MKT study guide exam 2

Identification of a well defined target market

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Identification of a well defined target market, specific customer needs, wants and preferences, what the product will be and do Marketing Reasons for New Product Failures Insignificant point of difference No economical access to buyers Incomplete market and product protocol before product development starts Not satisfying customer needs on critical factors Bad timing Poor product quality Too little market attractiveness Poor execution of the marketing mix: brand name, package, price, promotion, distribution THE NEW-PRODUCT PROCESS The seven stages an organization goes through to identify business opportunities and convert them into salable products or services Stage 1: New-Product Strategy Development Stage that defines the role for a new product in terms of the firms overall objectives Uses both a SWOT analysis and environmental scanning Stage 2: Idea Generation Involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage’s results Open innovation—organization finds and executes creative new product ideas by developing strategic relationships with outside individuals and organizations Examples o Customer and Supplier Suggestions
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o Employee and Co Worker Suggestions o Research and Development Labs o Competitive Products o Smaller Firms, Universities, and Inventors Step 3: Screening and Evaluation The stage that internally and externally evaluates new product ideas to eliminate those that warrant no further effort Internal Approach o Customer experience management (CEM) —the process of managing the entire customer experience within the company External Approach o Concept tests—external evaluations with consumers that consist of preliminary testing of a new product idea rather than an actual product Stage 4: Business Analysis Specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections Consider capacity management—integrating the service component of the marketing mix with efforts to influence consumer demand Stage 5: Development Turns the idea on paper into a prototype Stage 6: Market Testing The stage of the new product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy it Test Marketing—involved offering a product for sale on a limited basis in a defined area Simulates Test Markets—stimulates a full scale test market but in a limited fashion Step 7: Commercialization The stage that positions and launches a new product in full scale production and sales
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Chapter 11: Managing Successful Products, Services, and Brands 29/10/2012 19:24:00 CHARTING THE PRODUCT LIFE CYCLE Stages a new product goes through in the market place: introduction, growth, maturity, and decline Introduction Stage When a product is introduced to its intended market Sales grow slowly, profits are minimal Heavy spending on advertising and promotion to stimulate
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Identification of a well defined target market specific...

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