Product Development and Marketing —Reflections of a Practitioner—

Product Development and Marketing --Reflections of a Practitioner-- Gloster B. Current, Jr. Katz MBA 1972 Professor Chatterjee’s Class February 16, 2011

Almost 40 Years Ago……. I sat where you sat On a leave of absence from A. T. & T. Had served in the Army Something covered in a Pitt marketing class…. ”made a light bulb go off. ”

Today’s talk will cover My career since Pitt New Product/Service insights Real examples Connection to your course work this semester

Class Question: What is Marketing?

Gloster’s Definition Marketing is the process of finding out what your target consumer wants and needs; then making it available to them in the places they are; and at a price they are able and willing to pay; that results in a profit for your company.

The classic “ 4 P’s” of Marketing Product Promotion Price Place Could it be? add a 5 th “P”. What would

First stop: Procter & Gamble Selected data on P&G Comet cleanser Bounce fabric softener Ivory bar soap

Research question that led to new product at P&G: “If guests were coming to your house unexpectedly, which 2 rooms of the house would you clean first? ”

New product concepts…. where to focus? Satisfaction Importance

Second stop: RJR Foods/Del Monte Cities Winston-Salem, N. C. San Francisco, CA Toronto, Canada Projects Hawaiian Punch re-positioning Del Monte New Products New Packaging technology to North America

Positioning: (refer to Cooper “Winning at New Products”, page 61) I. Prime Prospect II. Frame of Reference III. Point of Difference (e. g. what is the single reason you want your prospect to buy this? ) -Attribute = product related, e. g. “tastes like home-made” - Benefit = people-related, e. g. “gets rid of ring around the collar” IV. Reason Why

Positioning in a sentence To (prime prospect), product XYZ is the (frame of reference) that (point of difference) because (reason why). (Discuss Hawaiian Punch repositioning)

Del Monte Canada New Products Del Monte CEO to Gloster: “We haven’t had a new product in Canada in 10 years. ” New products launched Del Monte juices in tetra brik carton Hawaiian Punch drinks in tetra brik carton Del Monte lite taste fruits Del Monte no salt vegetables

Third stop: Kentucky Fried Chicken Focus was operations management

Fourth stop: Citibank Gramm-Leach-Bliley Act of 1999 How financial services differs from consumer goods Show Branch marketing catalog

Fifth stop: Lincoln Financial Group Major repositioning of Company Substantial market research Highly integrated with financial planners in the field. Reference Advertising Age article Show ad from “Investing with Confidence” (2. 38)

Lincoln Financial Group – Sports Marketing Lincoln Financial Field Various hospitality gifts Show Lincoln Financial Field clip (4: 28)

Q UESTIONS?