BA 590

1
BA 590

• New Product Development and Sales

2
Defining Product
Exhibit 8-1
8-3
3
The Adoption Curve
Exhibit 13-7
Time
13-14
4
The Adoption Curve

• Innovators
• First to Adopt, Eager to Try
• Young, Well-Educated, Mobile
• Seek Info from non-salesperson Sources
• Early Adopters
• Opinion Leaders
• Greater Contact with Salespeople
• Word-of-Mouth

5
The Adoption Curve

• Early Majority
• Avoid Risk, Try Only if Others Have Usually are
  Not Opinion Leaders
• Late Majority
• Cautious About New Ideas, Older and More Set in
  Their Ways
• More Subject to Peer Pressure

6
The Adoption Curve

• Laggards
• Suspicious of New Ideas
• Do Things the Way that They Have Always Been Done

7
The Product Life Cycle
Exhibit 9-1
9-3
8
Defining Product

• High Physical Good Emphasis
• Nails, Soup
• Medium Physical Good Emphasis/Medium Service
  Emphasis
• Restaurant Meal, Automobile Tune-up
• High Service Emphasis
• Financial Services, Hair Cut, Postal Service

9
Consumer Product Classes
8-4
10
Product Lines

• Product Assortment All Products and Product
  Lines in a Firm
• Product Lines Individual Products that are
  Closely Related
• Individual Products Particular Products in a
  Product Line

11
Oakley Product Assortment
12
Oakley Product Line
13
Individual Product
14
3-Minute Drill

• Identify a New Individual Product or
  Individual Service that is Part of an Existing
  Product Line. Explain Why it Would be Successful
• Example Kodak has a Product Line of Disposable
  Cameras. A Possible New Individual Product
  Would be a Disposable Digital Camera.

1-5
15
The Product Life Cycle
Exhibit 9-1
9-3
16
Planning for Life Cycle Stages
9-4
17
New-Product Development Process
Exhibit 9-4
9-5
18
Types of New Product Opportunities
Exhibit 9-5
9-6
19
New-Product Development Management
Top Level Support
Key Issues
Authority
Market-Guided R D
9-7
20
Total Quality Management
Cost of Defects
Management Leadership and return on quality
Continuous Improvement
TQM
Empowerment
Customer Focus
Quality tools, benchmarking, and the like
9-8
21
NPD At Briggs and Stratton

• Are There Any Advantages to Holding Off
  International Distribution of the Quattro Engine?
• What Does Maturity in the Mower Market mean for B
  S?
• Should B S Develop Their own Line of Lawn
  Mowers?

22
Promotion

• Sales Promotion
• Personal Selling

1-5
23
Basic Promotion Methods
Target Market
Price
Promotion
Place
Product
Sales Promotion
Personal Selling
Mass Selling
Publicity
Advertising
Exhibit 13-1
13-3
24
Sales Promotion Activities
Aimed at middlemen
Aimed at final consumers or users
Aimed at companys own sales force
Price deals Promotion allowances Sales
contests Calendars Gifts Trade Shows Meetings Cata
logs Merchandising aids
Contests Coupons Aisle displays Samples Trade
shows Point-of-purchase materials Banners and
streamers Trading stamps Sponsored events
Contests Bonuses Meetings Portfolios Displays Sale
s aids Training materials
Exhibit 13-2
13-4
25
Promotion and the Demand Curve
13-8
26
The Traditional Communication Model
Exhibit 13-4
13-10
27
Message Interpretation
The same message may be interpreted differently
by the encoder and the decoder
13-11
28
Push-Pull Strategies
Exhibit 13-6
13-13
29
Setting the Promotion Budget
13-15
30
Strategy Planning for Personal Selling
Exhibit 14-1
14-3
31
Basic Sales Tasks
14-4
32
Basic Sales Tasks

• Order Getting
• Establishing Relationships with New Customers and
  New Businesses
• Order Taking
• Sell to Regular or Established Customers,
  Complete Most Transactions, Maintain
  Relationships
• Supporting
• Missionary and Technical Specialists

33
Basic Sales Tasks
14-4
34
Types of Sales Presentations

• Prepared Sales Presentation
• Memorized Presentation for All
• Useful for Quick Training, Lower Skill Levels
• Consultative Selling Approach
• Understanding the Customers Needs Before
  Attempting to Close
• Acts as a Consultant to Identify and Solve the
  Customers Problems

35
Types of Sales Presentations

• Buying Formula Approach
• Starts With Prepared Presentation Approach
• Leads Customer Through Logical Steps
• Final Close

36
Steps in the Personal Selling Process
Exhibit 14-3
14-8
37
Questions

• What Strategy Decisions are Needed in the
  Personal Selling Area? Why Should the Marketing
  Manager Be Involved?

38
Salesforce Structure
14-5
39
Selecting, Training, and Motivating
14-7
40
Compensating and Motivating

• Two Basic Decisions
• Level of Compensation
• Method of Compensation
• Method Of Compensation
• Straight Salary
• Straight Commission
• Combination Plan

41
Types of Presentation Approaches
14-9
42
Types of Sales Presentations

• Prepared Sales Presentation
• Memorized Presentation for All
• Useful for Quick Training, Lower Skill Levels
• Consultative Selling Approach
• Understanding the Customers Needs Before
  Attempting to Close
• Acts as a Consultant to Identify and Solve the
  Customers Problems

43
Types of Sales Presentations

• Buying Formula Approach
• Starts With Prepared Presentation Approach
• Leads Customer Through Logical Steps
• Final Close

44
Branding
8-6
45
What Kind of Brand to Use?
8-7
46
The Strategic Importance of Packaging
Convenient packages are easier to use, making
purchase decisions easier for the customer as
well.
8-8
47
Using Warranties to Improve the Marketing Mix
A warranty says the company stands behind the
product. Consumers often feel more comfortable
with products they know come with assurances.
Warranty
8-9