Kotler_POM13e_Instructor_09_-_GE
Chapter 9- slide Copyright ? 2009 Pearson Education, Inc.
Publishing as Prentice Hall Chapter Nine
New-Product Development
and Product Life-Cycle
Strategies
New-Product Development Strategy Two ways to obtain new products
ACQUISITION refers to the buying of a whole company, a patent, or a license to produce someone else’s product
NEW PRODUCT DEVELOPMENT refers to original products, product improvements, product modi?cations, and new brands developed from the ?rm’s own research and development
New-Product Development Reasons for new product failure
New-Product Development Process Major Stages in New-Product Development
Managing New-Product Development New-Product Development Strategies Customer-centered new
product development
focuses on ?nding new
ways to solve customer
problems and create
more customer
satisfying experiences
?Begins and ends with
solving customer
problems
Product Life-Cycle Strategies Product Life Cycle
Product Life-Cycle Strategies
?Product development
–Sales are zero and investment costs mount ?Introduction
–Slow sales growth and pro?ts are nonexistent ?Growth
–Rapid market acceptance and increasing
pro?ts.
?Maturity
–Slowdown in sales growth and pro?ts level o ff
or decline
?Decline
–Sales fall o ff and pro?ts drop
Product Life-Cycle Strategies Fads are temporary
periods of unusually
high sales driven by
consumer
enthusiasm and
immediate product
or brand popularity
Product Life-Cycle Strategies
Product Life-Cycle Strategies
Introduction Stage
?Slow sales growth
?Little or no pro?t
?High distribution and promotion expense
Product Life-Cycle Strategies
Growth Stage
?Sales increase
?New competitors enter the market ?Price stability or decline to increase volume
?Consumer education
?Pro?ts increase
?Promotion and manufacturing costs gain economies of scale
Product Life-Cycle Strategies
Maturity Stage
?Slowdown in sales
?Many suppliers
?Substitute products ?Overcapacity leads to competition ?Increased promotion and R&D to support sales and pro?ts
Product Life-Cycle Strategies Maturity Stage Modifying Strategies
?MARKET modifying
- increase consumption ?PRODUCT modifying
- improve product ?MARKETING MIX modifying
- modify marketing mix
Product Life-Cycle Strategies
Decline Stage
?Maintain the product
?Harvest the product
?Drop the product
Additional Product and Service
Considerations
Product Decisions and Social Responsibility Public policy and regulations regarding developing and dropping products, patents, quality, and safety
Additional Product and Service Considerations
?Determining what products and services
to introduce in which
countries
?Standardization versus customization
?Packaging and labeling
?Customs, values, laws
International Product and Service Marketing—Challenges