GLOBAL MARKETING

1
GLOBAL MARKETING

• New Product Strategy
• Product Management

2
Understanding the Product
Augmented product
Generic product
Core benefit
Expected product
Potential product
3
Product Classifications

• Durability tangibility classification
• Nondurable goods
• Durable goods
• Consumer goods classification
• Convenience goods
• Shopping goods
• Specialty goods
• Industrial goods classification
• Material and parts
• Capital items
• Supplies and business services

4
Product Mix (Product Assortment)

• The set of all products and items that a
  particular marketer offers for sale.
• Widthnumber of different product lines
• Lengthtotal number of items in the mix
• Depthhow many variants of each product are
  offered
• Consistencyhow closely related the product lines
  are with respect to end use, production
  requirements, distribution channels, etc.

5
Product Line Management

• Product line analysis
• Product line length
• Line modernization
• Line featuring
• Line pruning

6
New Product Development

• There are thousands of new product launches every
  year 25,000
• Expensive to launch new product
• High failure rate only about 56 of new products
  will still be around five years after
  introduction
• Recent studies put the failure rate of US
  consumer products at 95 and European consumer
  products at 90
• Long-term survival of firm is tied into new
  product development

7
What is an innovation?

• An idea, process, or invention that is new or
  different.

Continuous Innovation
Dynamically Continuous Innovation
Discontinuous Innovation
Product-Oriented Definition of Innovation
8
Types of New Products

• New-to-the-world products
• New product lines
• Additions to existing product lines
• Improvements and revisions of existing products
• Re-positionings
• Cost reductions

9
New Product Development Process

• Lengthy
• Multidisciplinary
• Market-oriented

10
Stages in Development Process

• Idea generation
• Idea screening
• Concept development
• Concept testing
• Marketing strategy development
• Business analysis

11
Managing New Products

• Product development
• Quality function deployment
• Alpha testing
• Beta testing
• Market testing
• Estimate trial, first repeat purchase, adoption,
  and purchase frequency
• Commercialization
• Product launch