Basic Marketing, 13th edition

1
Chapter 10 Product Management and
New-Product Development
2
The Product Life Cycle
Exhibit 10-1
10-3
3
How Quickly a New Product Moves through the
Product Life Cycle

• Comparative advantageis the new product really
  better?
• The new product is easy for consumers to use
• Product advantages are easy to communicate
• Product is easy to try on a limited basis
• Product is compatible with customers' values and
  experiences

4
Fashion Cycles Follow Three Stages

• Distinctiveness stage
• Some consumers seekand are willing to pay
  forproducts different from those that satisfy
  the majority
• Emulation stage
• When many consumers want to buy what is
  satisfying the original users or fashion leaders
• Economic Emulation stage
• Many consumers want the currently popular
  fashion, but at a lower price

5
Patterns of Fashion, Fad, and Style Cycles for
Fashion Products
6
New Products

• New products are critical to survival
• markets change
• competition changes
• product life cycles march on
• What is a new product?
• Firm's perspective
• a product that is new in any way
• FTC's perspective
• a product must be entirely new, or changed in a
  functionally significant way
• can only be called new for six months

7
New-Product Development Management
10-7
8
New-Product Development Process
Exhibit 10-4
10-5