Lecture Principles of Marketing - Chapter 8 presents the following content: New-product development strategy, new-product development process, managing new-product development, product life-cycle strategies, additional product and service considerations. | Chapter Eight New-Product Development and Product Life-Cycle Strategies Explain how companies find and develop new-product ideas. List and define the steps in the new-product development process. Describe the stages of the product life cycle. Describe how marketing strategies change during the product’s life cycle. 8- Copyright 2007, Prentice Hall, Inc. Firm History Steve Jobs’s creativity led to innovation in user friendliness of computers. LazerWriters and the Macintosh established Apple firmly in desktop publishing market. Status as market share leader and innovator was lost in the late 1980s after Jobs left the company. Apple Computer – Innovation at Work Case Study Firm Recovery Steve Jobs returns in 1997 and revitalizes Apple by first launching the iMac. The Mac OS X next breaks ground and acts as a launching pad for a new generation of computers and software products. iPod and iTunes change the face of music and are the hit of the decade. 8- Copyright 2007, Prentice . | Chapter Eight New-Product Development and Product Life-Cycle Strategies Explain how companies find and develop new-product ideas. List and define the steps in the new-product development process. Describe the stages of the product life cycle. Describe how marketing strategies change during the product’s life cycle. 8- Copyright 2007, Prentice Hall, Inc. Firm History Steve Jobs’s creativity led to innovation in user friendliness of computers. LazerWriters and the Macintosh established Apple firmly in desktop publishing market. Status as market share leader and innovator was lost in the late 1980s after Jobs left the company. Apple Computer – Innovation at Work Case Study Firm Recovery Steve Jobs returns in 1997 and revitalizes Apple by first launching the iMac. The Mac OS X next breaks ground and acts as a launching pad for a new generation of computers and software products. iPod and iTunes change the face of music and are the hit of the decade. 8- Copyright 2007, Prentice Hall, Inc. New-Product Development Strategy Strategies for obtaining new-product ideas: Acquisition of companies, patents, licenses New product development, product improvements and modifications 8- Copyright 2007, Prentice Hall, Inc. New-Product Failures Only 10% of new consumer products are still on the market and profitable after 3 years. Industrial products failure rate as high as 30%. Why do products fail? Overestimation of market size Design problems Incorrectly positioned, priced, or advertised Pushed despite poor marketing research findings Development costs Competition 8- Copyright 2007, Prentice Hall, Inc. Major Stages in New-Product Development Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Test marketing Commercialization 8- Copyright 2007, Prentice Hall, Inc. Idea Generation Internal sources: Company employees at all levels External sources: Customers Competitors Distributors .
