PRODUCT DEVELOPMENT

1
PRODUCT DEVELOPMENT
2
BEFORE WE BEGIN.

• Can you think of a problem you have with an
  existing product?
• Can you think of a product that you wish existed?

3
MARKETING AND PRODUCT DEVELOPMENT

• Once a company identifies a need/want, they must
  ask
• Can we produce it?
• Can we sell it?
• Production marketing departments conduct a
  feasibility study
• Possible? Practical? Viable?
• Business Opportunity? What Pricing? Current
  Competition? etc.

4
INVENTION VS INNOVATION

• Inventions are new devices, methods or processes
  developed from study and experimentation.
• Innovations A product or service that uses new
  technology, items, or processes to change
  existing products, production techniques or
  distribution methods.

5
CANADIAN INVENTIONS

• Basketball
• Batteryless radio
• Cardiac pacemaker
• Electron microscope
• Hockey
• Hydrofoil
• IMAX technology
• insulin

• Kerosene
• Macintosh apple
• Pablum
• Snowmobile
• Snowshoes
• Steam fog horn
• Telephone
• Toboggan
• wirephoto

6
PRODUCT DEVELOPMENT

• All must engage at the beginning
• Many stop after initial business established
• Most successful treat product development as a
  major ongoing marketing activity.
• Failed McDonalds Products
• Daily Finance Product Failures
• http//www.youtube.com/watch?vv2QAK1ZHi0A

7
OAKLEY THUMP SUNGLASSES
8
ZUNE
9
STEP 1 - IDEA GENERATION

• Research reveals what consumers want or need
• Wise marketers listen to customers
• Also ask questions about what they would like to
  see
• Brainstorm How do we make this product better?

10
STEP 2 - IDEA SCREENING

• Not all ideas are good ones
• Test consumer reaction
• Test competitive situation
• Many factors need to be considered!

11
STEP 3 - CONCEPT DEVELOPMENT

• Design a prototype
• Test to establish it works
• Market test to see if consumers like it
• Note what consumers like the most

12
STEP 4 - MARKET STRATEGY

• Use observations to design new research
• Determine primary and secondary market
• Put together a marketing plan to implement the
  strategy

13
STEP 5 - FEASIBILITY STUDY

• Often done at the same time as market strategy
  and product design stage because they are all
  directly dependent
• Design impacts materials materials determine
  price price affects distribution channels
• Calculate costs and all expenses related to
  product
• Must be able to make and sell at a price
  consumers are willing to pay and generate a
  profit for the company

14
STEP 6 - PRODUCT DESIGN

• Determined by preferences of primary market
• Preferences will determine look, features,
  versatility as well as extras like warranty,
  manuals, packaging and service

15
STEP 7 - TEST MARKETING

• Test product acceptance
• Ask consumers to try it for a period of time,
  then fill out a survey
• Focus groups (if a simple item)
• Would you buy it? How much would you pay for it?

16
STEP 8 - MARKET ENTRY

• Product enters the PLC
• Up to the consumer to determine how long it will
  last on the market