My Presentation is shows what is product and brand and Marketing in New Product Development.

1. Project Submitted on
“Product Decisions and Marketing’s
Role in New Product Development”
By
Sagar Sharma
(Bachelor of Business Administration 3rd Year)
106/10 civil lines,
Ajmer 305001
Website: www.dezyneecole.com

2. Objectives
• Categorize products by type and understand product mix
decisions.
• Discuss the importance of branding, packaging, and labeling.
• Understand growth strategies.
• Learn to evaluate product development success.
• Identify the actives for product development success.
• Learn methods for understanding customer needs.

3. What is Product ?
• Products are the set of features, functions, and benefits that customers
purchase
Consumer Products
Convenience
Shopping
Specialty
Unsought
Business-to-Business
Products
Installations
Accessories
Raw Materials
Component Parts/Materials
Supplies
Dr. Rosenbloom

4. Product Mix Decisions
• Product mix - all the products a
company markets
• Product mix width - the number of
product lines a company markets
• Product mix depth - the number of
brands within each product line
Dr. Rosenbloom

5. Branding, Packaging, Labeling Decisions
• Brands - used to simplify choices and reduce purchase risk
for consumers
• Brand equity - marketplace value of a brand based on
reputation and goodwill
Dr. Rosenbloom

6. • Branding strategies
• Individual brand name
strategy
• Proctor and Gamble, General
Mills, etc.

7. Branding, Packaging, Labeling Decisions
• Branding strategies
• Family brand name
strategy
• Coca-Cola, Fischer Price, etc.
Dr. Rosenbloom

8. Branding, Packaging, Labeling Decisions
• Labeling helps customers by:
• Identifying the manufacturer, country of
origin, ingredients
• Reporting expiration dates, content grading
• Explaining product use
• Warning about potential misuse
• Providing care instructions
• Serving as a communications link between
the user, eventual buyers, and the company
Dr. Rosenbloom

9. Product Growth Opportunities
Markets
New
New
Products
Existing
Existing
Market
Penetration
Product Development
Dr. Rosenbloom
Market Development
Product Diversification

10. Marketing in New Product Development
• Successful product development:
Uncover unmet
needs and
problems
Develop
competitively
advantaged
product
Dr. Rosenbloom
Shepherd
products
through a firm

11. Marketing in New Product Development
Uncover unmet
needs and
problems
Shepherd
products through
a firm
Develop
competitively
advantaged
product
Idea generation and screen
Ideation
Gate
1
go
Stage 1
Gate
2
Stage 2
Gate
3
kill
kill
go
recycle
recycle
Stage 3
Gate
4
go
Stage 4
Gate
5
kill
kill
recycle
go
recycle
kill
recycle
Dr. Rosenbloom
go
Stage 5
Review

12. Marketing in New Product Development
Uncover unmet
needs and
problems
Shepherd
products through
a firm
Develop
competitively
advantaged
product
Preliminary investigation
Ideation
Gate
1
go
Stage 1
Gate
2
Stage 2
Gate
3
kill
kill
go
recycle
recycle
Stage 3
Gate
4
go
Stage 4
Gate
5
kill
kill
recycle
go
recycle
kill
recycle
Dr. Rosenbloom
go
Stage 5
Review

13. Marketing in New Product Development
Uncover unmet
needs and
problems
Shepherd
products through
a firm
Develop
competitively
advantaged
product
Detailed investigation
Ideation
Gate
1
go
Stage 1
Gate
2
Stage 2
Gate
3
kill
kill
go
recycle
recycle
Stage 3
Gate
4
go
Stage 4
Gate
5
kill
kill
recycle
go
recycle
kill
recycle
Dr. Rosenbloom
go
Stage 5
Review

14. Marketing in New Product Development
Uncover unmet
needs and
problems
Ideation
Gate
1
go
Stage 1
Gate
2
go
Stage 2
Gate
3
kill
kill
go
recycle
recycle
Stage 3
Gate
4
go
Stage 4
Gate
5
kill
kill
recycle
Shepherd
products through
a firm
Develop
competitively
advantaged
product
recycle
Development
kill
recycle
Dr. Rosenbloom
go
Stage 5
Review

15. Marketing in New Product Development
Uncover unmet
needs and
problems
Ideation
Gate
1
go
Stage 1
Gate
2
go
Stage 2
Gate
3
kill
kill
go
recycle
recycle
Stage 3
Gate
4
go
Stage 4
Gate
5
kill
kill
recycle
Shepherd
products through
a firm
Develop
competitively
advantaged
product
recycle
go
Stage 5
kill
recycle
Testing and validation
Dr. Rosenbloom
Review

16. Marketing in New Product Development
Uncover unmet
needs and
problems
Ideation
Gate
1
go
Stage 1
Gate
2
go
Stage 2
Gate
3
kill
kill
go
recycle
recycle
Stage 3
Gate
4
go
Stage 4
Gate
5
kill
kill
recycle
Shepherd
products through
a firm
Develop
competitively
advantaged
product
recycle
go
Stage 5
Review
kill
recycle
Dr. Rosenbloom
Product launch

