Professional Documents
Culture Documents
Module 8 Creating New Products and Services
Module 8 Creating New Products and Services
and
Services
Module 8
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Objectives
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New Product Development
Strategy
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Using the Web to Solicit Product Ideas
Procter and Gamble
To see how P&G solicits ideas from
customers, visit the Procter and
Gamble home page, click on the
Resources and Offers button, then Procter & Gamble
select the Share Your Thoughts listing.
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New Product Development
Strategy
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New Product Development
Strategy
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BusinessNow
Computer modeling
is being used to aid
in product design
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New Product Development
Strategy
Stage 8:
Commercialization
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New Product Development
Strategy
IRI BehaviorScan
provides an in-
market laboratory
for testing new
products and
marketing programs
IRI BehaviorScan
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Simulated Test Markets (STM)
In-Depth
Advantages: Types of STMs:
Reduces risk – capital, ASSESSOR
marketing dollars, BASES
cannibalization MarkeTest
Increases efficiency Merwyn
Maintains security – And others
competitors have less time
to plan counter strategies
Saves the company time
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Simulated Test Markets (STM)
In-Depth
Model Inputs: Model Inputs:
The market's size Price
Copy testing results The proportion of
Advertising budget for the stores carrying the test
test product and product and the
competitors. number of shelf facings
Media schedule, by month.
Consumer promotion, Expected marketing
Trade promotion by costs and margin
month. contribution.
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Simulated Test Markets (STM)
In-Depth
Do‘s & Don’ts of STMs Do‘s & Don’ts of STMs
Be a champion for your Calculate different levels
new product--but be of competitive response.
objective Don't estimate a level of
Choose the proper sample. support in a simulated
Expose people to your market that you would not
product and its advertising maintain nationally.
in a way that best simulates Be very careful in
the real world. estimating all marketing
Use proven research input factors—the more
technology to forecast you guess incorrectly, the
market behavior and sales. less accurate the forecast.
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Sales and Profits
Over A Product’s Life
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Product Life-Cycle
Strategies
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Figure 10-3:
Styles, Fashions, and Fads
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Companies
want their
products to
enjoy a long
life cycle.
Hershey’s
actively
promotes
the fact that
it has been
“unchanged
since 1899”
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Product Life-Cycle
Strategies
Additional marketing
investments can
move a product back
into the growth stage,
as in the case of
Cracker Jack.
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Product Life-Cycle
Strategies
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Product Life-Cycle Strategies
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Product Life-Cycle Strategies
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Product Life-Cycle Strategies
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Discussion Question
Why do
products fail?
See if you can
identify the fatal
flaw in the brands
below and at right.
Ben-Gay Aspirin
Buttermilk Shampoo
Fruit of the Loom
Laundry Detergent
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