    Tasa de rendimiento

    Luego, la idea se evala con base en un conjunto de criterios generales de la empresa.

    Desarrollo de productos nuevosPaso 2. Depuracin de ideas

    Desarrollo de productos nuevosPaso 2. Depuracin de ideas

  • Copyright 1999 Prentice Hall

    9-79-7Desarrollo de productos nuevosPaso 3. Desarrollo y prueba de concepto

    Desarrollo de productos nuevosPaso 3. Desarrollo y prueba de concepto

    1. Desarrollar ideas de productopara convertirlas en conceptos

    de producto alternos

    1. Desarrollar ideas de productopara convertirlas en conceptos

    de producto alternos

    2. Prueba de conceptos - Probarlos conceptos de producto con

    grupos de clientes meta

    2. Prueba de conceptos - Probarlos conceptos de producto con

    grupos de clientes meta

    3. Escoger el mejor3. Escoger el mejor

  • Copyright 1999 Prentice Hall

    9-89-8Desarrollo de productos nuevosPaso 4. Desarrollo de estrategia de marketing

    Desarrollo de productos nuevosPaso 4. Desarrollo de estrategia de marketing

    Parte 2 Describe a corto plazo:Precio planeado del producto

    DistribucinPresupuesto de marketing

    Parte 2 Describe a corto plazo:Precio planeado del producto

    DistribucinPresupuesto de marketing

    Parte 3 Describe a largo plazo:Metas de ventas y utilidades

    Estrategia de mezcla de marketing

    Parte 3 Describe a largo plazo:Metas de ventas y utilidades

    Estrategia de mezcla de marketing

    Formular declaracin de estrategia de marketing

    Parte 1 Describe en general:Mercado meta

    Posicionamiento del productoMetas de ventas y utilidadesParticipacin en el mercado

    Parte 1 Describe en general:Mercado meta

    Posicionamiento del productoMetas de ventas y utilidadesParticipacin en el mercado

  • Copyright 1999 Prentice Hall

    9-99-9Desarrollo de productos nuevosPaso 5. Anlisis de negociosPaso 6. Desarrollo del producto

    Desarrollo de productos nuevosPaso 5. Anlisis de negociosPaso 6. Desarrollo del producto

    Anlisis de negocios

    Resea de proyecciones de ventas,costos y utilidades para determinar

    si satisfacen los objetivos de la empresa

    Anlisis de negocios

    Resea de proyecciones de ventas,costos y utilidades para determinar

    si satisfacen los objetivos de la empresa

    Si s, pasar aldesarrollo del producto

    Si s, pasar aldesarrollo del producto

    Si no, eliminar elconcepto de producto

    Si no, eliminar elconcepto de producto

  • Copyright 1999 Prentice Hall

    9-109-10Desarrollo de productos nuevosPaso 7. Mercado de prueba

    Desarrollo de productos nuevosPaso 7. Mercado de prueba

    Mercado deprueba estndar

    Campaa cabal demarketing en unascuantas ciudadesrepresentativas

    Mercado deprueba estndar

    Campaa cabal demarketing en unascuantas ciudadesrepresentativas

    Mercado deprueba simulado

    Prueba en un entornode compras simulado

    con una muestrade consumidores.

    Mercado deprueba simulado

    Prueba en un entornode compras simulado

    con una muestrade consumidores.

    Mercadode pruebacontrolado

    Unas cuantas tiendasque aceptaron

    trabajar nuevosproductos a cambio

    de una cuota.

    Mercadode pruebacontrolado

    Unas cuantas tiendasque aceptaron

    trabajar nuevosproductos a cambio

    de una cuota.

  • Copyright 1999 Prentice Hall

    9-119-11Desarrollo de productos nuevosPaso 8. Comercializacin

    Desarrollo de productos nuevosPaso 8. Comercializacin

    Cundo?Cundo? Dnde?Dnde? A quin?A quin? Cmo?Cmo?

    Comercializacin es laintroduccin del nuevo producto

    en el mercado.

