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MC 606 Chapter 9 - 30433
MC 606 Chapter 9 - 30433
Chapter 9- slide 1
New-Product Development and
Product Life-Cycle Strategies
Topic Outline
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Copyright © 2010 Pearson Education, Inc.
Chapter 9- slide 4
Publishing as Prentice Hall
New-Product Development
Reasons for new product failure
• Sales increase
• New competitors enter the market
• Price stability or decline to increase volume
• Consumer education
• Profits increase
• Promotion and manufacturing costs gain
economies of scale
Copyright © 2010 Pearson Education, Inc.
Chapter 9- slide 28
Publishing as Prentice Hall
Product Life-Cycle Strategies
Maturity Stage
• Slowdown in sales
• Many suppliers
• Substitute products
• Overcapacity leads to competition
• Increased promotion and R&D to support
sales and profits
• Market modifying
• Product
modifying
• Marketing mix
modifying
Costs
Profits
Customers
Competitors
Marketing Objectives
Marketing Objectives
Create Growing Maximize Reduce
Product number profit while expenditure
awareness defending and milk the
and trialInc.
Copyright © 2010 Pearson Education, market share brand
Chapter 9- slide 34
Publishing as Prentice Hall
Introduction Growth Maturity Decline
Marketing Create Product Growing number Maximize profit Reduce
Objectives awareness and while defending expenditure and
trial market share milk the brand
Strategies
Product
Price
Distribution
Advertising
Sales
Promotion
Strategies
Product Offer a basic Offer product Diversify brand Phase out weak
product extensions, and models items
service, warranty