Basic Marketing – Chapter 10 Supplementary Power. Point Archive This is an archive of photos and exhibits from the text and additional graphics and exhibits as referenced in the Basic Marketing Multimedia Lecture Guides. See the Basic Marketing Multimedia Lecture Support Package for additional detail and teaching suggestions. For use only with Perreault/Cannon/Mc. Carthy. These images may not be redistributed or used for any other purpose without permission of the publisher, Mc. Graw. Hill/Irwin, The Mc. Graw-Hill Companies, Inc. Mc. Graw-Hill/Irwin Copyright © 2011 by The Mc. Graw-Hill Companies, Inc. All rights reserved.
10 -2 Under Armour opening photo
10 -3 Exhibit 10 -1: The Role of Product Management and New. Product Development in Marketing Strategy
Exhibit 10 -2: Typical Life Cycle of a New Product Concept 10 -4
10 -5 Magellan GPS ad
10 -6 Colgate 360 Sensitive ad
10 -7 Dawn Simple Pleasures ad
10 -8 Thermoscan ad
10 -9 XO Laptop photo
10 -10 ZARA website screenshot
10 -11 Exhibit 10 -3: Typical Changes in Marketing Variables over the Product Life Cycle
10 -12 Du. Pont Lycra ad
10 -13 Tide Rapid Action and Tide to Go ads
10 -14 Bic’s Luminere ad
10 -15 GE CAD photo
Exhibit 10 -4: New-Product Development Process 10 -16
Exhibit 10 -5: Types of New-Product Opportunities 10 -17
Microsoft Office Live Meeting ad 10 -18
10 -19 Weyerhaeuser ad
Nabisco consumer packaged goods on supermarket shelf photo 10 -20
10 -21 Hertz ad
10 -22 Hyundai ad
Exhibit 10 -7: Pareto Chart Showing Frequency of Different Complaints 10 -23
Exhibit 10 -8: Fishbone Diagram Showing Cause and Effect for Why Tables are Not Cleared Quickly (p. 283) 10 -24
10 -25 Motorola/Oakley RAZRWIRE photo
10 -26 Uniden and Philips ads
10 -27 Product Life Cycle Key Issues
10 -28 Nestle’s Maggi Hot Pockets (France) and Hot Pockets Subs (U. S. )
10 -29 How Quickly a New Product Moves through the Cycle § Comparative advantage—is 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
10 -30 Zara online catalog screenshot
10 -31 Fashion Cycles Follow Three Stages § Distinctiveness stage § Some consumers seek—and are willing to pay for— products 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
10 -32 Patterns of Fashion, Fad, and Style Cycles for Fashion Product Fad cycles may be very short Sales level Fashion cycles may last for some time as they spread beyond the innovators Sales level Styles may come back over time as fashions and fads
10 -33 Examples of Three Marketing Strategy Choices for a Firm in a Mature Product Market
10 -34 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
10 -35 New-Product Development § New-product thinking should be an on-going effort § Top-level support is vital § Someone should be in charge of the effort § Firm should constantly generate new ideas, then narrow down to the best opportunities with clearly specified screening criteria § Need a well organized new-product development process § Involvement of cross-functional teams helps in the screening process and avoids problems and surprises later
10 -36 Greenfield Online and Sauder ads
10 -37 CSA and Honda safety ads
10 -38 Total Quality Management § Everyone in the organization is concerned about quality, throughout all of the firm's activities, to better serve customer needs § The cost of poor quality is lost customers § Achieving quality requires continuous improvement—a commitment to constantly make things better one step at a time § Uses statistical process controls to identify problems. Examples: § Pareto charts § Fishbone diagrams § "Slay the dragons first". . . to get a return on quality § Specify jobs and benchmark performance
10 -39 Building Quality into Services § Every firm must implement service quality as part of its plan, whether its product is primarily a service, primarily a physical good, or a combination of both § Can't simply "inspect in" quality—must be there from the start § Ongoing training is critical (plan for the special) § Empower employees to correct a problem without first checking with management
10 -40 Are Product Modifications Really New Products?
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