MKTG 3000 Lecture Notes - Lecture 16: New Product Development, Febreze, Test Market
Marketing Class Update
Next quiz October 30th. Chapter 19, 6 myths of pricing, couple of squares
Part two of project due November 2
Mid-term November 8th
I. Febreeze—new products
a. Febreeze: scientist messes around with chemical. Scientist was smoker, went home and
his ife otied he did’t sell like soke ayore.
i. Were using chemicals and found out that it would get rid of odors.
ii. Hired a big time marketing manager
iii. Test arket did’t go ell at first
1. Went to hire some behavioral scientists and figure out what was wrong
2. Figured out they ere targetig the produt to people ho ere’t
oered ith the steh eause they ere so used to it ad did’t
notice it
b. Febreeze killed odor. People wanted a scent over it though
c. Different positioning strategy
i. Changed their position to people who clean a lot
d. Past air fresheners just tried to mask odor and go over it
II. New product development process
a. Starts with new product strategy
b. Idea generation
c. Idea screening
d. Business analysis
i. Demand
ii. Cost
iii. Sales/cannibalization
iv. profitability
e. Development
i. Creation of prototype
ii. Manufacturing freasibility
f. Test marketing
i. Limited introduction of a product and a marketing program to determine the
reactions of potential customers in a market situation. Usually small, try to
make it replcable.
ii. Cost of test marketing
1. Often take 1 year or more, depends on product complexity and category
2. Cost can be very expensive
3. Exposes product to competitors
4. Competitors can jam testing programs with their own promotions
5.
iii. Types of test marketing
find more resources at oneclass.com
find more resources at oneclass.com
