The Product Lifecycle and New Product Development. Chapter 10. New Product Development. Definition - the development of original products, product improvements, product modifications, and new brands through the firm’s own R&D efforts.
Importance of New Product Development:
Successful new products:
New products fail at a high rate due to:
Generally a five step process:
1. Idea generation
2. Screening of ideas
3. Business analysis
4. Prototype development
The product lifecycle has four stages:
Increase the consumption of the current product.
Look for new users and market segments.
Reposition the brand to appeal to larger or faster-growing segment.
Look for ways to increase usage among present customers.
Modifying the marketing mix.
Improving sales by changing one or more marketing mix elements.
Launch a better ad campaign.
Move into larger market channels (distribution).
Offer new or improved services to buyers.Maturity Stage Strategy
Basic and distinctive mode of expression
Once accepted, popularity will vary over time
A currently accepted or popular style
Gains acceptance, peaks, then declines
Tend to go in cycles with generations
Gain rapid acceptance, peak early, and decline quickly
Tend to attract limited market
Products that are novel and do not address basic needsSpecial Life Cycles