Chapter 9 - Product Life Cycle New Products(week 8 1...

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1 Product Life Cycle & New Products (week 8)
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2 Chapter Objectives 1. Identify the challenges companies face in creating a new-product development strategy. 2. List different sources for ideas generation, and discuss how an idea moves ahead through ideas screening, concept development and concept testing. 3. Outline how a potential product advances from a concept to a product through marketing strategy development, business analysis and product development. 4. Explain the purpose of test marketing, and distinguish between standard, controlled and simulated test markets. 5. Evaluate the product life-cycle theory, detailing the extent to which you accept the sequence of the introduction, growth, maturity and decline stages.
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3 The Product Lifecycle (PLC) After launching the new product, management wants the product to enjoy a long and happy life. Although it does not expect the product to sell forever, management wants to earn a decent profit to cover all the effort and risk that went into it. Management is aware that each product will have a life cycle, although the exact shape and length is not known in advance.
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4 Number of in-line skaters in the USA
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5 The Product Lifecycle (PLC) Product Development Begins when the company finds and develops a new product ideas. Introduction A period of slow sales growth as the product is being introduced to the market Growth Period of rapid market acceptance and sales growth Maturity A period of slowdown in sales growth as the product gained acceptance by most of buyers. Decline Period of drop in sales and profits as customers switch to new products
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6 Product Life Cycle (PLC)
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7 Video game consoles-class and form
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8 Typical Fashion, Style and Fad
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9 Marketing changes across the life cycle
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10 New Product Development Strategy 1. Rapid changes in consumer tastes, technology and competition, a company cannot rely solely on its existing products. 2. Customers want and expect the new and improved products that competition will do its best to provide.
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