  • Copyright 1999 Prentice Hall

    9-129-12Aceleracin del desarrolloAceleracin del desarrollo

    Paso 1Paso 1

    Paso 2Paso 2

    Paso 3Paso 3

    Paso 4Paso 4P

    aso

    1

    Pas

    o2

    Paso 3

    Paso 4

    Secuencial Simultneo

  • Copyright 1999 Prentice Hall

    9-139-13Ciclo de vida de los productosCiclo de vida de los productos

    Tiempo

    Desarrollodel

    producto

    Introduccin

    Utilidades

    Ventas

    Crecimiento Madurez Decadencia

    Prdidas /Inversin ($)

    Ventas yutilidades ($)

    Ventas y utilidades durante la existencia del producto,desde su introduccin hasta su decadencia

  • Copyright 1999 Prentice Hall

    9-149-14Etapa de introduccin del PLCEtapa de introduccin del PLC

    Resumen de caractersticas, objetivos y estrategias

    VentasVentas

    CostosCostos

    UtilidadesUtilidades

    Objetivos de marketingObjetivos de marketing

    ProductoProducto

    PrecioPrecio

    Ventas bajasVentas bajas

    Costo alto por clienteCosto alto por cliente

    NegativasNegativas

    Crear conciencia del productoy lograr que lo prueben

    Crear conciencia del productoy lograr que lo prueben

    Ofrecer un producto bsicoOfrecer un producto bsico

    Usar costo ms margenUsar costo ms margen

    DistribucinDistribucin Establecer distribucin selectivaEstablecer distribucin selectiva

    PublicidadPublicidad Crear conciencia entre adoptado-res tempranos y distribuidores

    Crear conciencia entre adoptado-res tempranos y distribuidores

  • Copyright 1999 Prentice Hall

    9-159-15Etapa de crecimiento del PLCEtapa de crecimiento del PLC

    Resumen de caractersticas, objetivos y estrategias

    VentasVentas

    CostosCostos

    UtilidadesUtilidades

    Objetivos de marketingObjetivos de marketing

    ProductoProducto

    PrecioPrecio

    Aumento rpido en las ventasAumento rpido en las ventas

    Costo medio por clienteCosto medio por cliente

    Aumento en las utilidadesAumento en las utilidades

    Maximizar participacinMaximizar participacin

    Ofrecer extensiones de producto,servicio, garanta

    Ofrecer extensiones de producto,servicio, garanta

    Precio para penetrar el mercadoPrecio para penetrar el mercado

    DistribucinDistribucin Lograr distribucin intensivaLograr distribucin intensiva

    PublicidadPublicidad Crear conciencia e inters en el mercado de masas

    Crear conciencia e inters en el mercado de masas

  • Copyright 1999 Prentice Hall

    9-169-16Etapa de madurez del PLCEtapa de madurez del PLC

    Resumen de caractersticas, objetivos y estrategias

    VentasVentas

    CostosCostos

    UtilidadesUtilidades

    Objetivos de marketingObjetivos de marketing

    ProductoProducto

    PrecioPrecio

    Ventas mximasVentas mximas

    Costo bajo por clienteCosto bajo por cliente

    Utilidades elevadasUtilidades elevadas

    Maximizar utilidades pero defendiendo la participacinMaximizar utilidades pero

    defendiendo la participacin

    Diversificar marcas y modelosDiversificar marcas y modelos

    Precio comparable con el de los mejores competidores

    Precio comparable con el de los mejores competidores

    DistribucinDistribucin Lograr distribucin ms intensivaLograr distribucin ms intensiva

    PublicidadPublicidad Subrayar diferencias y beneficiosde la marca

    Subrayar diferencias y beneficiosde la marca

  • Copyright 1999 Prentice Hall

    9-179-17Etapa de decadencia del PLCEtapa de decadencia del PLC

    Resumen de caractersticas, objetivos y estrategias

    VentasVentas

    CostosCostos

    UtilidadesUtilidades

    Objetivos de marketingObjetivos de marketing

    ProductoProducto

    PrecioPrecio

    Baja en las ventasBaja en las ventas

    Costo bajo por clienteCosto bajo por cliente

    Baja en las utilidadesBaja en las utilidades

    Reducir gastos y sacar provecho a la marca

    Reducir gastos y sacar provecho a la marca

    Descontinuar artculos dbilesDescontinuar artculos dbiles

    Recortar precioRecortar precio

    DistribucinDistribucin Ser selectivos: descontinuar expendios no rentablesSer selectivos: descontinuar

    expendios no rentables

    PublicidadPublicidad Reducir al nivel necesario para conservar los clientes ms lealesReducir al nivel necesario para

