Managing a Business/Marketing manage ment
Kindly give me answer of these questions as soon as possible.
Q.1) Define term “Marketing Management” discuss the elements of Market Environment? (10 Marks)
Q.2) Define the term Product Management? Explain how New Product Decisions are made? (10 Marks)
Q.3) What is Customer relationship Management Explain its feature and nature? (10Marks)
Q. 4) Explain the nature and feature of Marketing research and Information Systems? (10 Marks)
Q.5) What is Market Measurement and Forecasting? (10 Marks)
Q6) What is Segmenting and Targeting the Market? (10 Marks)
Q7) What is Advertising Management? Explain the concept of Sales Promotion and Personal Selling?
Q8) Write a short note (any two) (10Marks)
a) Brand Equity
b) Global Marketing
c) Direct Marketing
d) Pricing decisions
HERE IS SOME SOME USEFUL MATERIAL.
SOME ANSWERS HELD BACK DUE TO SPACE CONSTRAINT.
PLEASE FORWARD THESE BALANCE QUESTIONS TO MY EMAIL ID
I will send the balance asap.
Q.1) Define term “Marketing Management” discuss the elements of Market Environment? (10 Marks)
successful marketing management
THE NECESSARY TASKS ARE
-SOUND UNDERSTANDING OF THE MACRO ENVIRONMENT.
-SOUND UNDERSTANDING OF THE INDUSTRY
-SOUND UNDERSTANDING OF THE COMPETITION
-SOUND UNDERSTANDING OF THE INTERNAL ENVIRONENT
-SOUND UNDERSTANDING OF THE RESOURCES REQUIREMENT
-SOUND UNDERSTANDING OF THE POLICIES REQUIRED.
A successful marketing manager manages effectively the marketing and sales through management of
KNOWLEDGE OF THE MARKETING JOB SCOPE
Develop, direct and control the sales and marketing business strategies and activities of the organisation to achieve revenues, sales and profit targets.
Direct the activities of sales and marketing for the achievement of short and long term business objectives, increased profit, and market control.
Establish and co ordinate the sales and marketing objectives, policies and programmes within the context of the overall corporate plan and, where appropriate, recommend standards and set targets and quotas.
Prepare, or arrange for preparation of the budgets, reports and forecasts and ensure they are presented in a timely manner to the Chief Executive.
Appraise the activities of the staff according to overall sales and marketing strategies. Monitor and evaluate the performance, and the efficiency of staff and procedures.
Co ordinate subordinate staff to optimise the use of human and material resources to achieve goals. Consult with subordinate staff and review recommendations and reports.
Direct the preparation of operational matters including market research, advertising, promotion, distribution, pricing and selling.
Direct sales activities by setting product mix, geographical sales areas and customer service standards.
Control and moriitor sales methods, key customer strategies and arrangements by recommending prices and credit arrangements.
Direct and control marketing by planning and running advertising campaigns and promotional activities, product management and market analysis and research.
Monitor customer service, invoicing, payments and administration costs.
Direct the development of initiatives such as new products, new marketing techniques, new advertising campaigns, incentive bonus schemes and the dropping of unprofitable products.
Maintain necessary contact with major suppliers, key customers, industry associations and government representatives to achieve the objectives of the division.
Select, or approve the selection and training of senior staff. Establish lines of control and delegate responsibilities to staff.
Ensure all the activities of the sales and marketing group comply with relevant Acts, legal demands and ethical standards.
SOUND UNDERSTANDING OF THE MARKETING SUBFIELDS
AS SHOWN BELOW:
*Importance of Marketing to Strategic Management and the Organization Success.
* strategic marketing management
*Understanding the Marketing and Competitors.
* marketing research.
*The importance of knowing Buyer Behavior.
*organizational buyer behavior.
*Strategic market Planning
* marketing planning.
*TRADE MARKETING MANAGEMENT
*developing a marketing plan.
*executing/implementing a marketing plan.
*New Product Development & Strategy.
*new product development process.
*new product commercialization.
*Product Pricing Considerations and Approaches.
*Marketing Decision Making
*SELF SERVICE MARKETING
The market environment is a term that is used to collectively identify all the elements that have some impact on the actual performance of a market. This includes events and factors that occur within the context of the market itself and also any elements that are based outside the market. The idea behind defining the market environment is to understand what forces are exerting some amount of influence in the marketplace and understand why and how a market reacts to those forces in certain ways.
