New Product Ideas and Development

• Firm can obtain product in two ways: by acquiring a company, patent or license to produce
• New products: Original products, product improvement, product modifications, and new brands.
• Major stages in product development: Idea generation, idea screening, concept development/testing, marketing strategy, business analysis, product development, test marketing, and commercialization.

Idea Generation

• The systematic search for new product ideas.
• Internal sources and formal R&D can aid in finding new ideas.
• Companies develop strong internal social networks and intrapreneurial programs to encourage employees to develop new product ideas.

External Idea Sources

• Distributors are close to the market, providing insights into consumer problems and new product possibilities.
• Suppliers can inform the company about new concepts and techniques.
• Competitors' ads can offer inspiration for new products.
• Customer questions and complaints can lead to new products that solve consumer problems.
• Other sources: trade magazines, shows, websites, seminars, government agencies, advertising agencies, marketing research firms, universities, commercial laboratories, and inventors.
• Crowdsourcing: Inviting broad communities of people, including customers, employees, independent scientists, researchers, and the public, into the new product innovation process.

Idea Screening

• Screening new product ideas to identify promising ones and eliminate poor ones.
• A product idea is an idea for a possible product that the company can envision offering to the market.
• A product concept is a detailed version of the idea stated in meaningful consumer terms.
• A product image is how consumers perceive an actual or potential product.
• Concept testing involves testing new product concepts with a group of target consumers to determine their appeal.

Marketing Strategy Development

• Designing an initial marketing strategy for a new product based on the product concept.
• The initial part describes the target market, planned value proposition, sales, market share, and profit goals.
• The second part outlines the product's planned price, distribution, and marketing budget for the first year.
• The third part describes the planned long-run sales, profit goals, and market mix strategy.

Business Analytics

• A review of the sales, costs, and profit projections for a new product to determine if these factors satisfy the company's objectives.
• Product development involves company growth by offering modified or new products to current market segments.

Test Marketing

• The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings.
• Sometimes, companies skip test marketing to capitalize on rapidly evolving market developments.
• Controlled test markets involve testing new products and tactics among controlled panels of shoppers/stores.
• Stimulated test markets involve researchers measuring consumer responses to new marketing tactics and products.
• Commercialization: Introducing a new product into the market.
• Consumer-centered new product development focuses on finding innovative ways to address customer issues, aiming for heightened customer satisfaction.

Most Successful Products

• Differentiated.
• Solves major customer problems.
• Offers a strong customer value proposition

Team-Based New Product Development

• Departments collaborate closely, overlapping product development steps for time-saving and effectiveness.
• Product life cycle: the course that a product's sales and profits take over its lifetime

Style

• A basic and distinctive mode of expression.
• Fashion is a currently accepted or popular style in a given field.
• Fads: Temporary periods of high sales driven by consumer enthusiasm

Introduction Stage

• The PLC stage where a new product is first distributed and available for purchase.
• Growth stage: the PLC stage in which a product's sales start climbing quickly.
• Maturity stage: the PLC stage in which a product's sales growth slows or levels off.
• Decline stage: the PLC stage in which a product's sales fade away.

Products

• Things that can be offered to amarket for attention, acquisition, use or consumption that might satisfy a want or need
• Services: An activity, benefit, or satisfaction offered for sale
• Consumer products: product baught by final consumers for personal consumption
• Convenience products a consumer product that consumers usually bay frequently, immediately and with minimal comparison and buying effort: Ex: laundry detergent, soft drinks
• Shopping products: consumer product that the consumer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price and style Ex: clothing, furniture
• Specialty products: consumer product with unique Characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort Ex: designer clothes, lamborghini.
• Unsought products: the consumer either does not know about or know's about but does not normally consider buying Ex: life insurance

Type of consumer product marketing

• Convenience marketing: frequent purchase, less planning, little comparison, low customer Involvement, low price, widespread Distribution, convenient locations mass promotion by the producer, toothpaste,laundry detergent
• Shopping marketing: less frequent purchase, much planning, comparison of brands, price, quality, nigner price advertising personal selling by both producer resellers, selective distribution in fuwer outlets, Major appliances and televisions, furniture
• Specialty marketing: brand preferenceLoyalty, specialpurchase effort,low ledge, nignest price, exclusivdist inonly one or a few outlets, luxury goods suchas rolex and watcher
• Usought marketing:Little product quareness or knowLedge, varies, aggressive ads and personal selling by the producer+ reseller, lifeinsurance and funerals
• Industrial products Individuals and organizations bought product for processing or for use in conducting a business
• Social marketing: Use of traditional business marketing concepts for encourage behaviors that will create well being

Individual product decistons

• Include product attributes
• Branding
• Packaging
• Labeling
• Product support and service

Product Quality

• Characteristics of a product or service that bear on its alality to satisey stated customer needs
• Total quality management approach involve's all companys people that constantly improving the quality of products service business
• Return On Quality is viewing quality as an investment and nolding quality efforts accountable for bottom line results, and products ability to perform its functions
• Conformance, quality, freedom from defects to deliver a targeted level of performance
• Packaging designing activities product
• Product lines are a group of producto related because they perform in a similar manner

Product line length

• The number of items in the product line
• Product line fillings: involves adding more items within the present rauge of line
• Product linestretching: line extends beyond its curveutrange
• Downward stretan: to plug a market hole respond by competitors
• Upward, Stretor shifting upward to add prestige to their current products or to reap nigner margins
• Product mix, set of all products

Length

• Refers to the total number of items a company carries with in its product lives
• Depth: Refers to the number of versions offered of each product in the Line
• Consistency: Is how closely related the various product lives

Four service characteristics

• Include intangibility: services thet cannot bereen, tasted, felt, neald
• Service intangibility: services cannot bereen
• Variability service thet quality depends on who provides them
• Finseparability: produced and consumed beseparated
• Perishability. cant be stored for later
• Internal: Servies quality, selection trining, work eniovment, support
• Profitcuain: Chain that links service firm profits with employee and Customer Satisfaction equity differentialeffect that product its market
• Brand value, total financial value of a brand.
• Store, brands a brand created by reseller
• Extending brand name
• Brand extensions
• The activities involved in selling goods or services dir-ectly to final consumers for personal, nonbusiness use
• Retailing, retailers business wusse sales come primarily promretail-ing Shopper marketing
• Omni: Chaunel marketing in store buying online
• Specialty. narrow and product
• Department wide stores high volume
• Direct involved by sending out promotions by all
• Wholesale the activities