A product is a UTILISATION integrated to the EXPECTATION to the market.

It is a generally said that 90% of the products we use today didnt existed in their current form five years ago. Similarly, 90% of the products we will be using five years from now do not exist currently.

New-product strategy development

Idea Generation

Screening and Evaluation

Market Testing

Development

REV

Business Analysis

Commercialization

Stages in NPD

A companys positioning and differentiation strategy must change as the product, market, and competitors change over the product life cycle (PLC)
i.

Products have a limited life.

ii.

iii. iv.

Products sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller. Profits rise and fall at different stages of the PLC.
Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stages.

Product life cycle is a Concept. It is the course of a products sales and profits over the time. Product life cycle(PLC) deals with the life of a product in the market with respect to business or commercial costs and sales measures.

 Product has a Limited Life and passes through different stages with different values and Parameters. Understand that profits have a predictable pattern. In the early stages, focus is on product Promotion and later on brand Promotion. Market segmentation is done in maturity stage to maintain strong core customer base.

Time

Time

Rapidskimming strategy

Slowskimming strategy

Rapidpenetration strategy

Slowpenetration strategy

Characteristics & Objectives of Marketers

Sales Low

Costs
Profits Risks Marketing Objectives

High cost per customer

Negative or Meager Very High Create product awareness and trial

Characteristics, Objectives, & Strategies of Marketers

Product Offer a basic product Use cost-plus formula Build selective distribution Heavy to entice product trial Innovators for these products

Price
Distribution Promotion Customers

Marketing Mix of Introduction Stage

In this stage a product should be in a basic form Product

as this is the first stage.

Branding and quality level is established

Product

Place

Mix
Promotion

Price

The no Tension Bike. Features Clutch free gearshift

NB Minimus is a barefoot-inspired line of shoes created specifically for runners seeking a truly minimalist experience

For a stress-free, foolproof interior painting experience, complete with the pre-selected 8 unique color combinations.

The Pop Up Bowl is sure to be a revolutionary product that pushes the snack food industry to reconsider packaging as vital to product differentiation.

Marketing Mix of Introduction Stage

Price Price skimming may be used if the product is a

new development .

Low prices encourage more people to discover the new product.

Product

Place

Mix
Promotion

Price

Preethi Mixer Grinder - Magic

750 Watts Chip'n Salad maker with Life long Free service.

Vodafone Webbox Vodafone launched Webbox, an internet-enabled keyboard intended to turn a regular TV into an internet portal.

Flora Cuisine It's a healthy blend of sunflower, linseed and rapeseed oils with a deliciously mild taste.

Airtel 3G Experience airtel internet on 3G, wherever you are

Marketing Mix of Introduction Stage

Promotion is mainly aimed at innovators. Promotion

Informative advertising is used until the product becomes known.

Product

Place

Mix
Promotion

Price

Tide Redefines Laundry Detergent Packaging with New Pods

These highly concentrated tablets two times more concentrated than the regular Tide liquid have three chambers of detergent inside a plastic film that dissolves in cold water.

AXE Uses Social Media to Build Buzz

The product is effective for crew cut styles protecting the scalp from the sun, while keeping hair soft and touchable

Lakme Pure Defense

Detoxifying Facial Wash and Serum With powerful antioxidants with complete anti-pollution system

Kelloggs Crunchy Nut Cereal Launch Targets Males, Uses QR Codes to Spur Engagement

Kelloggs is targeting a young male adult audience by sending the message that cereal isnt just for breakfast.

Marketing Mix of Introduction Stage

Place Initially selective placement is done that is limited product availability in few outlets.

Product

Place

Mix
Promotion

Price

Personalize Your Water with MiO and Transform Plain H2O into a Flavorful Beverage
Personalization is a popular trend among consumers, so what could be better than instantly mixing your own drink just the way you like it?