    conservar los clientes ms leales

    Copyright 1999 Prentice Hall

    9-*

    Captulo 9

    Estrategias de desarrollo de

    nuevos productos y de ciclo

    de vida de los productos

    Marketing

    Octava edicin

    Philip Kotler y Gary Armstrong

    Copyright 1999 Prentice Hall

    9-*

    Estrategias de desarrollo

    de nuevos productos

    Strategies for Obtaining New Product Ideas

    Productos

    originales

    Mejoras a

    productos

    Modificaciones

    de productos

    Nuevas

    marcas

    Empresas

    adquiridas

    Patentes

    adquiridas

    Licencias

    adquiridas

    Estrategias para obtener ideas de productos nuevos

    Copyright 1999 Prentice Hall

    9-*

    Causas del fracaso de productos

    nuevos

    Sobreestimar el tamao del mercado

    Problemas en el diseo de productos

    Producto con posicionamiento, precio o publicidad

    incorrectos

    Costos de desarrollo de productos

    Acciones competitivas

    Para crear productos nuevos que tengan xito, la empresa debe:

    entender a sus clientes, mercados y competidores

    desarrollar productos que proporcionen un valor superior a los clientes.

    Copyright 1999 Prentice Hall

    9-*

    Proceso de desarrollo de

    nuevos productos

    Generacin

    de ideas

    Depuracin

    de ideas

    Desarrollo

    y prueba

    de ideas

    Estrategia de

    marketing

    Anlisis de

    negocios

    Desarrollo

    de productos

    Mercado

    de prueba

    Comercializacin

    New Product Development Process

    This CTR corresponds to Figure 9-1 on p. 275 and relates to the discussion on pp. 275-286.

    Stages in New Product Development

    Idea Generation. This stage is the systematic search for new product ideas. Sources for new product ideas include internal sources, customers, competitor's products, distributors & suppliers, and other sources.

    Screening. This stage focuses on reducing the number of ideas by dropping poor ideas as soon as possible. This helps reduce costs and focus attention more productively.

    Concept Development and Testing. This stage involves translating ideas into product concepts or detailed versions of the ideas stated in meaningful consumer terms. Concepts are then tested on target consumers.

    Marketing Strategy. This stage consists of three parts. The first part describes the target market, the second part outlines the product's projected price, distribution, and budget for the first year, the third part describes long-term sales, profit goals, and marketing mix strategy.

    Business Analysis. This stage reviews the sales, costs, and profit projections for the product to find out if they satisfy overall company objectives.

    Product Development. This stage involves bringing the product concept into existence as a physical product to ensure that the idea is a workable product.

    Test Marketing. This is the stage at which the product and marketing program are implemented in one or more realistic market settings.

    Commercialization. This stage involves actually introducing the new product into the competitive marketplace. In this stage, the company must make decisions involving when to introduce, where, to whom, and how.

    Copyright 1999 Prentice Hall

    9-*

    C

    L

    I

    E

    N

    T

    E

    S

    C

    O

    M

    P

    E

    T

    I

    D

    O

    R

    E

    S

    D

    I

    S

    T

    R

    I

    B

    U

    I

    D

    O

    R

    E

    S

    P

    R

    O

    V

    E

    E

    D

    O

    R

    E

    S

    Desarrollo de productos nuevos

    Paso 1. Generacin de ideas

    La generacin de ideas es la bsqueda sistemtica de ideas para productos nuevos obtenidas internamente y de:

    Copyright 1999 Prentice Hall

    9-*

    Determinar qu ideas son buenas y desechar las malas lo antes posible.

    Muchas empresas tienen sistemas para calificar y depurar ideas, que estiman:

    Tamao del mercado

    Precio del producto

    Tiempo y costos del desarrollo

    Costos de fabricacin

    Tasa de rendimiento

    Luego, la idea se evala con base en un conjunto de criterios generales de la empresa.

    Desarrollo de productos nuevos

    Paso 2. Depuracin de ideas

    Copyright 1999 Prentice Hall

    9-*

    Desarrollo de productos nuevos

    Paso 3. Desarrollo y prueba de concepto

    1. Desarrollar ideas de producto

    para convertirlas en conceptos

    de producto alternos

    2. Prueba de conceptos - Probar

    los conceptos de producto con

    grupos de clientes meta

    3. Escoger el mejor

    Copyright 1999 Prentice Hall

    9-*

    Desarrollo de productos nuevos

    Paso 4. Desarrollo de estrategia de marketing

    Parte 2 Describe a corto plazo:

    Precio planeado del producto

    Distribucin

    Presupuesto de marketing

    Parte 3 Describe a largo plazo:

    Metas de ventas y utilidades

    Estrategia de mezcla de marketing

    Formular declaracin de estrategia de marketing

    Parte 1 Describe en general:

