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Navigating the New Product Development Life Cycle: Strategies for Success

This guide explores the intricacies of conceiving, developing, and managing new products, from initial innovation to market introduction, growth, maturity, and decline. It discusses how minor and major modifications can impact consumer perception and product viability. Learn about the significance of adapting to evolving consumer preferences, the high failure rates in the market, and strategies to effectively manage the product life cycle. Understand the stages of product development, diffusion processes, and effective marketing strategies to extend product longevity, ensuring sustained relevance in a competitive landscape.

joseph-atkinson
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Navigating the New Product Development Life Cycle: Strategies for Success

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Presentation Transcript

  1. Conceiving, developing, and managing new products

  2. New product • A modification of an existing product or an innovation the consumer perceives as meaningful

  3. Types of New products • Modifications • Minor innovations • Major innovations • Significantly different

  4. Product life cycle

  5. Product Innovation • Importance • New products cause old products to become obsolete • Consumer tastes and preferences change • Competition copies • All products are mortal • High failure rate • Reasons for high failure rate • Classifications of failure

  6. Stages in the new product development process

  7. Managing products throughout the product life cycle

  8. The Introduction Stage • Also called “pioneering” stage • Most expensive and risky • Truly innovative – build primary demand • Product strategies • JUMP IN! Pioneer advantage • Wait until growth stage • Pricing strategies • Market skimming • Market penetration

  9. Growth Stage • Sales and profits rise • Product is adopted by individual consumers • Factors Influencing adoption • Diffusion is the process by which an innovation is spread through a social system • Competition enters the market • Profits peak

  10. The diffusion process • Innovators (2.5-3%) • Early adopters (13%) • Early majority (34%) • Late majority (34%) • Laggards (16%)

  11. Maturity • Sales continue to grow, but at a declining rate • Benefits of having a product at the maturity stage • Marketing strategies to extend the maturity stage of the product life cycle

  12. Decline • Reasons • Strategies • Delete a product • Ensure efficiency in marketing and production • Prune unprofitable sizes and models • “Run out” the product

  13. Obsolescence • Functional • Style

  14. Evaluating the product life-cycle concept • Stages, time span and shape of the product life cycle vary by product • Economy, inflation, and consumer lifestyles may shorten or lengthen a product’s life cycle • A firm may do worse than the average product in the market • A firm may be able to manage the life cycle, or extend it or reverse decline • Firms may engage in a self-fulfilling prophecy

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