MAR3023 Lecture Notes Exam 3 1 Chapter 12 Lecture Segment 1 New Products from the Firm s Perspective New Product Development 80 of new products fail 7 Steps to Develop New Products 1 Idea Generation a Innovation Engineers creating product 2 Idea Screening a Test the idea 3 Concept Testing 4 Business Analysis a Test on broader level b What will my target market thing a How much will it cost to produce b How much will consumers pay for it c How will this affect profits d Last step from business s side 5 Development of Physical Product 6 Beta and Market Testing 7 Product Launch Nielsen o Product BASES Products o Product concept Screening Pre BASES BASES Snapshot Neurofocus o Product pricing Price Advisor o Product Launch BASES Launch Advisor o Early Adjustments BASES Product Advisor o Product Modifications BASES Restager Idea Generation o Neurofocus fingers to buy Neurofocus found that Cheetos lovers actually like the orange mess on their o Crowdsourcing Have consumers tell you which product to launch more compelled Mountain Dew have consumers vote Frito Lay Different types of chips Chapter 12 Lecture Segment 2 New Products from the Customer s Perspective Test Markets Cities that represent demographic groups of the US As steps move forward more expensive If it doesn t work at test market at least you saved on not moving it to country as a whole Product Launch MAR3023 Lecture Notes Exam 3 2 o Sun chip example Biodegradable chip bag now they re not because bag was too noisy Product Adoption Process 1 Awareness Buyer becomes aware of the product 2 Interest Buyer seeks information and is receptive to learning about the product 3 Evaluation Buyer considers product s benefits and decides whether to try it 4 Trial Buyer examines tests or tries the product to determine if it meets his or her needs 5 Adoption Buyer purchases the product and is expected to use it again whenever the need for this general type of product arises New Product Adaption o Innovators First to adopt new product Most valuable spread awareness o Early Adopters Choose new products carefully help spread word of mouth Most valuable spread awareness o Early Majority Adopt just prior to average person o Late Majority Skeptics who adopt new products when they feel it is necessary o Laggards Last to adopt a new product Jobs in New Product Development NPD o NPD The integration between Engineering and Marketing Product Marketing Analyst Product Specialist Product Marketing Director o In Engineering Product Engineer New Product Projects Manager What is Marketing Research Chapter 5 Segment 1 What is Marketing Research o Marketing Research information that may be used to solve a marketing problem Process of designing gathering analyzing and reporting Examples Product Development pricing studies customer satisfaction assessments distribution analysis promotion effectiveness studies o Pricing Strategy o Customer Satisfaction Increased wait times can signal higher quality Unknown waits seem longer than known waits Explained waits seem shorter Where Did It Come From o 1980 s TQM Movement Deming Juran Customer Orientation Research to find custom reaction to product MAR3023 Lecture Notes Exam 3 3 Research to compare product to competitor s Research to find problems with product Why is it Important businesses work o It gives managers answers to important questions and leads to big movements on how o It s the foundation for marketing strategy decisions Cluster Analysis Statistical analysis technique that identifies customer segments The researcher measures things like price sensitivity and importance of Cluster analysis identifies groups segments of customers that have quality and on time delivery similar characteristics Types of Research o Applied Research Research designed to solve a specific problem usually for a specific company Example consulting specific to company o Basic Research Research designed to extend knowledge of marketing phenomena not looking at particular company Chapter 5 Segment 2 The Research Process Marketing Research Process o 1 Problem Definition A problem is well defined as half solved Exploratory Research Qualitative Research Helps in problem solving as it allows the researcher to better define the problem by getting a look at it first hand Possible Tasks involved Manager interviews expert interviews secondary data qualitative research o 2 Research Design Two Types of Data Information 1 Secondary Date Information that has been collected for a purpose other than the research at hand Customer Reviews 2 Primary Date Information that has been gathered specifically for the research objectives at hand Exploratory Get at real source of problem little to no information o Describes less structured data collection methods Used to design to clarify the problem secondary info qualitative research concept A flexible group discussion of a product ad or o Focus Groups o Observation Descriptive Some information not as much as needed o Describes the characteristics of a population o Generally associated with surveys who buys what they buy when where how much MAR3023 Lecture Notes Exam 3 4 o Crosstabs o Regression o Survey Research Mail telephone online personal interview surveys Causal Have a lot of information test different solutions o Identifies cause and effect between variables o Experiences o Correlation and causation o Basic Research o Frontline Technology Results suggest countervailing effects Technology benefits negative encounters and harms positive encounters o 3 Sampling o 4 Data Gathering o 5 Data Analysis o 6 Report Preparation Chapter 14 Lecture Segment 1 Branding Strategies Brand Extensions Different product Category o 81 of New Products Brand Stretching Using an established brand in an unrelated market o Success depends on the strength of the original brand and consumers pre existing brand associations Co Branding When two brands are presented together o Sometimes from different companies o Are often from same company Kraft Genericized Brand The brand is so omni present it has become part of your every day reality that the brand itself has represented the product o Examples Q tips Ziploc Aspirin Velcro Brand Counterfeits Estimates losses to counterfeits are 250 350 Billion o Most targets are mass market products or products with high profitability o Most counterfeited brand Louis Vuitton Packaging The development of a container and graphic design for a product o Gets attention and sends signals about products
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