With The Name of Almighty Allah, Who Is The Most Beneficent & Merciful

With the name of
Almighty Allah, who is

the most Beneficent &
Merciful
Presentation
Principles of Marketing
Presented To:
Prof. Aisha Ghias

Presented BY :
 Amir Mahmood # 44
 Awais Akmal # 55
 Shoaib Sultan # 57
Topic
New Product Development

& PLC
New product development
The development of original products,
product improvements, product
modification through firms own R & D
department.
Every product go through a life cycle, it born, goes
through several stages and eventually dies then a new
product come that better serve the consumer needs.
Challenges under product life
cycle
Challenge of new product development.
Challenge of product life cycle strategies.
Challenge of new product
development:
The challenge of new product is that, all products

eventually decline and a firm developing new products.
(According to the taste of consumers).
Challenge of product life cycle
strategies:
Challenge of product life cycle

strategies is that, the firm must
adopt its marketing strategies in
the face of changing tastes,
technologies and competition
A firm can obtain new products in the two ways.
 Through the Acquisition

 New product development
Stages in the development of the new
product
 1 Idea generation

 2 Idea screening
 3 Concept development
and testing
 4 Marketing strategy
 5 Business analysis
 6 Product development
 7 Test marketing
 8 Commercialization
Idea Generation
What type of product & mkt?
Company Objectives
Idea Generation
 (i) Internal idea source
 (ii) External idea source.
Internal Idea Sources
 Executives
 Engineers
 Scientists
 Manufacturing staff
 Sale People
 employees
External Source of Idea
 Customers
 Competitors
 Distributors
 Suppliers
 Others
Idea Screening
Screening new product ideas in
order to spot good ideas and drop
poor ones as soon as possible.
Idea Screening
 Reduce number of ideas
 Favorable Ideas( match the company’s
objectives)
 Save future Cost
 target mkt
 Competition
 Manufacturing Cost
 Development time and cost
Concept Development &
Testing
 Concept Development
 Concept Testing
Concept Development
 On the basis of screened ideas make product.
 Imaginary product on the basis of favorable ideas
 An attractive idea must be developed into a product concept.
 What type of product
 What are the feature
 Image of the product
Concept testing
1. Testing new product concepts with a group of target to
find out if the concepts have strong consumer appeal
2. Low direct marketing
3. Feed back from the customer
Product Development
Strategy
Designing an initial marketing strategy for a
new product based on the product Concept.
( A detailed version of the new product idea
stated in meaningful consumer terms)
Marketing Strategy
Development
 Target Market, planned product positioning
and sales, market share and the profit
goals for the first few years
 Product planned price, distribution,
marketing budget for the product
 The planned long rum sale, profit goals,
marketing mix strategy
Business Analysis
 expected costs
 Expected profit for the product
 marketing costs
 R & D, operations costs
 accounting Costs
 finance costs
Product Development
 Physical product
 Jump in investment
 quickly and at budgeted costs
 functional features
 psychological characteristic
Test Marketing
The stage of new product development in which the
product and marketing program are tested in more
realistic mkt setting
Feature of Test MKT
 Cost can be high Advertising

 Competitors gain Advantage Distribution
 It take lot of time Pricing
 It does not give us product Branding
success guarantee
Packaging
Test Marketing
 1 Standard Test Market
 2 Controlled Test Market.
3 Simulated Test Markets
Standard Test Market
 Marketing Campaign
 Consumers & Distributor surveys
 Measure to gauge the product performance
 Forecast National sale and profit
 Product potential problems
 Take very much time
 Competitors can monitor
Commercialization
 Introducing a new into the market
 High cost ( rent, advertising, sale
promotion)
 Launching time
 Place
Organizing for the new Product
 Sequential product Development
 simultaneous product development
 team based development
 collaborative product development
 overlapping the steps in the product development
 Marketing
 Finance
 Design
 Manufacturing
 Legal department
 Supplier companies
 Consumer companies
Sequential PD Development
 It step by step process
 Steps or stages work independently.
 Control risky & complex projects.
 Very slow
Simultaneous product development
 team based development
 collaborative product development
 overlapping the steps in the product
development
Limitations
 In super fast, risky and costly
 Tension & Confusion
 Chances of quality affect
The Product Life Cycle (PLC)
 Product Development
 Introduction Stage
 Growth Stage
 Maturity Stage
 Decline Stage
Introduction
 It takes time
 It sales is low
 Profit is low or negative
 High distribution
 Promotion expenses
Growth Stage
 High sale
 Early Adopter
 Later Buyer
 Profit increase
 Unit cost fall
 Improved quality and feature
Maturity Stage
 Sales growth slow down
 More longer
 Strong challenges to the management
 Competitors, mark down prices
 Increase advertising
 Sales promotion
 More work on R & D
Decline Stage
 Sales slow down
 No profit
Characteristics Introduction Growth Maturity Decline
Sales Low Sale Rapidly Rising Sales Peak Sale Declining Sale
Costs High cost per Avg. cost per Low cost per customer Low cost per
customer customer customer
Profits Negative Rising Profits High Profit Declining Profits
Customers Innovator Early Adopter Middle Majority Laggard
Competitors Few Growing Number Stable no. beginning to Declining No.

decline
Introduction Growth Maturity Decline
Marketing Create Maximize Maximize profit Reduce

Strategies Product market share while defending expenditure
Awareness market share
Strategies Introduction Growth Maturity Decline
Product Offer a Basic Offer product Diversify brands Phase out

Product extensions service, & models weak items
warranty
Price Use Cost Plus Price to penetrate Price to match or Cut Price
market beat competitors
Distributi Build Selective Build Intensive Build More Go Selectiv

on Distribution Distribution Intensive
Distribution
Advertisi Build product Build product Stress brand Reduce to

ng awareness among awareness in the mass Differences and level neede
early adopters market benefits to retain ha
core loyal
Sales Use heavily sales Reduce to take Increase to Reduce To

Promotio promotion to entire advantage of heavy encourage brand minimum
n trail consumer demand Switching level

With The Name of Almighty Allah, Who Is The Most Beneficent & Merciful

Uploaded by

Copyright:

Available Formats

With The Name of Almighty Allah, Who Is The Most Beneficent & Merciful

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

With The Name of Almighty Allah, Who Is The Most Beneficent & Merciful

Uploaded by

Copyright:

Available Formats

With the name of

Almighty Allah, who is

Prof. Aisha Ghias

New Product Development

The challenge of new product is that, all products

Challenge of product life cycle

 Through the Acquisition

 1 Idea generation

 Cost can be high Advertising

Profits Negative Rising Profits High Profit Declining Profits

Customers Innovator Early Adopter Middle Majority Laggard

Competitors Few Growing Number Stable no. beginning to Declining No.

Marketing Create Maximize Maximize profit Reduce

Product Offer a Basic Offer product Diversify brands Phase out

Distributi Build Selective Build Intensive Build More Go Selectiv

Advertisi Build product Build product Stress brand Reduce to

Sales Use heavily sales Reduce to take Increase to Reduce To

You might also like