200083 Lecture Notes - Lecture 8: Innovation Management, Services Marketing, Bp
Chapter 8)Developing new products and managing innovation
8.1-explain how companies find and develop new product ideas
8.2-list and define the steps in the new product development process and describe the
main considerations in managing this proccess
8.3-Describe stages of the product life cycles and how marketing strategies change
during the product life cycle
8.4-Discuss socially responsible product decisions and international product and
services marketing
8.1-new way of obtaining product:
1)acquisition-buying a whole companies patent or licence to produce someone elses product
2)new product development-product improvements, product modifications,
new product-important for customers-add solution and variety to lives
8.2-Managing product development-
1)customer centred new product development-new ways to solve customer problems and
create satisfying experiences
survey-successful products are differentiated create customer value
survey-companies that engange their customers in new product innovation process had twice
their return on assets
2)Team based new product development-
company departments work together in cross functional teams overlapping the steps in the
product development process to save time
limitations: creates organisational tension than the orderly sequential approach
3)Systematic new product development-
install innovative management system-senior person to be manager
set up web based management
assign a cross functional management committee too evaluate proposed product ideas
innovation management has two favourable outcomes:
create innovative culture
yield large number of product ideas
8.3Product strategies-
PLC-product class,form,brand
Applied to style,fashion,fads
Style-basic and distinctive mode of expression
Fashion-currently accepted or popular style in a given field
Fad-fashion enters quickly, adopted with great zeal
Temporary period of high sales
8.4-Socially responsible product decisions-
manufacturers complies to laws-protecting consumers from unsafe
food,pharmaceuticals,cosmetics
safety legislation-regulate fabric,substances
companies obey patent laws when developing new products
product liability litigation-resulted in increases in liability insurance premimums,discontinue
product lines
International product and services marketing-
1)must figure out which products to introduce to which countries
2)decide how much to standardise or adopt their products
3)packaging made accordingly-names,colours,labels must translate easily
made to meet physical characteristics of consumers-e.g)china smalled can for smaller hands
adapt offerings
Services marketing-
Professional and business services- accounting,consulting and advertising have globalised
As more clients employ worldwide marketing and adv.-agencies responded by globalising own
operations.
Retailers-last service business to go global
-home markets of Walmart,depot,saks fifth are expanding into faster growing markets in other
countries-
Walmart operates in over 10000 retail outlets in 27 countries
Asian shoppers by European products in French stores
Global services will continue in telecommunication,banking
Week 7) –Chapter 9)Pricing to capture customer value
Major pricing strategies- Customer value pricing
Cost based pricing
Competition based
1.Customer value pricing-
Good value pricing:
1)Assess customer needs and value perceptions
2)set target price to match customer perceived value
3)Determine costs that can be incurred
4)Design product to deliver desired value at target price
companies adopt value pricing-attach value added services to differentiate offerings
Document Summary
8. 1-explain how companies find and develop new product ideas. 8. 2-list and define the steps in the new product development process and describe the main considerations in managing this proccess. 8. 3-describe stages of the product life cycles and how marketing strategies change during the product life cycle. 8. 4-discuss socially responsible product decisions and international product and services marketing. 1)acquisition-buying a whole companies patent or licence to produce someone elses product. 2)new product development-product improvements, product modifications, new product-important for customers-add solution and variety to lives. 1)customer centred new product development-new ways to solve customer problems and create satisfying experiences survey-successful products are differentiated create customer value survey-companies that engange their customers in new product innovation process had twice their return on assets. 2)team based new product development- company departments work together in cross functional teams overlapping the steps in the product development process to save time limitations: creates organisational tension than the orderly sequential approach.
