CHAPTER NINE
Product Management
and New-Product
Development
For use only with
Perreault/Cannon/McCarthy
or Perreault/McCarthy texts.
© 2008 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
Product Decisions for Marketing Strategy Planning
(Exhibit 9-1)
Role of Product Management and New-Product
Development in Marketing Strategy (Exhibit 9-1)
CH 8: Elements of
Product Planning for
Goods & Services
The product life
cycle
• Life cycle stages
• Strategy planning
for stages
CH 9: Product
Management &
New-Product
Development
New-product
development
• 5 Step process
• Success factors
Managing brands
• Product
managers
Managing Products over Their Life Cycles
Total industry
sales
Total industry
profit (initially loss)
(Exhibit 9-2)
Product Life Cycles Should Be Related to Specific
Markets
Market
Definitions
Individual
Brands
•May not follow the
classic pattern
•Should be carefully
developed
•May be introduced
in market growth or
maturity
•Different markets,
different stages
•Not all brands are
equally strong
AND
•Contribute to the
length of the cycle
Product Life Cycles Vary in Length
Competitive
Advantage
Easy to Use
Some Products
Move Fast
Compatible
Can Be Tried
Easy to
Communicate
Planning for Different Stages of the Product Life
Cycle
Allocate
Sufficient
Money
Be Flexible
Consider the
Four Ps
Market
Introduction
& Growth
Competitors
May Help
Adoption
Anticipate
Speed of
Movement
Improve the Product or Develop a New One
Phasing Out Dying Products
Phase-out May
Be Necessary
Profitability
Product Line
Customer
Support
Don’t
Don’t Pull
Pull the
the
Plug
Plug So
SoQuickly
Quickly
Sales Decline
Can Be Profitable
An Organized New-Product Development
Process is Critical (Exhibit 9-4)
New Product Development: A Total Company
Effort (Exhibit 9-6)
Total Quality Management is Easier Said Than Done
(Exhibit 9-7)
Why Things Go Wrong (Exhibit 9-8)