17. Marketing in New Product Development
Alternate Process
Idea Generation
Screening
Business Analysis
Development
Testing
Commercialization
Sources of ideas:
sales force
customers
competitors
suppliers
company personnel
retailers
wholesalers
Dr. Rosenbloom

18. Marketing in New Product Development
Alternate Process
Idea Generation
Screening
Business Analysis
Development
Testing
Screening criteria:
company objectives
production capability
marketing capability
product risk
product fit
Commercialization
Dr. Rosenbloom

19. Marketing in New Product Development
Alternate Process
Idea Generation
Screening
Business Analysis
Development
Testing
Business analysis
assessment:
financial budgets
potential market
growth rate
Commercialization
Dr. Rosenbloom

20. Marketing in New Product Development
Alternate Process
Idea Generation
Screening
Business Analysis
Development
Testing
Development activities:
prototype
feasibility testing
preliminary market
strategies
Commercialization
Dr. Rosenbloom

21. Marketing in New Product Development
Alternate Process
Idea Generation
Screening
Business Analysis
Development
Testing
Testing:
consumer testing
test marketing
simulated test
marketing
Commercialization
Dr. Rosenbloom

22. Marketing in New Product Development
Alternate Process
Idea Generation
Screening
Business Analysis
Development
Testing
Commercialization:
full-scale production
full-scale marketing
integration into firm
Commercialization
Dr. Rosenbloom

23. Marketing in New Product
Development
Uncover unmet
needs and
problems
Develop
competitively
advantaged
product
Shepherd
products
through a firm
• NPD project leadership
• Project leaders - most frequent, appointed by upper management with formal
power
• Champions - unofficial, informally influence
• Process owners - build and maintain expertise in NPD, may act in leadership roles
as well
Dr. Rosenbloom

24. Product Life Cycle
Product mode
Price policy
Place
Promotion
Profits
Introduction
New
use skimming or
penetration strategies
rapidly building
distribution network
build general demand
expected loses
Growth
Dr. Rosenbloom
Maturity
Decline

25. Product mode
Price policy
Place Promotion
Profits
Introduction
Differentiated products
maintain stable pricing
policy solidify distribution
channels and network
generate secondary
demand start of profits
Growth
Dr. Rosenbloom
Maturity
Decline

26. Product mode
Price policy
Place
Promotion
Profits
Introduction
Modify product or
product usage price
reduction increase
distribution efforts
concentrate on product
Positioning highest
profits (peak)
Growth
Dr. Rosenbloom
Maturity
Decline

27. Product mode
Price policy
Place
Promotion
Profits
Introduction
Maintain a basic product
maintain pricing or rise
prices limit distribution
efforts cut-back on
advertising and sales
promotions reduced profits
Growth
Dr. Rosenbloom
Maturity
Decline

28. The Product Diffusion Process
Innovators:
First purchasers of a new product
Venturesome, willing to accept risk, socially
aggressive, communicative, and cosmopolitan
2.5%
Innovators
Early
Adopters
Early
Majority
Dr. Rosenbloom
Late
Majority
Laggards

29. The Product Diffusion Process
Early Adopters:
Are the next customers to buy new product
Enjoy leadership, prestige, and respect that early
purchases bring
Tend to be opinion leaders
Adapt new ideas but use discretion
13.5%
Innovators
Early
Adopters
Early
Majority
Dr. Rosenbloom
Late
Majority
Laggards

30. The Product Diffusion Process
Early Majority:
First part of mass market
Outgoing, communicative, and attentive to
information cues
34.0%
Innovators
Early
Adopters
Early
Majority
Dr. Rosenbloom
Late
Majority
Laggards

31. The Product Diffusion Process
Late Majority:
Second part of mass market
Less cosmopolitan and responsive to change
Include lower economic and social brackets, those
past middle age, and skeptics
34.0%
Innovators
Early
Adopters
Early
Majority
Dr. Rosenbloom
Late
Majority
Laggards

32. The Product Diffusion Process
Laggards:
Last to purchase
Price conscious, suspicious of change, low income
and status, tradition bound, and conservative
Often difficult to market to this small group
16.0%
Innovators
Early
Adopters
Early
Majority
Dr. Rosenbloom
Late
Majority
Laggards

33. Determinants of Rate-of-Adoption
Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom
The degree to which
the innovation
appears superior to
previous ideas
Directly related to
adoption rates

34. Determinants of Rate-of-Adoption
The degree to which
innovation is
consistent with the
values and
experiences of
potential adopters
The higher, the
faster the rate-ofadoption
Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom

35. Determinants of Rate-of-Adoption
Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom
The relative
difficulty
understanding the
innovation
In most cases, the
more difficult, the
longer it will take to
gain general
acceptance

36. Determinants of Rate-of-Adoption
Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom
The degree to which
the innovation can
be tried on a limited
basis
First adopters face
financial loss and
ridicule from others
lessened by limited
trials

37. Determinants of Rate-of-Adoption
Relative Advantage
Compatibility
Complexity
Triability
Observability
Dr. Rosenbloom
The degree to which
the results of using
the product are
observable to others
Tangible superiority
will increase the
adoption rate

38. Thank
You