1 / 19

Fundamentals of Marketing

Chris Banman Fall 2010 471.21 Providence College. Fundamentals of Marketing. Chapter 10. Product Management & New Product Development. Product Life Cycles . 1. Market Introduction 2. Market Growth 3. Market Maturity 4. Sales Decline. Market Introduction. Sales low Cost High

pello
Download Presentation

Fundamentals of Marketing

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chris Banman Fall 2010 471.21 Providence College Fundamentals of Marketing

  2. Chapter 10 Product Management &New Product Development

  3. Product Life Cycles • 1. Market Introduction • 2. Market Growth • 3. Market Maturity • 4. Sales Decline

  4. Market Introduction • Sales low • Cost High • Invest $ = future profits? • Bombardier, 1942 • Examples?

  5. Market Growth • Fast growth in sales • Competitors enter market • Some copy, some improve product • Consumer price sensitive increase • Bombardier listed in 1969 • Competitor analysis essential • Examples?

  6. Market Maturity • Sales level off • Competition stiff • Promotional cost increase + competitor price decrease= profit decrease • Differentiation (Ski-Doo - reverse gear) • High price sensitivity • Video game market

  7. Sales decline • New products replace old • Vigorous price competition • Strong brands may remain • Sony Walkman • Examples?

  8. Adoption Process • Innovators • Early Adopters • Early Majority • Late Majority • Laggards or nonadopters

  9. Fashion versus Fad Fashion Fad • Currently accepted or popular style • Short life cycles • in one season, out the next • Example – tie width • Idea that is fashionable only to certain groups • Short lived • Example - Christmas toys • Other examples?

  10. The Adoption Curve

  11. Innovators • 3-5% • 1st to adopt • Risktakers • Mobile • Research • Example – text messaging

  12. Early Adopters • 10-15% • Respected by peers • Often opinion leaders • Word-of-mouth promotion • Internet valuable tool • Examples?

  13. Early Majority • 34% • Avoid risk • Contact with mass media • Contact with salespeople • Examples?

  14. Late Majority • 34% • Cautious and “set in their ways” • Typically older • Rely on strong social pressure from own peer group • Little use of marketing sources

  15. Laggards or nonadopters • 5-16% • Prefer old ways • Very suspicious • Older, less educated • Status quo • Main source of information = other laggards

  16. Ethical Issues • New product delay • Planned Obsolescence • Inventory • Replacement parts • Minor variations

  17. New Product Development

  18. Key Terms • product life cycle • market introduction • market growth • market maturity • sales decline • fashion • fad • adoption curve • innovators • early adopters • early majority • laggards • nonadopters • new product • product liability • concept testing • test marketing • product managers • brand managers

  19. Case Discussion Paper Products Inc. • Topics • Key issues • Root causes • Alternatives • Recommendation • Implementation

More Related