New Product Development - Product Planning and Market Strategies, Marketing Management Video Lecture | Marketing Management - B Com

good day ladies and gentlemen today we
are going to take a look at these stages
of product development now we understand
the difference between innovation and
invention we understand that marketers
use innovations and inventions to create
new products and to make profit it
doesn't matter whether a marketer is
going to use an innovation or an
invention they still need to follow
these prog development stages so please
make sure you have your notes please
make sure you follow these storm
philosophy and sit back and enjoy okay
so what are we going to look at today
well first of all we're going to connect
Proc development back to the four PS and
really trying to establish that
connection next we're going to identify
product what is it what's the difference
between product and service and lastly
we'll take a look at the actual stages
of product development so before we get
into the stages of product development
we need to understand where it falls in
the marketing process basically we don't
begin to develop our product until we've
come up with a conceptual product idea
so the idea of your product how it's
going to be used who is it going to
satisfy so the profile of your target
market as well as who will be your
competitors who do you have to be aware
of
once you figure this out then you move
on to the product and the four PS of our
marketing plan so the first P is product
what should we call it now this is a
product and it fits within the marketing
mix of the four piece
and a product can be a good or service
even an idea which consists of both
tangible things you can touch in
intangible attributes whether it is a
product such as a good or a service or
an idea it's going to satisfy consumers
in some way it's going to satisfy their
needs or their wants and consumers will
exchange money for your product or some
other unit of value and so product
planning or product development are all
about the decision-making involved in
creating this service this good this
idea the tangible and intangible aspects
so all the aspects of development that
we need to recognize is what we will
cover next in the stages of proc
development so a new products are
created because consumers need or want
them there's a gap in the current market
the world doesn't have a product that
exists that will satisfy those needs or
those wants because of this gap
marketers and companies won't develop
products to satisfy this that will fill
this gap so the question that you every
marketer needs to answer why don't I
just create and sell that product if you
can do it then you will do it and
therefore if a product is successful it
will it must have desirable attributes
for the target market it will be unique
and if it is not either of these things
it is doomed to fail so once you've
determined the fact that you need to
create this product you then are going
to answer these questions can you
produce it and can you sell it this is
something that we looked at with a
feasibility study and something that we
will refer to and revisit many times
over in the next following lessons so if
the feasibility study finds that the
idea is worth pursuing and that it is
doable the proc development process
begins this process involves eight
stages and every proc needs to go
through each of these eight stages in
order to then be brought to the market
in order to be sold to consumers so the
stages are as follows idea generation
idea screening concept development
market strategy feasibility analysis
study product design test marketing and
market entry you'll notice that
feasibility analysis is actually not the
first stage because many other stages
precede that however it is always a good
idea to always have in the back of your
mind
whether or not the product will be
feasible so the first stage is all about
idea generation what ideas do you have
what new products do you think could be
successful will these new products be
inventions or innovations whether or not
they are inventions or innovations are
because some point someone generated
these ideas an idea to produce a product
or service that is not currently
available is this first stage so the
idea of a flying car the idea of a iPad
or a tablet device the idea that you can
play video games without using
controller all of these amazing ideas
started at this first stage so the
second stage is all about screening the
idea the very simple fact is that not
all ideas are good ones
case in point new Koch research that if
you want to find out more about that or
Mick Pizza another one
Heinz decided at one point that they
wanted to make their ketchup green and
blue and other colors not great ideas
therefore marketers need to test
consumer reaction to their idea before
they continue oftentimes consumer
reaction is positive and yet the product
still fails so it's not a definite
answer to whether or not you should
produce it but is something that you
need to consider and that the consumer
reaction to your product is something
you need to consider so the idea is
really just to throw around the idea see
what people think get their feedback
make modifications assess whether or not
it's a good idea the third stage is
concept development again not all ideas
are good ones however if you've received
positive feedback then you need to move
along and develop a prototype really the
idea here is that you've identified the
idea the product is a good one that the
market demand exists and that
competition will not prevent you from
being successful if you've answered yes
to these questions then you will develop
a prototype
sample the stage will allow you to see
the actual product how it works and the
target market can then be brought in and
really see how it works and provide
feedback for improvements the best
example of concept development as far as
products are automobiles every single
car goes through the stage and we see
concept cars at auto shows these concept
cars are ideas they've been screened and
they've created clay created clay models
that consumers can really check out and
assess whether or not they like this car
or not now it's time to move on to the
market strategy this is your marketing
strategy how are you going to address
each of the four piece you will define
each of these four PS because you want
to optimally sell your product you want
to make sure that it addresses target
market needs or want as well you will
identify who your primary target market
is in your secondary target market so
you ensure you will reach those
consumers at the same time that you're
developing your market strategy you may
or may not be developing your
feasibility analysis so once you've done
your product design once you've kind of
addressed your four PS or at the same
time you then need to ask various
questions do you have the materials and
labor required to produce this product
do is the price of production going to
be way too high do you have the
distribution channels in place to get
your product to the consumer and what
about promoting your product how will
you do this it will be cost effective
basically again you are answering this
very simple question can you make and
sell this product while making money
doing so again at the same time that
you're doing your feasibility analysis
and your market study you're designing
your product and continuously adding the
consumers feedback and the feasibility
analysis questions and the answers to
those questions into your product design
you're incorporating all this
information what will the product look
like the design will depend on what it
does as well as what the target market
wants so you can't just make a product
that is just simply functional it needs
to satisfy the target markets want and
so once you've addressed your 4 PS you
continuously revisit the feasible
and you continuously address the proc
design its now to go to test marketing
you need to test the acceptance of the
product do consumers like it will they
accept it may they buy it down the road
this occurs by offering the product to a
random sample of your target market this
is something that we look back at in
marketing research the consumer feedback
in these test markets will improve your
venture improve your product and
determine whether the proctor should
officially go to market and if the test
marketing is successful it now moves on
to market entry this is where the
product officially enters the market its
sold to everyone the product life cycle
now begins and will go through those
product lifecycle stages in the
following videos but the life of this
product will be determined by the
consumers by competition and further
product advances and so no matter what
you've done up until this point there's
a lot of unknowns that will influence
your products and you need to be aware
of these ok so the product development
process following these simple steps
eight steps you will hopefully not
guarantee but hopefully improve your
chances for successful products you will
hopefully gather profit from this you
will hopefully compete with the existing
competitors this process however needs
to constantly be revisited you need to
constantly improve your products update
your products stay ahead of your
competitors and so most companies will
continuously revisit this product
development process so this brings us to
our end what makes a successful product
think about the eight stages what do you
think will determine whether or not a
product will be successful what
activities are involved with ideas
screening is it a simple matter of do
you like it or not so think about these
questions make sure your notes are in
order
make sure you summarize them and you've
provided some discussion questions and
that's it that's all that's everything
we'll see you tomorrow