In understanding the market environment, it is important to consider varying factors that shape the actual movement of the market. Typically, these factors are identified as being either microenvironment or macroenvironment in type and nature. While considering each factor in turn, the process also calls for understanding how all factors work in tandem to create the end effect on the marketplace.
The microenvironment aspects of the market environment typically focus on internal elements related to companies and how they perform in the marketplace. Factors like the corporate structure and organization, the distribution of resources in the operation, and even the policies and procedures that govern interaction between owners, managers and employees are considered as part of this assessment. Along with the characteristics and day-to-asspociated with the pday operational processes of the company, factors such as the working relationships with vendor partners, comparisons with competitors, and the general public perception of the company and its products will all play a role in the current status of the market environment.
Along with microenvironment factors to consider, there are also factors that are classified as macroenvironment. Here, the focus is on such issues as the political climate in which the products are produced and offered for sale, governmental legislation that affects how goods are produced and sold, and even the impact of current economic conditions on the ability of the company to remain competitive. The concept of a macroenvironmental factor also has to do with the level of consumer confidence that the products enjoy and how that confidence translates into sales.
Understanding the market environment as it relates to a given company requires not only identifying all known factors but also having some sense of how those factors blend together to create the setting in which the company must operate. By having an idea of how all known factors come together to create today’s business climate, it is easier to consider the potential for different market movements in the future, based on the ebb and flow of the influence of different elements. By accurately assessing where the market environment stands today and using that information to project where the market is going tomorrow, the business can make changes in procedures, production levels, or even marketing strategies in order to meet those future challenges and ultimately continue to generate an acceptable level of revenue.
Cultural and Social Factors
Cultural and social factors influence the type of customers you target, the range of products you can offer, and the way you communicate with the market. Cultural and social influences shape a customer’s preferences and ways of doing business, so it is important to understand and respond to the factors. Certain colors, for example, have positive or negative significance for different cultural groups, so your products and packaging must reflect those preferences.
Political and Regulatory Environment
Your marketing strategy must take account of the domestic political and regulatory environment. Politicians and regulators may wish to impose restrictions on certain industries to protect consumers, for example. They may take action to increase competition, potentially opening up your existing market to new competitors. Your products must comply with any health, safety and other type of legislation that relates to your industry.
Prevailing economic conditions in the country have a direct impact on your marketing program. During a recession, for example, consumers and businesses have less to spend, reducing demand for many types of products and services. Products that offer high value for the price will have a greater appeal during difficult economic conditions. Economic prosperity provides a better environment for marketing luxury goods or higher-priced versions of your product range.
The level of competition in your marketplace influences your marketing strategy and tactics. If you face strong competition in one sector, you can try to increase your share by improving the price or performance of your products. Alternatively, you may find it easier to withdraw from a highly-competitive sector and focus on other sectors where you have a stronger competitive advantage.
The media infrastructure in the domestic market determines your options for communicating with customers and prospects. Depending on your product and your target audience, you will benefit from a wide choice of magazines, newspapers, and television and radio stations, enabling you to select the media that reach the greatest number of prospects at the lowest cost.
To reach your domestic customers, you need a well-developed logistics infrastructure. A strong network of retailers or distributors is important if you market your products through indirect channels. If you market your products throughout the country, a national logistics infrastructure of warehouses, distributors, and transport operators will help you to access your market easily.
The technology infrastructure influences the domestic marketing environment in a number of ways. It can provide an important communication channel, enabling you to market your products through a website or via email. If you supply digital products or services, you can use the Internet to distribute them.
Internal environment: the internal environment is concerned with the controllable variables. Controllable variables are categorized into two groups, they are; the strategy variables and unmarketable variables. External environment: the external environment is concerned with the uncontrollable variables. These variables are called uncontrollable because the marketing manager cannot directly control any of the elements. The marketing manager is left with the option of adapting to the environment by prompt observation, analysis and forecasting of these environmental factors. The external environment can further be divided into two components, the micro environment and the macro environment.
The elements that fall under the micro environment consist of forces or factors in the firm's immediate environment that affect the firm's capability to perform effectively in the market place. These forces are suppliers, distributors, customers and competitors. Let us discuss each of the variables in details.
