Products

1
Products
2
Types of Differentiation

• Product differentiation
• Service differentiation
• Channel differentiation
• Image differentiation

3
Important
Profitable
Distinctive
Differences Worth Establishing
Affordable
Superior
Preemptive
4
Perceptual Map
5
Sales Profit Life Cycles
6
Assumptions of PLC

• Products have a limited life
• Product sales pass through distinct stages with
  unique problems and opportunities
• Products require different marketing strategies
  at each stage

7
3 ways to use the PLC

• Examine your own strategy to determine if it is
  appropriate for this phase.
• Examine the strategies of your competitors to
  determine if they are appropriate for this phase.
• Anticipate how the market will change in the next
  phase of the PLC and ensure that your strategy
  can be easily transferred.
• Warning You CANNOT anticipate with any degree of
  accuracy when the market will move from one phase
  to the next.

8
Introduction

• High products costs
• Small sales volume
• Limited distributions
• Frequent changes in product or service
• Considerable cash resources required

9
Growth

• Sales begin to rise rapidly
• Increased distribution
• Growth of new competitors

10
Maturity

• Aggressive competition
• Low prices/costs
• Competitors are well defined

11
Decline

• Product lines narrow
• Prices soften or crash
• Competitors leave the market

12
New Products
13
Sonic Drive-In has a policy of continually
introducing new foods.
14
Is There a Pioneering Advantage?

• 22 Immutable Rules of Marketing
• 1 Its better to be first, than it is to be
  better.
• (Ries and Trout)

15
Taco Bell Food innovation team members evaluate
taste, portion size, temperature and content of
the new Border Bowl.
16
Types of New Products

• New-to-the-world products
• New product lines
• Additions to existing product lines
• Improvements of existing products
• Repositionings
• Cost reductions

17
Ten Factors Associated with New Product Success

• Product superiority/quality
• Economic advantage to user
• Overall company fit
• Technological compatibility
• Familiarity to company

• Market need, growth, and size
• Competitive situation
• Defined opportunity
• Market-driven process
• Customer service

18
Why New Products Fail

• Over championing
• Overestimated demand
• Poor design
• Poor marketing execution
• High development costs
• Strong competitive reaction

19
New Product Development Process
Idea Generation
20
Adopter Categorization of the Basis of Relative
Time of Adoption of Innovations
Time of adoption innovations
21
Characteristics of the Innovation Rate of Adoption

• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability

22
Check out this website

• http//www.productscan.com

23
New Product Introductions U.S. 1993-2003
24
Top International New Product Innovations of 2003

• Comfort Fast Dry Fabric Conditioner (U.K.)
• Dalter Parmi Petales Parmagiano Reggiano Cheese
  (France)
• Iceland Kids Crew Jelly Lollies (U.K.)
• Thermofocus Infra Red Thermometer (U.K.)
• Jacoby Trabenmost zum Selbermachen von
  Felderwiessmen (Germany)
• According to productscan.com

25
How Should Graceland Position Itself in the
Future?