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No company can win if its products and offerings resemble every other product and offering. Companies must pursue relevant positioning and differentiation. As part of the strategic brand management process, each company and offering must represent a distinctive big idea in the mind of the target market.
NEW PRODUCT DEVELOPMENT : Identifying market opportunities NPD begins with assessing opportunities in the market. Several methods can be used to uncover significant product opportunities.
Through an assessment of consumer choice criteria and the preference for brands currently marketed, a firm can identify the gaps in the markets, These gaps represent areas of opportunities for new brands,
b. Benefit analysis : One important influence on consumer behaviour and choice is the pursuit of
benefits provided by purchase and use of a brand, A benefit analysis tries to identify the key benefits
sought by consumers and the extent to which existing brands are providing those benefits.
Benefit analysis differs from perceptual mapping in the sense that a new product development from benefit analysis is are improvement over existing
c. Problem Solution : In some cases a firm may discover that no brand currently available addresses a particular problem experience by consumers until the development of the new products which solves the consumers problems.
Idea Generation
After the market opportunity is identified, a firm
GO ERROR
Product concepts are tested with an appropriate group of target consumers, then getting those
consumers reactions.
Rapid Prototyping design products on computer then produce plastic models of each.
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Marketing Strategy Development : The marketing strategy plan consists of three parts : The first part describes 1. The target market size, structure and behaviour, the planned product positioning, and the sales, market share, and profit goals in the first few years.
2. The second part of the marketing strategy outlines the products planned price, distribution strategy and marketing budget for the first year. 3. The third part of the marketing strategy plan describes the long run sales and profit goals and marketing mix strategy over time.
Business Analysis Evaluates the proposals business attractiveness by preparing sales, cost and profit projections to determine whether it satisfies the companys objectives. a) Estimating total sales One time purchased product Infrequently purchased product Frequently purchased product
Product Development The firm develops prototype in an effort to confirm its feasibility in physical terms. It is necessary at this stage to ensure that
The marketing responsibility is to communicate immediately any reaction that would suggest
The go decision involves the risk of the product failure, while on the other hand the
Consumer Tests can take a variety of forms from bringing consumers into a laboratory to giving them samples to use in their homes, free trials, test drives etc. a. Sales wave research b. Simulated test marketing c. Controlled test marketing
- Beta testing
Test Marketing Just as the prototype must correspond exactly to the final product, so it is vital that the test market chosen for partial launch of the
Test marketing objective are : To predict the efficacy of the proposed marketing strategy (refine if needed) To predict the effect of strategy in terms of
market penetration.
The usual procedure for test marketing is to select an easily identifiable sector of the
Commercialisation : If test marketing has fine tuned the appropriate marketing strategy, and the firm has sufficient confidence and knowledge, it should launch and commercialise the product on a full scale basis.
While development costs to the stage of a test market are high, the financial loss of launching a product full scale which is a subsequent failure are always considerably higher. When, Where, and Whom