Suppliers are business customers who provide goods and services to other business organizations for resale or for productions of other goods. The behavior of certain forces in the suppliers can affect the performance of the buying organization positively or negatively. The critical factors here are the number of suppliers and the volume of suppliers to the industry. An audit of the suppliers will enable us to appreciate their strength and bargaining power, which the suppliers hold over the industry as a whole. The answers to the issues concerned have the potentials to affect the capability of firms in the industry to effectively deliver need-satisfying goods and/ or services. The trend today is that buyers attempt to persuade the supplier to provide exactly what the firms want. This process is known as "reverse marketing".
Customers are those who buy goods and/ or services produced by the company. In a purchase chain, different people play significant roles before a purchase decision is made. The various influences must be understood. The customer may be the consumer of the products where he/she is the user. The critical factor here is that needs and wants of consumers are not static. They are fast changing. The changes in the preferences of the consumer create opportunities and threats in the market. The changes called for the marshaling of separate strategy to either fit into windows of opportunities or survive the threats in the market. A good knowledge of consumers' behavior will facilitate the design and production of goods and services that the customers need and want, and not what they are able to produce.
A competitor is a firm operating in the same industry or market with another firm. The consideration here is that, Firm A produces a substitute to that of firm B (industrial approach) or firm A and firm B seeks to satisfy the same customer need (market approach.
• 3. Elements of the Marketing Environment Internal / organisational environment Operational/micro External / Macro
Internal environment status Corporate Culture Staff Relationships Resource Constraints Internal Environment Behavior in dealing with the environment
Staff Relationships Relationship among the staff affects the operations of the organisation Management should develop a conducive environment to develop staff relationships Employees should not convey a negative image of the organisation to external sources
Staff members The message that is conveyed by staff to others ( third parties) have a big impact rather than the paid advertisements of the organisation Members of the public consider staff members as the authoritative and they are far more likely to believe what staff members say Therefore an organization must do its internal marketing well to inform the company’s policies, and obtain the commitment and loyalty of the staff Staff is paid salaries by the organisation and staff should act to safeguard the organisation’s interest for their own benefit too.
Organizational Structure An organisation in general will have two structures Formal Structure ( As per the organizational charts who is on the top of the hierarchy, what are the functional departments and who heads them and what they do and how many positions are under them, who is responsible for what and whom is under whom)
Informal structure It cannot be shown on an organisational structure formally but there are many informal structures in organisations Friendships, alliances among staff members who go in the bus or train together, who take lunch together, whose wives or family members are friends, who are from the same town or village etc. These relationships are very strong and it could influence for positive and negative aspects in an organisation
Corporate culture Culture is a set of shared values, rules, and perceptions in a given society. There are such cultures in organisations too This is called in a company “ the way we do things around here” It has a powerful influence on the actions and behaviors of the members of the staff It is not an easy task to change the organizations culture if it is not conducive for an efficient operation
Resource Constraints All organisations operate within a limited amount of resources Men. Material, Money, Machines and Technology are the limiting resources Organisation should use systems where they could get the maximum out of the existing resources The effective and efficient way of adopting resources is the key to success.
Micro Environment Micro environment is much closer to the marketer than the macro environment It directly deals with the operational environment It comprises of Suppliers Intermediaries Competitors- Direct and Indirect Customers of a business/marketer Publics
Operational/ Micro Environment Micro Environment Intermediaries Competitors Suppliers Customers Publics
Suppliers Suppliers are called the “ Supply Chain” They could be the suppliers of all the materials and utilities to the marketer to make its value proposition ( product) to the market – machines and plants, raw materials, components, stationery, electricity, water, gas, other services, advertising agencies, consultancies, etc Company cannot survive without suppliers Marketers should study about the suppliers capacity, problems to have a good flow of supplies
Intermediaries Marketing intermediaries- transport and logistics, warehousing, dealers, distributors, wholesale and retail network ( more than 160,000 retail shops for FMCGs) The capacity and the efficiency of the intermediaries are very important for a marketer to serve its customers eg. Walls case They not only distribute but also stock, advertise, provide credit, after sales services, break the bulk, provide information
Competitors Marketer is not alone in the market. Every action of the marketer has a reaction from the competitors Knowing the competitors, their capacity, ability, future moves, structure and operational systems, objectives, strategies and tactics, will provide so much of ammunition to the marketer to face the challenges in the market place. Simply a SWOT Analysis of Competitors is needed
Customers Customers are the most important element in the micro environment They can be individuals or organizations A persons who makes the decision to buy the product is called the customer and the person who consumes the product is called the consumer When customer and the consumer are different the marketer have to consider the needs of both Many times customer and the consumer would be the same. Marketer should study the constantly changing needs of the customer and fine tune his value proposition accordingly to satisfy/delight the customer.
