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Lecture Business marketing: Connecting strategy, relationships, and learning (4/e): Chapter 8 - Dwyer, Tanner

Chapter 8 - Developing and managing products. After reading this chapter, you should be able to: Apply portfolio and product life cycle approaches to managing existing products. Identify the process of developing products internally. Discuss the importance of lead users to the product development process. Indicate what partnering, with both suppliers and customers, means to the product development process. | McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Business Marketing Programming Part Three Part Three Business Marketing Programming Chapter 8 Developing and Managing Products Chapter 9 Business Marketing Channels Chapter 10 Creating Customer Dialogue Chapter 11 Communicating via Advertising, Trade Shows, and PR Chapter 12 The One-to-One Media Chapter 13 Sales and Sales Management Chapter 14 Pricing and Negotiating for Value Chapter 8 Developing and Managing Offerings: What do Customers Want? THE OFFERING CONCEPT COMPETITIVE ADVANTAGE: PRODUCT: A Bundle of Benefits and a Collection of Solutions to Needs and Wants How the Product or Service Satisfies a Need BENEFIT: A Benefit That Satisfies a Customer Better than a Competitor’s Product Benefits 8- ACTIVITIES IN MANAGING PRODUCTS UNDERSTAND THE PRODUCT LIFE CYCLE (PLC) AND APPLY IT TO PRODUCT STRATEGY UNDERSTAND THE CONCEPT OF PRODUCT PORTFOLIOS KNOW WHEN TO HARVEST A PRODUCT 8- . | McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Business Marketing Programming Part Three Part Three Business Marketing Programming Chapter 8 Developing and Managing Products Chapter 9 Business Marketing Channels Chapter 10 Creating Customer Dialogue Chapter 11 Communicating via Advertising, Trade Shows, and PR Chapter 12 The One-to-One Media Chapter 13 Sales and Sales Management Chapter 14 Pricing and Negotiating for Value Chapter 8 Developing and Managing Offerings: What do Customers Want? THE OFFERING CONCEPT COMPETITIVE ADVANTAGE: PRODUCT: A Bundle of Benefits and a Collection of Solutions to Needs and Wants How the Product or Service Satisfies a Need BENEFIT: A Benefit That Satisfies a Customer Better than a Competitor’s Product Benefits 8- ACTIVITIES IN MANAGING PRODUCTS UNDERSTAND THE PRODUCT LIFE CYCLE (PLC) AND APPLY IT TO PRODUCT STRATEGY UNDERSTAND THE CONCEPT OF PRODUCT PORTFOLIOS KNOW WHEN TO HARVEST A PRODUCT 8- PRODUCT LIFE CYCLE DECISION POINTS Rapid expansion of distributors Product line expansion Niche marketing Continued heavy promotion Sales force incentives and management Search for new sources for supply Need to balance supply and demand Stock-out and back-order damage control Development Introduction Growth Maturity Decline Time Strongly defend home-market niches Prune product lines Emphasize gross contribution rather than market share and sales volume Review logistics: prune costs Reduce pioneering sale force effort, more telemarketing More trade than consumer promotion Introduce flankers, private labels, generics Reinvest in market research & R&D Use promotions to increase heavy-user loyalty Freeze investment in plant Productivity review Special trade promotions to keep channels happy Focused attacks on vulnerable competitors Long-term price reduction or at least a short-term price promotion Keep plant at maximum capacity and subcontract excess Cut low-gross-margin .