Thursday, July 7, 2011

Ch. 11 - Developing and Managing Products

The term of market mix refers to a unique blend of product, place, promotion, and pricing strategies designed to produce matually satisfying exchanges with a target market. Typically, the marketing mix starts with the product p. the heart of the marketing mix, the starting point, is the product offering and product strategy.

New products are important to sustain growth, increase revenues and profits, and replace obsolete items. A new product is a product new to the world, the market, the producer, the seller, or some combination of these. And there are several steps for new products development. Firstly, the new product strategy focus and provides general guidelines for generating, screening, and evaluating new-product ideas. Secondly, idea generation is that gathering new idea about products mainly from customers, employees, distributors, competitors, vendors, research and development. Thirdly, idea screening eliminates ideas that are inconsistent with organization’s new product strategy or are obviously inappropriate for some other reason. Fourthly, business analysis figures for demand, cost, sales, and profitability are calculated.  Fifthly, development decides the product packaging, branding, labeling, and so forth. Sixthly, test marketing is the limit introduction of a product and a marketing program to determine the reaction of the potential customers in a market situation. Lastly, commercialization is the decision to market a product. A new kind of product can only be marketed well through this product process.

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