MKTG1001 Lecture Notes - Lecture 8: Swisse, Deodorant, List Price
Understand what a new product is and how it fits with a product strategy.
•
Understand the product life cycle concept and its implications to marketing strategies.
•
LO:
NPD = the development of original products, production improvements, modifications, and
new brands through the company's own R&D efforts
•
NPD Strategy
Rapid changes in consumer tastes, technology and competition, a company cannot rely solely
on its existing products.
1.
Customers want and expect the new and improved products that competition will do its best
to provide.
2.
Through Acquisition: by buying a whole company, a patent or a licence to produce
someone else’s product.
•
Through internal new-product development process.
•
A company can obtain new products in two ways:
3.
a variety of products that the business develops through its own R & D efforts
•
Original products
•
Product improvements
•
Product modifications
•
New brands
•
Includes:
•
New products:
New-to-the-world products (really new products):
•
Types of New Products:
Lecture 7/CH8 - New Product Development (NPD)
Wednesday, 9 May 2018
1:59 PM
Lectures Page 1
that create a whole new market.
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Eg: Polaroid camera, Sony Walkman, Palm Pilot, Rollerblade skates, P&G Febreze.
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Products that take a firm into a category new to it.
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Eg: J & J first insect spray, Hallmark gift items, Canon laser printer, Cadbury from
chocolate into Ice Cream or biscuits, Swisse vitamins into skincare products.
○
New-to-the-firm products:
•
Line extensions in current markets. E
○
g: Cascade light beer, BMW SUVs, Dove liquid soap, Panadol syrup.
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Additions to existing product lines:
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current products made better.
○
Simply improving an existing product (Packaging or feature)
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Eg: VW’s Beetle, Mini, A350, Berocca twist top bottles, Nintendo Wii.
○
Improvements and revisions to existing products:
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Products that are retargeted for a new use or application, or new users/target markets.
E
○
g: Arm & Hammer baking soda sold as a refrigerator deodorant; aspirin repositioned as a
safeguard against heart attacks.
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Also includes products retargeted towards new users or new target markets.
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Existing product but jut repositioning it in the market
○
Repositioning:
•
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Document Summary
Understand what a new product is and how it fits with a product strategy. Understand the product life cycle concept and its implications to marketing strategies. Npd = the development of original products, production improvements, modifications, and new brands through the company"s own r&d efforts. Rapid changes in consumer tastes, technology and competition, a company cannot rely solely on its existing products. Customers want and expect the new and improved products that competition will do its best to provide. A company can obtain new products in two ways: Through acquisition: by buying a whole company, a patent or a licence to produce so(cid:373)eo(cid:374)e else(cid:859)s p(cid:396)odu(cid:272)t. New products: a variety of products that the business develops through its own r & d efforts. Lectures page 1 that create a whole new market. Eg: polaroid camera, sony walkman, palm pilot, rollerblade skates, p&g febreze. Products that take a firm into a category new to it.
