Product Development

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Product Development

• Sports and Entertainment Marketing

2
Think About It!

• Think of two sports and two entertainment
  products
• Are they new or old?

3
Types of New Products

• New-to-the-World Products
• Brand new innovations (the first of anything)
• New Product Category Entries
• Nike adding sports equipment to there existing
  apparel and shoe market
• Product Line Extensions
• Adding an additional flavor of Gatorade
• Newest Twilight Movie
• Product Improvements
• NEW and IMPROVED!!

4
ACTIVITY!!

• Come up with an example of each
• New-to-the-World Products
• New Product Category Entries
• Product Line Extensions
• Product Improvements

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Product Life Cycle
Four Stages of the Product Life Cycle
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Stages of Product Life Cycle

• Stage 1 Introduction (new to the market)
• Companies
• promote consumer awareness
• get customers to try the product
• educate consumers about the product
• Stage 2 Growth
• Competitors are entering the marketplace
• The product must be improved to stay competitive
• Sold in more locations

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Stages of Product Life Cycle

• Stage 3 Maturity Stage
• Product has reached its peak
• Sales slow down
• Repeat customers may stop buying and it may be
  hard to attract new customers

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Stages of Product Life Cycle

• Stage 4 Decline
• Sales and profit continue to drop
• There is no longer a demand for the product
• Product may be dropped by the company
• Good Example cassette tapes

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Think about it!

• Think of a product that is currently in each of
  the stages of the product life cycle.
• Introduction
• Growth
• Maturity
• Decline

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What can be done to extend the Product Life Cycle

• Develop new uses for the products
• Develop new product features and line extensions
• Increase the existing market (target market)
• Change Marketing Mix (5Ps)
• Link products to a trend

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Activity

• In groups of 4, each group is to create a new
  product which can be a variation of an existing
  product with a point of difference.
• Then each group is to come up with a plan of how
  to market this product in each stage of the
  product life cycle.
• Think about - Is the product itself reasonable?
• Is the plan appropriate? Does the plan
  properly manage each stage of the life cycle?

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Market Research
But before any of this can happen companies
must conduct

• The process of systematically collecting,
  recording, analyzing, and presenting data related
  to marketing goods and services

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Why is Market Research important?

• Global Market other countries are different
  from the US and companies need to learn and
  understand their needs and wants before they
  enter that market
• Competition companies need an edge to compete
  in the marketplace, so the need to research what
  their competitors are doing
• Changing Market customer needs change daily, it
  is important to understand them before a company
  enters the marketplace

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5 steps in Market Research

1. Identify the problem
2. Conduct secondary research
3. Select and design primary research
4. Collect data
5. Report and analyze data

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Identify the Problem

• Ask questions that research could answer
• Example A golf ball manufacturer might ask
• What can we do to improve the image of our golf
  ball and stand out from the rest of the market?

Objective To determine how golfers select their
golf balls
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Conduct Secondary Research

• Secondary research published data that have been
  collected for some other purpose
• Data that a company DOES NOT compile themselves

Examples Government records (census
demographics, etc), sales figures, trade
organizations
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Design Primary Research

• Primary Research Original research conducted for
  a specific marketing situation
• Secondary research is done first because it may
  answer all the questions and primary research may
  not be needed

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Collect Data

• Data records or facts and figures that are
  organized and analyzed in some way
• Ways to collect
• Experiment try it out
• Observation watch it happen
• Survey ask about it

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Report and Analyze

• In order for data to be useful it must be
  reported and analyzed
• What does the information collected tell us about
  the consumer (or subject)?