Identify the stages in the product life-cycle. Discuss the strategies that marketers could utilize as the product goes through each stage of the product life cycle.
First is introduction stage, this stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector. Example is 3D TVs which need to compete with the LCD’s TV in pricing and cost.
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This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different type of product. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets. Example is VCD Player which is no longer being use by the customer.
Realizing the rapid changes in the consumer preferences and tastes, technology and globalization, companies must develop a new product and services. Discuss the stages involved in new product development processes.
Idea generation is the first step in new-product development is idea generation. New ideas can be generated by conducting marketing research to find out the consumers' needs and wants, inviting suggestions from consumers. Next is inviting suggestions from employees. Brainstorming suggestions for new-product ideas. Searching in different markets viz., national and international markets for new-product ideas. Getting feedback from agents or dealers about services offered by competitors. Studying the new products of the competitors.
Next is Idea screening. Most companies have a "Idea Committee." This committee studies all the ideas very carefully. They select the good ideas and reject the bad ideas. Identify good ideas and drop poor ideas If the answers to these questions are positive, then the idea of a new-product development is selected else it is rejected. This step is necessary to avoid product failure.
Concept testing is done after idea screening. It is different from test marketing. Product idea is an idea for a possible product that the company can see itself offering to the market. Product concept is a detailed version of the idea stated in meaningful consumer terms. Product image is the way consumers perceive an actual or potential product. Here, a small group of consumers is selected. They are given full information about the new product. Then they are asked what they feel about the new product. They are asked whether they like the new product or not. So, concept testing is done to find out the consumers' reactions towards the new product. If most of the consumers like the product, then business analysis is done.
Business analysis is a very important step in new-product development. Here, a detailed business analysis is done. The company finds out whether the new product is commercially profitable or not.Under business analysis, the company finds out whether the new product is commercially profitable or not? and what will be the cost of the new product?So, the company studies the new product from the business point of view. If the new product is profitable, it will be accepted else it will be rejected.
Then is Product development. At this stage, the company has decided to introduce the new product in the market. It will take all necessary steps to produce...