Product Development and Product Life-Cycle Strategies
New-Product Development and Product Life-Cycle Strategies
Based on: Philip Kotler et al., Principles of Marketing
International Marketing
Prof. Dr. Thomas Laukamm
Objectives
- Understand how companies find and develop newproduct ideas. - Learn the steps in the new-product development process. - Know the stages of the product life cycle. - Understand how marketing strategies change during the product’s life cycle.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
1
Definition
- New Product Development
+ Development of original products, product improvements, product modifications, and new brands through the firm’s own R & D efforts.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
2
New Product Development Strategy
- New products can be obtained via acquisition or development. - New products suffer from high failure rates. - Several reasons account for failure.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
3
New Product Development Strategy
- New Product Development Process: + Stage 1: Idea Generation
• Internal idea sources:
R&D
• External idea sources:
Customers, competitors, distributors, suppliers
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
4
New Product Development Strategy
- New Product Development Process:
+ Stage 2: Idea Screening
• Product development costs increase substantially in later stages. • Ideas are evaluated against criteria; most are eliminated.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
5
New Product Development Strategy
- New Product Development Process:
+ Stage 3: Concept Development and Testing
• Product concepts provide detailed versions of new product ideas. • Concept tests ask target consumers to evaluate product concepts.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
6
Based on: Philip Kotler et al., Principles of Marketing
International Marketing
Prof. Dr. Thomas Laukamm
Objectives
- Understand how companies find and develop newproduct ideas. - Learn the steps in the new-product development process. - Know the stages of the product life cycle. - Understand how marketing strategies change during the product’s life cycle.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
1
Definition
- New Product Development
+ Development of original products, product improvements, product modifications, and new brands through the firm’s own R & D efforts.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
2
New Product Development Strategy
- New products can be obtained via acquisition or development. - New products suffer from high failure rates. - Several reasons account for failure.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
3
New Product Development Strategy
- New Product Development Process: + Stage 1: Idea Generation
• Internal idea sources:
R&D
• External idea sources:
Customers, competitors, distributors, suppliers
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
4
New Product Development Strategy
- New Product Development Process:
+ Stage 2: Idea Screening
• Product development costs increase substantially in later stages. • Ideas are evaluated against criteria; most are eliminated.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
5
New Product Development Strategy
- New Product Development Process:
+ Stage 3: Concept Development and Testing
• Product concepts provide detailed versions of new product ideas. • Concept tests ask target consumers to evaluate product concepts.
Fach, Dozent, Semester International Marketing
Prof. Dr. Thomas Laukamm
6