The concept of a 2-in-1 flavored candy product gives UP2U Gum the innovation advantage is its emphasis on the role of the consumer a decision-maker, stepping up to make his or her own choice.

frappuccino

'frozen' and 'cappuccino'.

Range Rover Evoque Campaign Following the trend of stylized, smaller vehicles like the Mini wagon and Nissan Juke, the Range Rover is an SUV that provides an attractive, more fuel efficient option at a time when gas prices are rising precipitously.

Characteristics, Objectives, & Strategies of Marketers

Sales Costs Profits Marketing Objectives

Rapidly rising Average cost per customer Rising Maximize Market Share

Characteristics, Objectives, & Strategies of Marketers

Product Price Distribution Promotion Customers

Offer extension, service, warranty Rationalising Build intensive distribution

Reduce to take advantage of demand

They are early adopters

Marketing Mix of Growth Stage

Company improves the product quality
Product

additional features and support services may be added to the product (Warranties) Changes made acc to customer needs
Product

Place

Mix
Promotion

Price

Hungry Kya?

"The Best a Man Can Get"

'Naya Knorr Soup, Asli Sabzion Ka Zadoo'

Kuch To Hua Hai

Next is what

Marketing Mix of Growth Stage

Price Price should be such that it can penetrate market.

Price is reduced a little due to the entry of the competitors.

Product

Place

Mix
Promotion

Price

Is se sasta aur Achha kahin nehi

Its Nothing Like Anything

Now You Can

Best Domestic Low-cost carrier

I am Lovin it

Marketing Mix of Growth Stage

Advertising is now more focused on brand Promotion

building.

A shift from product awareness advertising to persuasive advertising is undertaken to encourage brand loyalty.
Product

Place

Mix
Promotion

Price

What an Idea Sir Ji !

RACING INSTINCT

 Think

hatke

Marketing Mix of Growth Stage

Strategy should be to build an intensive distribution Place

channel so that product can cater to increasing demand easily. Its coverage should increase
Product

Place

Mix
Promotion

Price

"Growth Through Value Creation"

A lot can happen over coffee

Tupperware shows the world how to party.

Characteristics, Objectives, & Strategies of Marketers

Sales Costs Profits Marketing Objectives Peak Low cost per customer High Maximize profits while defending market share

Characteristics, Objectives, & Strategies of Marketers

Product Price Distribution Promotion Diversify brands and models Match or best competitors Build more intensive distribution Increase to encourage brand Adoption

2 things you can do

Market Modification

Product Modification

To prevent the product going into decline, Companies reposition their product thus modifying their target market. They look for new consumers by changing the product so it has new users - and then new customers.

To prevent the product going into decline Companies modify the product. Adding new features, flavors, variety of models, Packaging and ease of use will change the consumer reaction , creating more demand, therefore attracting more Customers. Examples:

Marketing Mix of Maturity Stage

Product Marketer needs to diversify brand and product

item so that customer buys more.

This can be done by providing various varieties of product item.

Product

Place

Mix
Promotion

Price

Game on. And on. And on

The Power of Dreams

My Pepsi My Way

Be what's next

Marketing Mix of Maturity Stage

Price It has to be competitive to match the price offered

by the other companies.

Product

Place

Mix
Promotion

Price

Yours is Here

Marketing Mix of Maturity Stage

Place Marketer should look at those places that have

remained undiscovered.

Distribution becomes more intensive & incentives may be offered to encourage preference over competing products.
Product

Place

Mix
Promotion

Price

Made for each other

Marketing Mix of Maturity Stage

Promotion Marketer needs to stress on brand differences and

product differentiation.

Companies involve in fierce persuasive advertising battle. Sales promotion tools like premiums, discounts etc
Product

Place

Mix
Promotion

Price

Characteristics, Objectives, & Strategies of Marketers

Sales Costs Profits Marketing Objectives

Declining Low cost per customer Declining Reduce expenses and milk the brand

Characteristics, Objectives, & Strategies of Marketers

Product Price Distribution Promotion

Phase out weak items Cut prices Selective: phase out unprofitable outlets Reduce to minimum level

Marketing Mix of Decline Stage

Product Phase out the weaker product and concentrate on

strong product.