    Mercado meta

    Posicionamiento del producto

    Metas de ventas y utilidades

    Participacin en el mercado

    Copyright 1999 Prentice Hall

    9-*

    Desarrollo de productos nuevos

    Paso 5. Anlisis de negocios

    Paso 6. Desarrollo del producto

    Anlisis de negocios

    Resea de proyecciones de ventas,

    costos y utilidades para determinar

    si satisfacen los objetivos de la empresa

    Si s, pasar al

    desarrollo del producto

    Si no, eliminar el

    concepto de producto

    Copyright 1999 Prentice Hall

    9-*

    Desarrollo de productos nuevos

    Paso 7. Mercado de prueba

    Mercado de

    prueba estndar

    Campaa cabal de

    marketing en unas

    cuantas ciudades

    representativas

    Mercado de

    prueba simulado

    Prueba en un entorno

    de compras simulado

    con una muestra

    de consumidores.

    Mercado

    de prueba

    controlado

    Unas cuantas tiendas

    que aceptaron

    trabajar nuevos

    productos a cambio

    de una cuota.

    Test Marketing

    This CTR relates to the discussion on pp. 282-284.

    Test Marketing

    Standard Test Markets. Under this approach, the company finds a small number of representative test cities, conducts a full marketing campaign in those cities, and then measures and evaluates performance. This provides a real world picture of how the product performs. But there are drawbacks. Standard testing is expensive, long, and tips competitors to company strategy.

    Controlled Test Markets. This approach uses a research firm that has designated store placement space for their clients. Participating stores receive a fee. Some services like Scantrack (Nielsen) and BehaviorScan (IRI) offer computerized monitoring of individual consumer panels whose television viewing is cross-tabulated with store purchases. Controlled testing is quicker and less expensive than standard testing. Concerns revolve around representativeness of the test markets (small size) and tipping off competitors.

    Simulated Test Markets. This approach creates a simulated shopping environment by the company or research firm. Consumers are exposed to promotions and then given money to shop with. Purchase patterns are observed and consumers are interviewed afterward by researchers. Simulated test marketing is inexpensive and quick. Representativeness and demand characteristics are concerns and this approach might be used as a pretest for a go-no go decision on further testing.

    Copyright 1999 Prentice Hall

    9-*

    Desarrollo de productos nuevos

    Paso 8. Comercializacin

    Cundo?

    Dnde?

    A quin?

    Cmo?

    Comercializacin es la introduccin del nuevo producto en el mercado.

    Copyright 1999 Prentice Hall

    9-*

    Aceleracin del desarrollo

    Paso 1

    Paso 2

    Paso 3

    Paso 4

    Secuencial

    Simultneo

    Speeding Up Development

    This CTR relates to the material on p. 286-287.

    Speeding Up New-Product Development

    Sequential Product Development. Isolated groups in each stage work on the new product until the stage is completed. This completed stage is then passed to the next group or department to begin its stage in the process. This organization brings control to complex development projects and reduces the risk associated with costly mistakes. But it is also extremely slow and subjects the company to greater competitive risk and potential lost sales while the process is completed.

    Simultaneous Product Development. This approach organizes new product development into a more flexible integration of each stage in the process. Simultaneous organization features close communication and coordination of departments and groups working on different stages, more overlap of work on steps to save time and increase effectiveness. Coordination facilitates each stage benefiting from the developmental process of the other stages while still planning what the product should be and will become.

    Copyright 1999 Prentice Hall

    9-*

    Ciclo de vida de los productos

    Tiempo

    Desarrollo

    del

    producto

    Introduccin

    Utilidades

    Ventas

    Crecimiento

    Madurez

    Decadencia

    Prdidas /

    Inversin ($)

    Ventas y

    utilidades ($)

    Ventas y utilidades durante la existencia del producto,

    desde su introduccin hasta su decadencia

    The Product Life-Cycle

    This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293.

    Instructors Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.

    Product Life Cycle Stages

    Product Development. Development begins when the company finds and develops a new product idea. During development the product has costs but no sales. Development costs must be strategically weighed against the projected length of the product's PLC.

    Introduction. During the introduction of new products initial sales growth is slow as the market is just becoming aware of the product. Profits are usually nonexistent at this stage due to heavy promotional spending.

    Growth. This stage is characterized by rapid market acceptance of the product and increasing profits.

    Maturity. In maturity there is a slowdown in sales growth as the product has achieved acceptance by most potential customers. Profits may level off or decline as marketing costs increase to defend existing market share.

