slide1
Download
Skip this Video
Download Presentation
DEVELOPING NEW PRODUCTS AND SERVICES

Loading in 2 Seconds...

play fullscreen
1 / 33

Chapter 10 - PowerPoint PPT Presentation


  • 181 Views
  • Uploaded on

C HAPTER. DEVELOPING NEW PRODUCTS AND SERVICES. Product Item. A specific version of an organization’s products. Product Line. A group of closely-related product items. Product Mix. All products that an organization sells. Product Items, Lines, and Mixes. (SKU).

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Chapter 10' - Philip


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

CHAPTER

DEVELOPING NEW PRODUCTS AND SERVICES

slide2

Product Item

A specific version of an organization’s products.

Product Line

A group of closely-related product items.

Product Mix

All products that an organization sells.

Product Items, Lines, and Mixes

(SKU)

Each has a unique number and bar code

slide4

Classifying Products

  • Type of User
  • Consumer Goods
  • Business Goods
  • Degree of Tangibility
  • Nondurable Good-used up in a few uses
  • Durable Good-lasts over many uses

Examples??

  • Services
slide5

The Characteristics of Services

Services that cannot be touched, seen, tasted, heard, or felt in the same manner as goods.

Intangibility

A characteristic of services that allows them to be produced and consumed simultaneously.

Inseparability

A characteristic of services that makes them less standardized and uniform than goods.

Heterogeneity

A characteristics of services that prevents them from being stored, warehoused, or inventoried.

Perishability

slide6

The Four I’s of Services

  • Intangibility
  • Inseparability
  • Inconsistency
  • Inventory
  • Idle Production Capacity-

like stock out costs and holding costs for goods

THE VARIATIONS OF PRODUCTS

Can be reduced by using commission and part time workers

slide7

A relatively inexpensive item that merits little shopping effort.

Convenience

Product

Shopping

Product

A product that requires comparison shopping, because it is usually more expensive and found in fewer stores.

Specialty

Product

A particular item that consumers

search extensively for and are reluctant to accept substitutes.

A product unknown to the potential buyer or a known product that the buyer does not actively seek.

Unsought

Product

CLASSIFYING GOODS AND SERVICES

slide10

What Is A New Product

  • Functionally Different from Existing Products
  • FTC: Newness = 6 Months or less After Regular Distribution
  • Company: Simply Anything Different
slide12

Reasons for New Product Failures

  • Bad Timing
  • Too Little Market Attractiveness
  • Poor Execution of the Marketing Mix: Name, Price, Promotion, and Distribution
  • No Access to Buyers
  • Insignificant Point of Difference
  • Poor Product Quality
  • Insensitivity to Customer Needs on Critical Factors
slide17

THE NEW-PRODUCT PROCESS-

Idea Generation

  • Customer and Supplier Suggestions
  • Employee and Co-Worker Suggestions
  • Research and Development Breakthroughs
  • Competitive Products
slide18

THE NEW-PRODUCT PROCESS-

Screening and Evaluation

The first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason.

slide19

Demand

Considerations in Business Analysis Stage

Cost

Sales

Profitability

THE NEW-PRODUCT PROCESS-

Business Analysis

  • if positive, build a prototype
slide20

THE NEW-PRODUCT PROCESS-Development

  • Safety Tests
  • “Failure Analysis”
  • Marketing strategy
  • Packaging, branding, labeling
  • Manufacturing feasibility
  • Final government approvals if needed
slide21

THE NEW-PRODUCT PROCESS- Test Marketing

The limited introduction of a product

and a marketing program to determine

the reactions of potential customers

in a market situation.

slide22

When Test Markets Don’t Work

  • Limited time to market
  • Service nature of the item
  • Time to see product benefit is long
  • Number of units produced is small
slide23

Six important U.S. test markets “demographics winner”: Wichita Falls, Texas, metropolitan statistical area

slide24

Ramp Up and Regional Rollouts

  • Product Positioning is marketing’s job here
  • Speed as a Factor in New-Product Success
  • Time to Market- important high tech items
  • Fast Prototyping – do it, try it, fix it
  • Parallel Development – Gantt chart usage

THE NEW-PRODUCT PROCESS-

Commercialization

Most expensive stage

slide26

Product

A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value.

slide27

Product Line

A product line is a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall within a given price range.

slide28

Product Mix

The product mix is the number of product lines offered by a company.

slide29

Consumer Goods

Consumer goods are products purchased by the ultimate consumer.

slide30

Business Goods

Business goods are products that assist directly or indirectly in providing products for resale. Also called as B2B goods, industrial goods, or organizational goods.

slide31

Services

Services are intangible activities or benefits that an organization provides to consumers in exchange for money or something else of value.

slide32

Idle Production Capacity

Idle production capacity occurs when the service provider is available but there is no demand.

slide33

New-Product Process

The new-product process consists of seven stages a firm goes through to identify business opportunities and convert them to a salable good or service.

ad