Professional Documents
Culture Documents
Pogo
Pogo
Pogo
Sommers Barnes
Ninth Canadian Edition
Presentation by
Chapter Goals
To gain an understanding of: The meaning of total product and new product Classification of business and consumer products and its relevance to marketing planning Product innovation The product-development process When to add new products to a product line The adoption and diffusion process for products Organizational structures for product planning and development
Copyright 2001 McGraw-Hill Ryerson Limited 9-2
What is a Product?
it is more than physical products; includes services, places, persons, and ideas it is easy to visualize the products of Esso, but more difficult to describe those of the Toronto Symphony, UNICEF, or the Salvation Army some products are sold only to consumers, while others are sold to organizations whether a product is a consumer product or a business product depends on how it is used
Copyright 2001 McGraw-Hill Ryerson Limited
9-3
Price
Colour
Brand
Packaging
9-4
Innovation is Required
Products go through life cycles-- you need new ones coming on stream. Profits highest when products new. Consumers more selective: they look carefully at each purchase. Also a little jaded. High failure rates in the 75% range. Leads to new products: Innovative= truly unique Improved, with valuable new benefits Imitative, another me too product.
Copyright 2001 McGraw-Hill Ryerson Limited 9-7
5. Market Tests
6. Commercialization
9 - 10
9-7
Defend market Introduce addition to share existing produce line/ revise existing product Strengthen Introduce a really reputation as new product - not just an extension of an innovator an existing product
Copyright 2001 McGraw-Hill Ryerson Limited
Adoption-Diffusion Process
different new products are adopted by consumers at different rates the individual consumer goes through certain stages before adopting a new product marketers must be interested in first creating awareness, then interest, then trial, before the consumer is considered an adopter some people are genuine innovators, while others wait and try later; some never adopt
Copyright 2001 McGraw-Hill Ryerson Limited 9 - 14
9 - 15
Adopter Categories
Researchers have identified five categories of individual adopters for new products: Innovators 3% of the market. Early adopters 13% of the market. Early majority 34% of the market. Late majority 34% of the market. Laggards 16% of the market. In addition, some individuals nonadopters never accept the innovation.
Copyright 2001 McGraw-Hill Ryerson Limited 9 - 17
9 - 19