Maintain the product by adding new features & finding new uses.

Product

Place

Mix
Promotion

Price

Marketing Mix of Decline Stage

Price Price of the product should be reduced to increase

the sales.

Product

Place

Mix
Promotion

Price

Marketing Mix of Decline Stage

Promotion It should be just sufficient to retain the

remaining users as one cannot capture new customers at this stage.

Product

Place

Mix
Promotion

Price

Marketing Mix of Decline Stage

Place Concentrate only on those distribution channels

which are still showing sales.

All other channels should be phased out.

Product

Place

Mix
Promotion

Price

Style

expression appearing in a field of human endeavor. Styles appear in homes, clothing, art etc.

Style is a basic and distinctive mode of

Fashion

style in a given field. Fashion pass through four stages: Distinctiveness, emulation, mass fashion, decline.

Fashion is a currently accepted or popular

Fads

view , are adopted with great zeal, peak early, and decline very fast.

Fads are fashions that comes quickly into public

iPod Classic (Oct 2002)

iPod Touch (Sept 2007) iPod Nano (Sept 2005)

iPod Shuffle (Jan 2005)

1G Classic (2002) Mechanical scroll wheel Capacity : 5 to10 GB.

2G Classic (2003) Touch sensitive wheel Capacity : 10to20 GB.

3G Classic (2004) All-touch interface Music match support Capacity : 10, 15, 20, 30, 40 GB.

4G Classic Photo 2005 Color screen and picture viewing Capacity : 20,30, 40, 60 GB.

5G Classic (2006) Larger screen with video playback. Capacity : 30, 60, 80 GB.

6G Classic (2008) Introduced the "Classic" suffix New interface Capacity : 80, 120, 160 GB.

1G Mini (2004) New smaller model, available in 5 colors. Introduced the "Click Wheel. Capacity : 4 GB

2G Mini (2005) Longer battery life. Click Wheel lettering matched body color. Capacity : 4, 6GB

1G Nano (2005) Used flash memory Color screen for picture viewing Capacity : 1,2,4 GB.

2G Nano (2007) Anodized aluminum casing and 6 colors available Capacity : 2, 4, 8 GB.

3G Nano (2008) 2" QVGA screen New interface Video capability Capacity : 4, 8 GB.

4G Nano 5G Nano (2009) (2010) Aluminum Included a enclosure video with 9 color camera Acceleromet FM radio er for shake and speaker Capacity : and 8, 16 GB. horizontal viewing Capacity : 4,8,16 GB

6G Nano (2011) Included multi-touch screen Video playback, speakers and camera removed Capacity : 8, 16 GB

1G Shuffle (2005) New entrylevel model Uses flash memory and has no screen Capacity : 512 MB & 1 GB

2G Shuffle (2007) Smaller clip design Capacity : 1, 2 GB

3G Shuffle (2009) Controls relocated to right ear bud cable Capacity : 2, 4 GB

4G Shuffle (2011) Controls returned to the body of the iPod Features Voice Over Capacity : 2 GB

1G Touch (2007) First iPod with Wi-Fi & Multi-touch interface. Safari browser & wireless access to the iTunes Store and YouTube Capacity : 8, 16, 32 GB

2G & 3G Shuffle (2007) Bluetooth support added & built-in speaker added Capacity : 8, 16, 32, 64 GB

4G Shuffle (2010) Two cameras for Face Time and HD video recording Capacity : 8, 32, 64 GB

Product: A great pocket computer. Music, movies, games, apps at fingertips. Price: 8GB : $249; 32GB: $319; 64GB: $429 Promotion: Advertisement on TV, billboards, magazines. Focus on numerous applications. Place: Online, Apple Store, Vodafone Store, Airtel Stores, Amazon.