    Decline. In this period sales begin to fall off and profits decline dramatically.

    Copyright 1999 Prentice Hall

    9-*

    Etapa de introduccin del PLC

    Resumen de caractersticas, objetivos y estrategias

    Ventas

    Costos

    Utilidades

    Objetivos de marketing

    Producto

    Precio

    Ventas bajas

    Costo alto por cliente

    Negativas

    Crear conciencia del producto

    y lograr que lo prueben

    Ofrecer un producto bsico

    Usar costo ms margen

    Distribucin

    Establecer distribucin selectiva

    Publicidad

    Crear conciencia entre adoptado-res tempranos y distribuidores

    Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.

    Product Life Cycle Strategies

    Product Life-Cycle Strategies

    This CTR relates to the material on pp. 289 and 293.

    Copyright 1999 Prentice Hall

    9-*

    Etapa de crecimiento del PLC

    Resumen de caractersticas, objetivos y estrategias

    Ventas

    Costos

    Utilidades

    Objetivos de marketing

    Producto

    Precio

    Aumento rpido en las ventas

    Costo medio por cliente

    Aumento en las utilidades

    Maximizar participacin

    Ofrecer extensiones de producto, servicio, garanta

    Precio para penetrar el mercado

    Distribucin

    Lograr distribucin intensiva

    Publicidad

    Crear conciencia e inters en el mercado de masas

    Product Life-Cycle Strategies

    This CTR relates to the material on pp. 289-290 and 293.

    Product Life-Cycle Strategies

    Growth. In this stage the company experiences both increasing sales and competition. Promotion costs are spread over larger volume and strategic decisions focus on growth strategies. Strategies include adding new features, improving quality, increasing distribution, and entering new market segments.

    Copyright 1999 Prentice Hall

    9-*

    Etapa de madurez del PLC

    Resumen de caractersticas, objetivos y estrategias

    Ventas

    Costos

    Utilidades

    Objetivos de marketing

    Producto

    Precio

    Ventas mximas

    Costo bajo por cliente

    Utilidades elevadas

    Maximizar utilidades pero defendiendo la participacin

    Diversificar marcas y modelos

    Precio comparable con el de los mejores competidores

    Distribucin

    Lograr distribucin ms intensiva

    Publicidad

    Subrayar diferencias y beneficios de la marca

    Product Life Cycle Strategies

    Maturity. In this stage the company must manage slower growth over a longer period of time. Strategic decisions made in the growth stage may limit choices now. Marketing managers must proactively seek advantage by either market modification to increase consumption, product modification to attract new users (quality, feature, and style improvements), or marketing mix modification in an attempt to improve competitive position.

    Product Life-Cycle Strategies

    This CTR relates to the material on pp. 290-292 and 293.

    Copyright 1999 Prentice Hall

    9-*

    Etapa de decadencia del PLC

    Resumen de caractersticas, objetivos y estrategias

    Ventas

    Costos

    Utilidades

    Objetivos de marketing

    Producto

    Precio

    Baja en las ventas

    Costo bajo por cliente

    Baja en las utilidades

    Reducir gastos y sacar provecho a la marca

    Descontinuar artculos dbiles

    Recortar precio

    Distribucin

    Ser selectivos: descontinuar expendios no rentables

    Publicidad

    Reducir al nivel necesario para conservar los clientes ms leales

    Product Life-Cycle Strategies

    This CTR relates to the material on pp. 292-293.

    Product Life Cycle Strategies

    Decline. In this stage the costs of managing the product may eventually exceed profits. Rate of decline is a major factor in setting strategy. Management may maintain the brand as competitors drop out, harvest the brand by reducing costs of support for short term profit increases, or drop the product (divest) altogether.

    New Product Development Process

    This CTR corresponds to Figure 9-1 on p. 275 and relates to the discussion on pp. 275-286.

    Stages in New Product Development

    Idea Generation. This stage is the systematic search for new product ideas. Sources for new product ideas include internal sources, customers, competitor's products, distributors & suppliers, and other sources.

    Screening. This stage focuses on reducing the number of ideas by dropping poor ideas as soon as possible. This helps reduce costs and focus attention more productively.

    Concept Development and Testing. This stage involves translating ideas into product concepts or detailed versions of the ideas stated in meaningful consumer terms. Concepts are then tested on target consumers.