Publics Publics is any group that has an actual or potential impact on an organisation’s ability to arrive at its objectives Financial Publics- share holders, banks and other finance companies Local Publics- Local groups and individuals Media Publics- newspapers, magazines, radio and TV Government Publics- all govt rules and regulations General Publics- General publics attitude towards companies operations and products
Macro (External) Environment External environment is the elements in the periphery of the business. These elements are in the larger picture and the marketer has no control over them These elements are very important and have a tremendous influence on the operations of the marketer Marketer has to take all these factors in to consideration
A list of main External Environment factors (PESTEEL) Political Economic Social and cultural Technological Ecological Ethical Legal
Political and Legal Environment Ploitical Political stability War and Peace Internal conflicts and struggles Strikes and stoppage of work Globalisation and opening up of markets Political affiliation and support to governments
Economic Environment General economic condition of the world and the country Income distribution - Employment levels and its structure Prices and inflation Boom and recession Balance of trade – surplus / deficit Exchange rate and fluctuation Stock market Banking and Credit Import and export duties Saving and investment
Social and Cultural Environment Society consists of large group of people with shared customs and laws Culture consists of art, thought, and customs, religions, practices of a society at any given time Any society will have its own culture. May be unique or shared or mixed with other cultures. Peoples relationships and behavior will have a major influence of the societies beliefs, values and norms There could be different cultural groups within a society
Some of the socio cultural factors can be listed as follows Demographic factors- population structure- age, family size, ethnicity, income, Social Cultural behaviors- languages, religious beliefs, mythology, gender roles, gift giving habits, Social responsibility and ethics The impact of war Role of women in society Attitudes towards credit Concern about health
The socio- cultural affect will influence peoples attitudes towards buying patterns, living patterns, dress codes, fashion, sports, savings, social behaviors, music, credit, marriage, and many areas of life styles. Marketers have to be aware of them to understand the customers and their behavior
Technological Technology is changing always Marketers have to be vigilant about it and adapt to change There are so many innovations taking place in the world. Some innovations make products and processors improve dynamically and some times they even replaces the old products and make them obsolete
Ecological Environment People have considered planet as a bundle of raw materials that could be used to satisfy the needs of the current generation That has made the exploitation of resources without any barriers As a result we have lost lot of resources and the bio diversity Main ecological issues are: Resource Depletion- Pollution Concerns- Health Related Concerns Therefore the marketers have to be very careful of the natural environment in their marketing activities such as production processors, usage, consumption and disposal Marketers should have an environment friendly attitude
Ethical Environment Ethics are moral principles that define right or wrong behavior in marketing Laws are promulgated to safeguard most basic ethics However, there are many other ethics that marketers should adhere to although they are not in existence in the form of law Marketers should have their own self regulatory ethical standards if they are to become good corporate citizens of the society
Some important ethical issues Product issues : honest claims about effects of products, use non hazadous raw material and component, additives, declare what is used, indicate nutritious values ( specially food items) and side effects ( specially drugs) Pricing issues : price fixing among competitors, predatory pricing ( pricing below cost to win over competitors) hiding or not divulging the operational cost or price of consumables, charging very high prices
Promotional issues ; deceptive or misleading advertising, bribery and commissions, unfair advertising, using sex excessively as a strategy in advertising Place issues : blocking distribution channels, extending payment of credit beyond the agreed terms, using underworld elements to obtain orders and block competition
Legal Criminal and Civil laws will govern many facets of society Especially marketers have to obey and respect them Commercial laws, Company laws employment laws, health and safety laws, Intellectual Property laws, Environment laws, directly affect the marketers, Consumer Protection Laws, Other Religious and Civil Society conventions, rights groups and practices also affect the operation of businesses.
Q.2) Define the term Product Management? Explain how New Product Decisions are made? (10 Marks)
Product management is an organizational lifecycle function within a company dealing with the planning, forecasting, or marketing of a product or products at all stages of the product lifecycle.
The role consists of product development and product marketing, which are different (yet complementary) efforts, with the objective of maximizing sales revenues, market share, and profit margins. The product manager is often responsible for analyzing market conditions and defining features or functions of a product. The role of product management spans many activities from strategic to tactical and varies based on the organizational structure of the company. Product management can be a function separate on its own, or a member of marketing or engineering.
