chap10 Product Management and New–Product Develop.ppt

At the end of this presentation, you should be able to: Market Introduction – Investing in the Future Market Growth Stage – Profits Go Up and Down Market Maturity Stage – Sales Level Off, Profits Continue Down Sales Decline – A Time of Replacement Product Life Cycles Should Be Related to Specific Markets Product Life Cycles Vary in Length Interactive Exercise: Adoption Other Issues in Product Life Cycle Length Planning for Different Stages of the Product Life Cycle Managing Mature Products Are Product Modifications Really New Products? Phasing Out Dying Products New Product Planning An Organized New-Product Development Process is Critical (Exhibit 10-4) Step 1: Idea Generation Step 2: Screening Step 2: Screening and Types of New Product Opportunities (Exhibit 10-5) Step 3: Idea evaluation Step 4: Development Step 5: Commercialization New Product Development: A Total Company Effort (Exhibit 10-6) New Product Development: A Total Company Effort (Exhibit 10-6) Need for Product Managers Total Quality Management is Easier Said Than Done (Exhibit 10-7) Why Things Go Wrong (Exhibit 10-8) Building Quality into Services Other Issues in Quality Implementation Efforts You should now be able to: Key Terms Summary Overview Where a product is in its life cycle and the length of the cycle both affect marketing strategy planning. Key Issues ? Marketing managers must allocate sufficient money to cover the costs of introducing new products, such as design, development, and packaging. ? Planning must specify how the new product will be distributed, which means setting up channels of distribution. Promotion must sell the whole idea—not just a specific brand. Discussion Question: Many marketers are tempted to set a high initial price for a new product—especially one that is a unique product idea. Why might they want to set a relatively high price early in the product’s life? ? How fast the product is moving through its life cycle also affects strategy planning. For example, i