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There are two reasons why new sports

products are critical to success:
I. New products are necessary to keep up
with the changing consumer trends,
lifestyles and taste.
II. New products must be introduced
continually to maintain business and
long-term growth. One of the key
considerations for any sports
organization is to continually improve its
products it offers to consumers.
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1. Newness from the Organization’s
Perspective
a. New-to-the-world Products
b. New product category entry
c. Product line extension
d. Product improvement
e. Repositioning
2. Newness from the Consumer’s
Perspective
1. Discontinuous innovations
2. Dynamically continuous innovations
3. Continuous innovations
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I. New-To-The-World Products
› Products new to the organization that does
selling and to the consumers who purchase or
use the product.

II. New Product Category Entry

› Sports products that are known worldwide but
new to the organization. Example: Nike’s recent
venture into sports equipment is a new product
category entry for the shoe and apparel market
leader.

III. Product Line Extension

› Refers to new products being added to as an
existing product line. 4
IV. Product Improvement
› Current products that have modified and
improved, such as the new shoe addition to
the Jordan brand called Jordan 15 (through
R & D).

V. Repositioning
› Refer as changing the image or perception
of the sports entity in the minds of consumers
in the target.

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1. Discontinuous Innovations
› Quite similar to new-to-world products is that
they present the most innovative products.
› The products are so new and original that
they require major learning from the
customer’s viewpoint and new consumption
and usage patterns.
› Example: the extreme sports such as sky
surfing, bungee jumping, etc.

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2. Dynamically Continuous Innovations
› Refer to new products that represent changes
and improvements but do not strikingly change
buying and usage patterns.
› Example: improvement on the golf club head –
using titanium. Improve distance but do not
change our swing.

3. Continuous Innovations
› Represent an ongoing common place change
such as the minor alteration of a product or the
introduction of an imitation product. Has the
least disruptive influence on the patterns of
usage and consumer behavior.
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 Regardless of how new products are
classified, organizations are constantly
searching for the next innovation that will
help the firm achieve its financial
objectives.

 Rather than leave this to chance, many

organizations use a systematic approach
called the New Product Development
Process.
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i. Idea Generation
› Consider all ideas for new products from sources
such as employees, competitors and consumers.
› Marketing research play a valuable role in
anticipating the needs of consumers.

ii. Idea Screening

› All the new products ideas are evaluated and
the poor ones are weeded out.
› An important consideration in the ideas
screening process is to examine the ‘fit’ of the
product with the organization’s goals and
consumers’ demand.
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iii. Analysis of the Product Concept or
Potential
› As poor ideas are eliminate, firm begins to
analyze new products in terms of how they
‘fit’ with the existing products and how
consumers respond to these new products.

iv. Developing The Sports Product

› Here, concept tests are use to gauge the
product’s strengths and weaknesses as well
as consumers intent to use the new product.
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v. Test Marketing
› Allows the sports organization to determine consumer response to
the product and also provides information that may direct the
entire marketing strategy. The three types of test markets usually
conducted are:
 Standardized test market
 Controlled test market
 Simulated test market

vi. Commercialization
› Which new product is formally introduces in the marketplace.
› Success of the product depend on several factors such as the
product considerations ( eg. Trialability and relative advantages )
and other Marketing Mix Variable, eg. pricing and marketing
environments such as competitors.
› As a new product reaches commercialization it moves through a
series of four stages known as the product life cycle (PLC).

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 PLC is a concept that provides a way to
trace the stages of a product’s
acceptance, from its introduction (birth)
to its decline (death).

 Extending the PLC:

› Change product
› Change product use
› Change product image
› Change product positioning

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 Full-scale launch of new products
 High Failure Rates
 Little Competition
 Frequent Product Modification
 Limited Distribution
 High Marketing And Production
 Negative Profits
 Promotion Focuses On Awareness And
Information
 Intensive Personal Selling To Channels
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 Offered in more sizes, flavors, colours,
options
 Increasing Rate Of Sales
 Entrance Of Competitors
 Market Consolidation
 Initial Healthy Profits
 Promotion Emphasizes Brand Ads
 Goal Is Wider Distribution
 Prices Normally Fall
 Development Costs Are Recovered
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 Many consumer products are in maturity
 Declining Sales Growth
 Saturated Markets
 Extending Product Line
 Stylistic Product Changes
 Heavy Promotions To Dealers And
Consumers
 Marginal competitors Drop Out
 Prices And Profits Fall
 Niche Marketers Emerge
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 Rate of decline depends on change in
tastes or adoption of substitute products
 Long run drop in sales
 Large inventories of unsold items
 Eliminating of all nonessential marketing
expenses

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