While involved with the entire product lifecycle, the product management's main focus is on driving new product development. According to the Product Development and Management Association (PDMA), superior and differentiated new products — ones that deliver unique benefits and superior value to the customer — are the number one driver of success and product profitability.
Depending on the company size and history, product management has a variety of functions and roles. Sometimes there is a product manager, and sometimes the role of product manager is shared by other roles. Frequently there is Profit and Loss (P&L) responsibility as a key metric for evaluating product manager performance. In some companies, the product management function is the hub of many other activities around the product. In others, it is one of many things that need to happen to bring a product to market and actively monitor and manage it in-market.
Product management often serves an inter-disciplinary role, bridging gaps within the company between teams of different expertise, most notably between engineering-oriented teams and commercially oriented teams. For example, product managers often translate business objectives set for a product by Marketing or Sales into engineering requirements. Conversely they may work to explain the capabilities and limitations of the finished product back to Marketing and Sales. Product Managers may also have one or more direct reports who manage operational tasks and/or a Change Manager who can oversee new initiatives.
• Product Life Cycle considerations
• Product differentiation
• Product naming and branding
• Product positioning and outbound messaging
• Promoting the product externally with press, customers and partners
• Conducting customer feedback and enabling (pre-production, beta software)
• Launching new products to market
• Monitoring the competition
• Identifying new product candidates
• Gathering the voice of customers
• Defining product requirements
• Determining business-case and feasibility
• Scoping and defining new products at high level
• Evangelizing new products within the company
• Building product roadmaps, particularly technology roadmaps
• Developing all products on schedule, working to a critical path
• Ensuring products are within optimal price margins and up to specifications
P0 - start of planning
P1 - roadmap complete
P2 - product drivers approved
P3 - product concept approved
P4 - product development kick-off complete
P5 - design & requirement freeze
P6 - Go-to-market strategy approved
P7 - Launch preparation complete
P8 - Launch
P9 - Ramp-up complete
P10 - Mid-cycle update
P11 - Ramp-down complete
Now lets look at the product management activities in each of these milestones.
P0 - start of planning
P0 is not so much of milestone in the sense that something is complete, but rather a milestone in the sense that something gets started.
Many companies develop products in a portfolio on a cyclical basis. This leads to a document called the Product Roadmap. The roadmap is driven by financial and other business drivers. Usually these drivers are financial in nature, but they may be overridden by other business drivers such as a need to win market share. During this first phase, it is essential to identify and quantify the business drivers.
P1 - roadmap complete
The roadmap maps out a draft product portfolio with price points, timing and estimated product volumes. Using these data points, we can forecast the future revenue of the product portfolio and adjust it to the business drivers identified. Usually, your business analysts will be able to tell you the relationship between price and volume (the price elasticity) in your market.
Also, a roadmap does not have to be very detailed at this point. It can be as simple as a set of stars on a 2 dimensional grid, where time is the horizontal axis and price the vertical axis.
Especially in product portfolio bases industries the roadmap will often aim to maintain a SKU. For example, a car manufacturer typically would not stop selling it’s mid-size SUV to launch a compact car. Instead, it aims to renew it’s offering in every product category it has.
The roadmap should be approved at least by the head of product management, but potentially all the way up to the CEO and CFO, so they understand the product roadmap’s contribution to their growth goals.
P2 - Product drivers approved
After the roadmap has been approved, we assign individual products on the roadmap to individual product managers. The first task at hand for the product manager is to analyze what the drivers for a product in the assigned price point and timing are.
Typically, this involves understanding which customer segments buy at this price point and what triggers them to purchase the product. For example, a lower priced product may typically be bought by cost conscious consumers who value durability, whereas a higher priced product may need to have strong design and premium materials to please it’s purchasers.
Understanding these drivers usually means that the product manager works with market researchers and competitive intelligence analysts.
At this point the product manager should also update the business case in order to identify any potential issues between the expectations on the roadmap and the addressable market based on product drivers. The product drivers should be approved at least by the head of product management, but ideally also by senior marketing and sales staff.
P3 - Product Concept Approved
In the time between P2 and P3, the product manager is engaged in a highly creative process with product designers, interaction designers and others to come up with alternative product concepts that meet the product drivers. It is important at this stage to also estimate the cost of each concept, because this feeds into the business case. Your product development team and sourcing team can help you with with the cost estimates.
