Product Development and the Marketing Concept Product Mapping

Recall: the Marketing Concept No product development decisions should ever be made without considering the consumer and the competition. Product Mapping involves using the consumer to evaluate the competition.

Recall: the Marketing Concept A business may use one or all of the following tools to study the consumer’s and competition’s place in the product development process:  Product Mapping  Marketing Opportunity Analysis  Benefit Analysis

Product Mapping Definition: organizing or sorting products/services into groupings with similarities Used to: find gaps in what is currently being offered to consumers so that new products can be developed Example: Snack Foods: Potato chips, tortilla chips, rice chips, rice cakes, corn chips, pretzels, etc

Product Mapping “Salty”“Crispy”“Greasy”“Healthy”“Crunchy”“Light” PretzelsPotato ChipsTortilla Chips Rice ChipsRice CakesCorn Chips Place the following products in any “group(s)” that applies Where do gaps exist?

Product Mapping Set up a 6 x 5 grid with the following group categories:  Messy  Tasty  Expensive  Inexpensive  Healthy  Easy to Eat

Product Mapping Fill in the grid by placing the following products where you feel they fit Ice Cream Sandwich Ice Cream Bar Popsicle Frozen Yogurt Packaged Ice Cream Cone (“Drumstick”) Frozen Juice Bar

Product Mapping Ice Cream SandwichIce Cream BarDrumstick Frozen YogurtPopsicleFrozen Juice Bar Place the following products in any “group(s)” that applies Where do gaps exist?

Product Mapping Spectrum Mapping: place products or services along a spectrum of 2 criteria ExpensiveIn-Expensive DrumstickIce Cream BarIce Cream Sandwich Frozen Yogurt Frozen Juice Bar Popsicle

Product Mapping Map the following products on the spectrum ShreddiesRice CrispiesFrosted Flakes Raisin BranFruit Loops Corn Pops Whole Grain CheeriosFrosted Mini Wheats HealthyUnHealthy

Marketing Opportunity Analysis MOA : Defines the various opportunities or market situations for a specific brand and is composed of 3 distinct parts Overall Market – includes all products belonging to a specific category Indirect Competition – includes all products that compete indirectly with a specific product Direct Competition – includes all brands that compete for a share of the same market

Product – Fast Food in Dryden Overall Market – includes all products belonging to a specific category Who/What is the Overall Market in Dryden? ompete for a share of the same market Marketing Opportunity Analysis

Indirect Competition – includes all products that compete indirectly with a specific product. Indirect Competition for Fast Food in Dryden: th0e same market Marketing Opportunity Analysis

Direct Competition – includes all brands that compete for a share of the same market. Direct Competition for Fast Food in Dryden: Marketing Opportunity Analysis

Market Potential MP = N x P x Q N – number of possible buyers P – average selling price Q – average number of the item purchased in a year

Quick Question: Determine the MP for the category “Movies seen in theatres” if 19 million Canadians see an average of 5 movies a year in theatres. The average price of a ticket is $10.

Quick Question: MP = N x P x Q N – number of possible buyers P – average selling price Q – average number of the item purchased in a year MP = N x P x Q MP = 19,000,000 x $10 x 5 MP = $950, 000, 000