Developing New Products and Managing the Product Life-Cycle – Admission/Application Essay Example
The paper "Developing New Products and Managing the Product Life-Cycle" is a marvellous example of a marketing admission essay.
A product is a tangible entity which has a physical value and is involved in some kind of transaction. The three levels of product are as follows:
• Core product: This is not a physical quantity and represents the advantages that you can have.
• Actual product: This is the usable product with a physical quantity.
• Augmented product: This is the non-physical entity of a product and represents additional advantages.
2. The four characteristics of services are:
• Intangibility: Not substantial or tangible
.• Perishability: Not forever.
• Inseparability: The service provides cannot be separated.
• Variability: Every service is unique.
A doctor’s service involves the doctor’s performance and skills directly. On the other hand, a bank’s services do not involve any direct skills or performances. Rather, a bank’s service provides different facilities like storage options, loans, etc.
3. The four options are:
1). Manufacturer’s brand (or national brand): In this, the manufacturer or creator owns a product or service, for example, IBM.
2). Private brand: This type is owned by a reseller or distributor, for example, film distributors like Fox.
3). licensed brand: In this, the products of a company are sold using another company’s brand name, for example, restaurant franchises like Mc Donald’s.
4). Co-branding: This involves two companies getting together and manufacturing products, for example, General Mills and Hershey’s.
4. There are several stages involved in new product development process.
• Idea Screening- In this process, good ideas are accepted and poor ideas are dropped
• Concept development and testing-Detailed version of the product idea is generated and the concept is tested in this process
• Marketing strategy development- It describes the target market, planned value proposition, profit, market share first and then outline the planned price of the product and marketing budget and lastly, it describes long run sales and profit goals and marketing mix strategy.
• Business analysis- Reviews of sales, costs and profit projections and company objectives are assessed.
• Product development- This is the stage where the concept is developed into a physical product5. There are a basic difference between styles, fashion and fads. Style is a basic and distinctive mode of expression whereas fashion is a popular style in a given field. Fads result in a temporary period of unusually high sales driven by consumer enthusiasm.
6. The stages of Product lifecycle are
• Introduction stage- Sales is low, high cost per customer and competition is few. Example is any basic product.
• Growth stage- Sales raise rapidly and the number of competitors also increase. Companies Offer product extensions, service, and warranty in this stage.
• Maturity Stage- Peak sales and the number of competitors start to be stable. Companies diversify brand and models in this stage.
• Decline stage- Declining sales and declining number of competitors. Examples might be considered as phase out weak items.