1. Developing Effective Products and Services

2. New or Just Improved? Airbags (cars) Scanning Equipment For stores
CD’S
Nissan Titan
Internet
iPhone
Scientists and Researchers develop new products.
Many ideas come from consumers that use the products and have improvements they would like to see.
Jarvik-7 Artificial Heart
Flat Screen TV
Kennel Inn
Target
My Shirt

3. Marketing Research
Finding solutions to problems through carefully designed studies involving consumers.

4. Steps in Marketing Research
Propose a solution
Gather and analyze information
Develop a data collection procedure
Study the situation
Define the Marketing Problem
Primary Research – gathering information to use to solve a current problem.
Secondary Research – using data gathered for another porpose to solve a new/different issue.

5. Types of Research Studies
Surveys
Focus Groups
Observation
Experiment
Surveys – Most common, set of questions, sent through the mail/ internet/ phone.
Focus Groups – less structured, small number of consumers take part in a group discussion, finds areas of agreement and disagreement.
Observation – record the actions of consumers instead of asking questions.
Product Design Teams may observe the product in use, to make design improvements.
Experiment – presenting 2 carfully controlled alternatives to subjects in order to determine which is preferred/ has better results. (2 different sizes, coupons, etc.)

6. Activity
Issue: A top athletic shoe manufacturer finds out that is it ranked in the top 5 for people over 25, but that it is not ranked in the top 5 for people under 25. How can this manufacturer (using the 5 steps in Marketing Research) plan a way to improve its ranking among the younger people?

7. Parts of a Product Basic product – simplest form
Product features – additions and improvements
Options – choices in features
Brand Name – unique identification
Packaging – protection and security
Guarantee/Warranty – build customer confidence
Basic Products – This is not unique, and is usually available from several companies.
Product features – a cell phone that also has built in digital camera, voice dialing, and web browser.
Options – car – engine size, color, manual or auto insurance
Brand Name – companies try make this memerable and have an appealing image
Packaging – coffee canister – easy to pick up with one hand, easy way to provide information to help consumers make decisions
Guarantee/Warranty – if the product does not meet the needs – the company will repair or refund $

8. New Product Planning is…
Costly
Several million dollars
Time-Consuming
Several years
Lots of people
Ideas, production, marketing, analyzing cost, forecasting sales

9. Steps in New Product Planning
Idea Development
Idea Screening
Strategy Development
Production and Financial Planning
Limited Production and Test Marketing
Full scale Production
Idea Development – creative process, scientists, salespeople, employees, customer survey, focus groups, most ideas are to improve existing products
Idea Screening – look closer at each idea to see if there is a demand for the product, are there other products? Reasonable cost? Legal and safe?
Strategy Development – if the product appears to be workable then, need to develop a marketing strategy – begin to focus on target market, testing product on customers
Production and Financial Planning – id’s the facilities, equipment, and peopl needed – then the cost of production determined to ensure a profit
Limited Production and Test Marketing –
Full scale production -

10. Products Services Tangible Intangible Things you can see
Things you can touch
Intangible
No physical form
Inseparable
Is used as it is being produced
Perishable
Cannot be stored for later
Heterogeneous
Differences is the quality of service
Intangible – more difficult to market – customers cannot see if it will be what they need