MKTG 471 Chapter Notes - Chapter 12: Product Design, New Product Development, Test Market
19 May 2018
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Marketing 471 - chapter 12 (Product design)
Managing Existing Products
Able to adjust product features in response to changes in customer needs
Marketer must develop, alter and maintain an effective product mix
Assessing current mix - can identify weaknesses and gaps - lead to improving mix
(line extension, product modification)
Line extension
Development of product closely related to existing products in the line but
designed to meet different customer needs
- Less risky and less costly than introducing a new product
- Increase sales, take market share from competitors
Product Modification
Changing one or more characteristics of a product
Original product drops form product line
Certain conditions must exist for modification to work
(Modifiable, recognize modification, make product consistent with desire)
Three major types of modifications
Quality, functional, aesthetic
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find more resources at oneclass.com
Quality Modifications
Changes to dependability and durability
Functional Modifications
Changes that affect a products versatility, effectiveness, and convenience or
safety
Aesthetic Modifications
Sensory appeal of a product
Developing New Products
enhances product mix and adds depth to a product line, introducing can be
expensive and risky (new product failures often occur and create major financial
problems for an organization) failing to introduce new products can be risky (lose
market share with failure to innovate and keep up with competitive products)
New Product meaning
can be innovative product that has never been sold, new product can be modified
product that existed previously. product company has not marketed previously
but similar products exist, brought to multiple markets
New product development process
Seven phase process introducing products
Idea Generation
Activity of seeking product ideas to achieve organizational objectives
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Able to adjust product features in response to changes in customer needs. Marketer must develop, alter and maintain an effective product mix. Assessing current mix - can identify weaknesses and gaps - lead to improving mix (line extension, product modification) Development of product closely related to existing products in the line but designed to meet different customer needs. Less risky and less costly than introducing a new product. Increase sales, take market share from competitors. Changing one or more characteristics of a product. Certain conditions must exist for modification to work (modifiable, recognize modification, make product consistent with desire) Changes that affect a products versatility, effectiveness, and convenience or safety. New product meaning can be innovative product that has never been sold, new product can be modified product that existed previously. product company has not marketed previously but similar products exist, brought to multiple markets.
