products that have been improved
new product development
poor product design
incorrectly positioned products
faulty pricing or communication strategy
ethnocentrism (me me me me)
and develop products that deliver superior value to customers
2. Idea Screening
3. Concept development + testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
External Sources: Customers, Competitors, Distributors, Suppliers
– Fit to company mission? Marketing strategy?
-enough resources to develop?
-competitive advantage ?
-can it be easily distributed/ promoted ?
*Concept testing* testing the concept with a group of target consumers to determine if they have strong consumer appeal
(important to test before to turn them into actual products)
sales and profit goals
+ Short term + for the first year
+ Long term + Marketing mix strategy
BCG Matrix Anylsis (will the ‘?’ turn into a Star, Cash cow or dog?)
Shows if product idea = workable product
Not all products are test marketed
It can be costly, but not doing it could be even more costly
does not guarantee success
when to launch
where to launch
planned market roll out
Some enter the decline stage but are then cycled back into the growth stage through strong promotion or repositioning.
Some products die quickly.
little or not profit
high distribution and promotion expense
new competitors enter the market
price to increase volume and market share
invest in consumer education
promotion and manufacturing costs gain economies of scale
substitute products emerge
number of competitors begins to decline
increased promotion needed to support sales and profits
product modification or repositioning may be required
harvest the product
drop the product
-New users and market segments
-Increased usage among present customers
-Change product characteristics or features
Marketing mix modifications