Eventually, you’ll probably end up with 3 to 5 viable concepts. If you choose to do so, you can test these competing concepts in focus groups. Several agencies specialize in organizing focus groups and they will keep your brand name anonymous. In some industries, like telecoms in the U.S. you also want to get the input from your channel, in this case the wireless carriers to make sure they will range the product.
The product concept needs to be approved by the head of product management, preferably with input from marketing and sales. This helps getting marketing and sales on board so they don’t abandon the product later saying it’s unsellable and if only they would have been involved in the process.
P4 - Product Development Kick-off Complete
After the product concept has been approved, the actual product development gets kicked off. An R&D program (or project) manager will be assigned and he/she will pull together an engineering team.
At this time the product manager has an important role in communicating with the engineering team about the product that they will develop. The engineering team may have proposals for improving the product too, but beware of improvements that drive up costs or change the product positioning away from the target consumer.
In many companies there is some struggle over reporting lines and product ownership at this stage. Does the program manager report to the product manager or the other way around? Does the program manager own the business case or the product manager? My advice is to make sure the product manager and program manager work closely together and do not get into this battle.
Typically, the program manager should be able to deliver a draft schedule for the product development program, so make sure it matches with the roadmap timing. The main goal for this milestone is to allocate the resources needed for product development.
P5 - Design and Requirement Freeze
After P4 and possibly a little earlier, the product manager should be working on a product requirements specification. This specification is either captured in a document or in a requirements management tool. At the same time, the product design evolves to address manufacturing issues, accommodate internal components, meet regulatory requirements, etc.
The requirements specification will be analyzed by the engineering team for viability, cost and schedule impacts. Engineering should provide feedback on the requirements. For problematic requirements, the product manager is responsible for weighing cost, schedule impact and competitiveness. If the product manager cannot make the decision himself/herself, the product manager should escalate the decision making with a recommended way forward.
Once the design is final and the requirements are fully understood and agreed upon with engineering, it is time to freeze both. This means no further changes are allowed unless a strict change request management system.
The head of product management should decide on this milestone, testing the current concept state is in line with the product drivers set out in P2. Input is also required from the head of R&D to sanitize and commit to the program manager’s plan.
P6 - Go-to-market strategy approved
At this time product development is underway and it is time to turn the attention to how we are going to roll the product out in the market. The product manager will work with sales and marketing to identify and prioritize channels to market. Due to limited resources or limited product availability during manufacturing ramp up, it is often unlikely that the product will be available in all channels at once. Staggering by geographic area or market channel may be needed to address these constraints.
Such staggering may also impact the needs for marketing collateral and potentially the priority of the product development requirements. For instance, you may have decided to launch the product in the U.S. first and delay the Canadian launch by 3 months. The impact is that you probably want your English and Spanish language variants ready before the French language variant of your product and marketing collateral.
This milestone should be approved by the head of product management, the head of sales and the head of logistics. It is important to identify discrepancies between the business driver expectations set at P1 (roadmap complete) and the go-to-market plan.
P7 - Launch Preparation Complete
The main goal here is that products leaving the factory have a place to go and are supported by a marketing campaign. Marketing materials and ad campaigns need to be prepared and ready to go. Sales channels need to be prepared. Retails staff (if applicable) needs to be trained on the benefits of the product. Space needs to be allocated on store shelves. The logistics chain needs to have been set up. Support centers need to be prepared to deal with questions about the new product. Warranty centers need to be ready to receive faulty products and repair or replace them.
When all this is set up, launch preparation is complete. This milestone should be approved by the executive in charge of each functional area.
P8 - Launch
The launch preparation is complete, you are waiting for the first products to hit the market. Now it is time for all hands on deck to make sure all systems and procedures work.
P9 - Ramp-Up Complete
After launch, the program team started executing the go-to-market plan. At this milestone you product is available through all planned channels and in all planned markets.
P10 - Mid-Cycle Update
It is common for products that are available in the market to get a mid-cycle update. In the case of cars, it is often some reworked body panels, with consumer electronics it may be a software update, color changes or bundling with different accessories.
Mid-cycle updates need to be planned in a similar way as the all the steps described until here, but are obviously much smaller in scope.
P11 - Ramp-Down Complete
For most products there is an end to the economic lifecycle and eventually keeping it available in the sales channels costs more than the revenue it generates. Before the product hits that point, it should be ramped down and ideally be replaced with a next generation product.
