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New Product Development and Product Life-Cycle Strategies

www.kafebisnis2010.wordpress.com. New Product Development and Product Life-Cycle Strategies . New Product Development Process. Idea Generation and Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization.

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New Product Development and Product Life-Cycle Strategies

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  1. www.kafebisnis2010.wordpress.com New Product Development and Product Life-Cycle Strategies

  2. New Product Development Process • Idea Generation and Screening • Concept Development and Testing • Marketing Strategy • Business Analysis • Product Development • Test Marketing • Commercialization

  3. New Product Development ProcessStep 1. Idea Generation Systematic Search for New Product Ideas Internal sources Customers Competitors Distributors Suppliers

  4. New Product Development ProcessStep 2. Idea Screening • Process to spot good ideas and drop poor ones • Criteria • Market Size • Product Price • Development Time & Costs • Manufacturing Costs • Rate of Return

  5. 1. Develop Product Ideas into Alternative Product Concepts New Product Development ProcessStep 3. Concept Development & Testing 2. Concept Testing - Test the Product Concepts with Groups of Target Customers 3. Choose the Best One

  6. New Product Development ProcessStep 4. Marketing Strategy Development Marketing Strategy Statement Formulation Part One - Overall: Target Market Planned Product Positioning Sales & Profit Goals Market Share Part Two - Short-Term: Product’s Planned Price Distribution Marketing Budget Part Three - Long-Term: Sales & Profit Goals Marketing Mix Strategy

  7. Business Analysis Review of Product Sales, Costs, and Profits Projections to See if They Meet Company Objectives New Product Development ProcessStep 5. Business Analysis Step 6. Product Development If No, Eliminate Product Concept If Yes, Move to Product Development

  8. New Product Development ProcessStep 7. Test Marketing Controlled Test Market A few stores that have agreed to carry new products for a fee. Standard Test Market Full marketing campaign in a small number of representative cities. Simulated Test Market Test in a simulated shopping environment to a sample of consumers.

  9. Product Life Cycle

  10. Product Life Cycle – shows the stages that products go through from development to withdrawal from the market

  11. 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% TANDA TANYA BINTANG Tingkat Pertumbuhan Pasar ANJING SAPI PERAH 4x 2x 1,5x 1x 0,5x 0,4x 0,3x 0,2x 0,1x PangsaPasarRelatif Model BCG

  12. Product Life Cycle (PLC) • Each product may have a different life cycle • PLC determines revenue earned • Contributes to strategic marketing planning • May help the firm to identify when a product needs support, redesign, withdrawal, etc. • May help in new product development planning • May help in forecasting and managing cash flow

  13. Causes of New Product Failures • Overestimation of Market Size • Product Design Problems • Product Incorrectly Positioned, Priced or Advertised • Costs of Product Development • Competitive Actions To create successful new products, the company must: • understand it’s customers, markets and competitors • develop products that deliver superior value to customers.

  14. Introduction Stage of the PLC Sales Low sales Costs High cost per customer Profits Negative Create product awareness and trial Marketing Objectives Product Offer a basic product Price Use cost-plus Distribution Build selective distribution Advertising Build product awareness among early adopters and dealers

  15. Growth Stage of the PLC Sales Rapidly rising sales Costs Average cost per customer Profits Rising profits Marketing Objectives Maximize market share Product Offer product extensions, service, warranty Price Price to penetrate market Distribution Build intensive distribution Advertising Build awareness and interest in the mass market

  16. Maturity Stage of the PLC Sales Peak sales Costs Low cost per customer Profits High profits Marketing Objectives Maximize profit while defending market share Product Diversify brand and models Price Price to match or best competitors Distribution Build more intensive distribution Advertising Stress brand differences and benefits

  17. Decline Stage of the PLC Sales Declining sales Costs Low cost per customer Profits Declining profits Marketing Objectives Reduce expenditure and milk the brand Product Phase out weak items Price Cut price Distribution Go selective: phase out unprofitable outlets Advertising Reduce to level needed to retain hard-core loyal customers

  18. TujuanPemasaran

  19. Strategi

  20. Strategi (lanjutan)

  21. Siklus hidup produk(product life cycle – PLC) adalah perjalanan penjualan dari suatu produk dalam masa hidupnya. Siklus hidup produk merupakan suatu konsep penting yang memberikan pemahaman tentang dinamika kompetitif suatu produk.

  22. Kesimpulan • Konsep siklus hidup produk sangat baik digunakan untuk menginterpretasikan dinamika produk dan pasar. • Kelemahan dari konsep ini, yaitu kurang dapat digunakan sebagai alat prediksi karena sejarah penjualan menunjukkan pola yang beragam, dan tahap-tahapnya itu berbeda durasinya. • Selain itu, perusahaan juga menemui kesulitan untuk mengetahui di tahap apa suatu produk sedang berada.

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