Marketing strategies of Fortune 500 companies

Marketing strategies of Fortune 500 companies

 

Done by: Assilbekov Ch.

Amenova A.

Kadrzhanova G.

Checked by: Ilyasov Didar

• Understand how companies find and develop new-product ideas.
• Learn the steps in the new-product development process.
• Know the stages of the product life cycle.
• Understand how marketing strategies change during the product’s life cycle.

 

 

Objectives

Microsoft 

 

• $50 billion in profits over 27 years
• Early new product development relied heavily on copying the competition
• $4.2 billion annually invested in R & D

 

 

• Innovation is critical to Microsoft’s future success
• Much of R & D efforts are Internet related
• Many new products and services are in development 

 

• New Product Development
• Development of original products, product improvements, product modifications, and new brands through the firm’s  
  own R & D efforts.

 

 

Definition

New-Product Development 
Strategies

 

Original

Products

 

Product

Improvements

 

Product

Modifications

 

New

Brands

 

Acquired

Companies

 

Acquired

Patents

 

Acquired

Licenses

 

Strategies for Obtaining New Product Ideas

Concept

Development

and Testing

Marketing

Strategy

Business

Analysis

Product

Development

Test

Marketing

Commercialization

Idea

Generation

Idea

Screening

 

New Product Development  
Process

• New Product Development Process:
• Stage 1:  Idea Generation
• Internal idea sources: 
• R & D
• External idea sources:
• Customers,  
  competitors,  
  distributors, suppliers

 

 

New Product Development Strategy

3M’s corporate culture encourages, supports, and rewards new product ideas and innovation  

Using the Web to Solicit Product Ideas  
Procter and Gamble  

 

• To see how P&G solicits ideas from customers, visit the Procter and Gamble home page, click on the Resources and Offers button, then select the Share Your Thoughts listing.

 

 

• Procter & Gamble

 

• Many companies have systems for rating and screening ideas which estimate:
• Process to spot good ideas and drop poor ones as soon as possible.
• Market Size
• Product Price
• Development Time & Costs
• Manufacturing Costs
• Rate of Return
• Then, the idea is evaluated against a set of general company criteria.

 

 

New Product Development Process 
Step 2.  Idea Screening  

1.  Develop Product Ideas into

Alternative

Product Concepts

2.  Concept Testing - Test the

Product Concepts with Groups

of Target Customers

3.  Choose the Best One

 

New Product Development Process 
Step 3.  Concept Development & Testing 

 

Part One Describes Overall:

Target Market

Planned Product Positioning

Sales & Profit Goals

Market Share

 

Part Two Describes Short-Term:

Product’s Planned Price

Distribution

Marketing Budget

 

 

Part Three Describes Long-Term:

Sales & Profit Goals

Marketing Mix Strategy

 

 

 

New Product Development Process 
Step 4.  Marketing Strategy Development 

 

Marketing Strategy Statement Formulation

 

 

Business Analysis

 

Review of Product Sales, Costs,

and Profits Projections to See if

They Meet Company Objectives

 

If No, Eliminate

Product Concept

If Yes, Move to

Product Development

 

New Product Development Process 
Step 5.  Business Analysis 
Step 6. Product Development 

• Computer modeling is being used to aid in product design

 

 

BusinessNow

 

Sensable Video Clip

 

Daimler is currently road-testing its prototype NECAR 5 (New Electric Car)  

New Product Development Strategy

 

IRI BehaviorScan provides an in-market laboratory for testing new products and marketing programs

 

IRI BehaviorScan

 10- 17

 

Advertising

 

Packaging

 

Product

 

Budget Levels

 

 

Positioning

 

 

Distribution

 

Pricing

 

Branding

 

Elements that May be Test Marketed by a Company

 

Test Marketing is the Stage Where the Product and Marketing Program are Introduced into More Realistic Market Settings.

 

New Product Development Process  
Step 7. Test Marketing

 10- 18

 

New Product Development Process 
Step 7.  Test Marketing

 

 

 

Standard

Test Market

 

Full marketing campaign

in a small number of

representative cities.

 

 

 

 

Simulated

Test Market

 

Test in a simulated

shopping environment

to a sample of

consumers.

 

Controlled

Test Market

 

A few stores that have

agreed to carry new

products for a fee.

 10- 19

 

Where is a good test market?

 

I. Factors to consider

- Size

- Demographics

- Isolation from other cities

- Media availability and cost

- Retailer support

 

2. Popular cities

- Big cities: Detroit, St. Louis, Columbus, Philadelphia

- Small cities: Nashville, Jacksonville, Toledo, Wilmington

 10- 20

 

New Product Development Process 
Step 8.  Commercialization

 

When?

 

Where?

 

To

Whom?

 

How?

 

Commercialization is the Introduction of the New Product into the Marketplace. 

LIFE IS SHORT AND THEN YOU INTRODUCE A NEW PRODUCT

 

Product lifetimes are shrinking, as competitors pressure innovators by offering imitations of successful, high-margin products.

Panasonic now replaces electronic consumer products on a 90-day cycle (with older models going to discounters)

the big Japanese car makers are aiming to offer new models every two years.

(from the New York Times)

 10- 22

 

Speeding Up Development

 

Step 1

 

Step 2

 

Step 3

 

Step 4

 

Step 1

 

Step 2

 

Step 3

 

Step 4

 

Sequential

 

Simultaneous

• Thanks for Listening

 

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