In the ramp-down process, there are quite a few complexities. First of all and with the most financial risk is inventory management. The sales channel, nor the manufacturing chain wants to end up with unused inventory they paid for. The product manager works with sales to estimate end of life sales volumes and works with logistics to make sure all inventory gets sold out. The product manager also works with marketing to make sure marketing campaigns are ramped down on time. Ads are stopped, printed materials recalled etc.
Once the product is ramped down, it is time to evaluate the product performance to see if it contributed as much to the company’s bottom line as planned. Each functional discipline needs to create a lessons learned document that can be used for process improvement.
NEW PRODUCT INTRODUCTION
SEARCHING FOR OPPORTUNITY
Information that can help to shape the development of the
NEW product plan.
SEARCHING FOR OPPORTUNITY
Information that can help to shape the development of the
INDUSTRY MARKET RESEARCH & ANALYSIS
WHAT IS THE MARKET SIZE/ POTENTIAL FOR THIS PRODUCT
SALES VOLUME AND TRENDS
By dollar volume and unit sales.
By specific product.
By geographic design.
By customer use pattern.
By manufacturer and marketer.
By buying power.
By distribution channel.
WHAT TECHNOLOGY WOULD BE REQUIRED TO MAKE THIS
By parts, raw materials, labor.
By patent barriers.
WHAT WOULD BE THE NATURE OF COMPETITION FOR THIS
By product specifications.
By product volumes.
By market share.
By end user.
By trade channel.
WHO ARE THE REAL POTENTIAL USERS FOR THIS
By CONSUMER use.
By geographic characteristics.
By pricing effects.
By alternative and substitute products.
By seasonal purchase.
OTHER AREAS OF RESEARCH
WHAT OTHER AREAS WOULD BE REQUIRED TO RESEARCHED?
OPPORTUNITY IDENTIFICATION RESEARCH
The process includes:
*Forecast rough volume and share.
*Perform a risk ratio analysis.
*Conduct a preliminary feasibility study using secondary data and professional expert opinion no prototypes or no trial runs.
*Assess competitive reactions, exclusivity, regulations, protections and constraints.
*Look at exceptional technical hurdles.
*Consider legal and policy issues.
CONCEPTION RESEARCH – PHASE 2
This phase translates market facts into product concepts and customer positioning communication, prior to extensive research and development. The objective is to create and to refine a variety of appropriate product concepts in the form of customer communications, which may then be screened down to a workable number of the most appealing ones that may be carried forward into the prototype modelling phase.
1 . INPUT RESEARCH
This is a backgrounding step, often required where "hands on" experience, technical education, patent and literature review, as well as special consultant professionals, are needed for complete understanding of the opportunity area.
Ideation is the generation of large quantities of unconstrained possibilities, utilising a variety of stimulus techniques brainstorming, group discussion, etc.
3. IDEA FORMS
This is the shaping of concepts into single minded, clear communications. The goal is a clear communication that neither goes beyond nor falls short of a real world summary statement of each concept.
4. PRE SCREENING CONCEPTS
Broad brush selection methods are applied to eliminate or improve concepts that are difficult to target.
5. SCREENING RESEARCH
This process rates many concepts rapidly individually
and in relationship to each other.
At this phase, preliminary concepts have survived several selection steps. Now it is necessary to bring the narrowed number of proposed new products closer to reality in the form of prototype products and prototype communications. The target customer prospect should see the concept "in the round" as closely as is timely and economically feasible. Prototype modelling accomplishes the development of such stimulus materials.
1 . DESCRIPTORS
This step involves the product category and preliminary brand name development.
This covers all aspects of the product and its communications. Included are:
Brand name and description.
Communications theme development.
Prototype of communications.
DEVELOPMENT - PHASE 4
This phase of product development encompasses a number of different activities.
1 . VITRO TRIALS
In house double check of the prototype in the research and development.
2. PILOT PRODUCTION
This involves a small scale replication of mass production. It helps to debug the system and devise productions controls, systems and equipment design. it is basic to determining on stream cost estimates.
3. SCALING UP (COMMERCIALISATI ON)
MARKETING - PHASE 5
The marketing plan should include the following elements:
Sales and distribution.
Start up plan.
Finance and production requirements.
TEST MARKETING PHASE 6
Awareness, attitude, usage.
Finally comes the moment of truth the major introduction.
Expanding the sales territory.
Close monitoring of performance vs. plan.