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ProductandBrand(2)Echo
OutlineThenewproductdevelopmentprocessProductportfolioanalysis
ReviewTheproductlifecycle
Thenewproductdevelopmentprocess(1)Ideastage(generationofideas)Therearemanywaystobringforwardnewideas:frombrainstormingtoestablishingoriginalresearchfacilities.
Thenewproductdevelopmentprocess(2)Conceptstage(developandtesttheproductconcept)Thisstageinvolvestheproductionofdrawings,descriptionsandtheoreticalmodelstoseewhetheranideaworks.
Thenewproductdevelopmentprocess(3)Productdevelopmentstage(Pilotproduction)Itisthetimetomakeoneorasmallnumberoftheproductstoevaluateproductioncapabilities.
Thenewproductdevelopmentprocess(4)Testmarketingstage(sellsomeandtestcustomerreaction)Theidea,aswellasalltherelatedmarketingmixactivities,nowcanbesoldtoasmallselectedmarket.
Thenewproductdevelopmentprocess(5)Evaluation(tolaunchornottolaunch)Thisisacrucialactivitythatseekstoeliminatethoseideasthatdonotpassthetestsasearlyaspossible.
TheCostsoftheNewProductDevelopmentProcess
ProductPortfolioFewcompaniesselljustoneproduct;somesellthousands.Theirproductsarecollectivelyreferredtoastheproductportfolio.
ProductPortfolioManagementItisahugemarketingchallenge.Byusinganumberofportfolioanalysistoolscanmarketerjudgeaproduct’scontributiontotheoverallportfolioandtodecidewhatcourseofactiontotakenext.
ProductPortfolioAnalysisBostonConsultingGroupMatrix(BCGmatrix)Thismodellooksatthegrowthofthemarketandtherelativesharethecompanyhasofthatmarket.
Star
StarStarproductsandservicesareinrapidlygrowingmarketsinwhichthecompanyhasahighrelativemarketshare.E.g.Sony.HSBC.Theyaregoodinvestmentsastheyhavehighearningpotentialbothatthepresenttimeandinthefuture.
CashCow
CashCowAbusinessorproductwhichgeneratesasteady,depend
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