    Marketing Strategy. This stage consists of three parts. The first part describes the target market, the second part outlines the product's projected price, distribution, and budget for the first year, the third part describes long-term sales, profit goals, and marketing mix strategy.

    Business Analysis. This stage reviews the sales, costs, and profit projections for the product to find out if they satisfy overall company objectives.

    Product Development. This stage involves bringing the product concept into existence as a physical product to ensure that the idea is a workable product.

    Test Marketing. This is the stage at which the product and marketing program are implemented in one or more realistic market settings.

    Commercialization. This stage involves actually introducing the new product into the competitive marketplace. In this stage, the company must make decisions involving when to introduce, where, to whom, and how.

    Test Marketing

    This CTR relates to the discussion on pp. 282-284.

    Test Marketing

    Standard Test Markets. Under this approach, the company finds a small number of representative test cities, conducts a full marketing campaign in those cities, and then measures and evaluates performance. This provides a real world picture of how the product performs. But there are drawbacks. Standard testing is expensive, long, and tips competitors to company strategy.

    Controlled Test Markets. This approach uses a research firm that has designated store placement space for their clients. Participating stores receive a fee. Some services like Scantrack (Nielsen) and BehaviorScan (IRI) offer computerized monitoring of individual consumer panels whose television viewing is cross-tabulated with store purchases. Controlled testing is quicker and less expensive than standard testing. Concerns revolve around representativeness of the test markets (small size) and tipping off competitors.

    Simulated Test Markets. This approach creates a simulated shopping environment by the company or research firm. Consumers are exposed to promotions and then given money to shop with. Purchase patterns are observed and consumers are interviewed afterward by researchers. Simulated test marketing is inexpensive and quick. Representativeness and demand characteristics are concerns and this approach might be used as a pretest for a go-no go decision on further testing.

    Speeding Up Development

    This CTR relates to the material on p. 286-287.

    Speeding Up New-Product Development

    Sequential Product Development. Isolated groups in each stage work on the new product until the stage is completed. This completed stage is then passed to the next group or department to begin its stage in the process. This organization brings control to complex development projects and reduces the risk associated with costly mistakes. But it is also extremely slow and subjects the company to greater competitive risk and potential lost sales while the process is completed.

    Simultaneous Product Development. This approach organizes new product development into a more flexible integration of each stage in the process. Simultaneous organization features close communication and coordination of departments and groups working on different stages, more overlap of work on steps to save time and increase effectiveness. Coordination facilitates each stage benefiting from the developmental process of the other stages while still planning what the product should be and will become.

    The Product Life-Cycle

    This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293.

    Instructors Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.

    Product Life Cycle Stages

    Product Development. Development begins when the company finds and develops a new product idea. During development the product has costs but no sales. Development costs must be strategically weighed against the projected length of the product's PLC.

    Introduction. During the introduction of new products initial sales growth is slow as the market is just becoming aware of the product. Profits are usually nonexistent at this stage due to heavy promotional spending.

    Growth. This stage is characterized by rapid market acceptance of the product and increasing profits.

    Maturity. In maturity there is a slowdown in sales growth as the product has achieved acceptance by most potential customers. Profits may level off or decline as marketing costs increase to defend existing market share.

    Decline. In this period sales begin to fall off and profits decline dramatically.

    Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.

    Product Life Cycle Strategies

    Product Life-Cycle Strategies

    This CTR relates to the material on pp. 289 and 293.

    Product Life-Cycle Strategies

    This CTR relates to the material on pp. 289-290 and 293.

    Product Life-Cycle Strategies

    Growth. In this stage the company experiences both increasing sales and competition. Promotion costs are spread over larger volume and strategic decisions focus on growth strategies. Strategies include adding new features, improving quality, increasing distribution, and entering new market segments.

    Product Life Cycle Strategies

    Maturity. In this stage the company must manage slower growth over a longer period of time. Strategic decisions made in the growth stage may limit choices now. Marketing managers must proactively seek advantage by either market modification to increase consumption, product modification to attract new users (quality, feature, and style improvements), or marketing mix modification in an attempt to improve competitive position.

    Product Life-Cycle Strategies

    This CTR relates to the material on pp. 290-292 and 293.

    Product Life-Cycle Strategies

    This CTR relates to the material on pp. 292-293.

    Product Life Cycle Strategies

    Decline. In this stage the costs of managing the product may eventually exceed profits. Rate of decline is a major factor in setting strategy. Management may maintain the brand as competitors drop out, harvest the brand by reducing costs of support for short term profit increases, or drop the product (divest) altogether.