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Q.1 What are the different stages in new product development?

Ans: the different stages in new product development 1. Idea Generation Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats), Market and consumer trends, company's R&D department, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or Ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features. Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase. Idea Screening

The object is to eliminate unsound concepts prior to devoting resources to them. The screeners must ask at least three questions: Will the customer in the target market benefit from the product? What is the size and growth forecasts of the market segment/target market? What is the current or expected competitive pressure for the product idea? What are the industry sales and market trends the product idea is based on? Is it technically feasible to manufacture the product? Will the product be profitable when manufactured and delivered to the customer at the target price?

1. Concept Development and Testing


Develop the marketing and engineering details Who is the target market and who is the decision maker in the purchasing process? What product features must the product incorporate? What benefits will the product provide? How will consumers react to the product? How will the product be produced most cost effectively? Prove feasibility through virtual computer aided rendering, and rapid prototyping What will it cost to produce it? Testing the Concept by asking a sample of prospective customers what they think of the idea. Usually via Choice Modeling.

1. Business Analysis o Estimate likely selling price based upon competition and customer feedback o Estimate sales volume based upon size of market and such tools as the FourtWoodlock equation

Estimate profitability and breakeven point 2. Beta Testing and Market Testing o Produce a physical prototype or mock-up o Test the product (and its packaging) in typical usage situations o Conduct focus group customer interviews or introduce at trade show o Make adjustments where necessary o Produce an initial run of the product and sell it in a test market area to determine customer acceptance 3. Technical Implementation o New program initiation o Resource estimation o Requirement publication o Engineering operations planning o Department scheduling o Supplier collaboration o Logistics plan o Resource plan publication o Program review and monitoring o Contingencies - what-if planning 4. Commercialization (often considered post-NPD) o Launch the product o Produce and place advertisements and other promotions o Fill the distribution pipeline with product o Critical path analysis is most useful at this stage

Q.2 Discuss the importance of SWOT analysis to develop effective marketing mix.

A marketing plan documents and maps out the key elements of a company's marketing strategy, which flows from the company's long-term strategic plan. Components of a marketing plan include an analysis of the company's strengths, weaknesses, opportunities and threat, also known as a SWOT analysis; market segmentation; and strategies to drive sales and profit growth in each of these segments. SWOT is an important foundational element of the marketing plan.

Facts

SWOT -- the internal strengths and weaknesses, along with the external opportunities and threats -- offers guidance for the marketing plan. Management can evaluate how to leverage the strengths to take advantage of opportunities and protect the company against threats. It also can take measures to remedy the weaknesses and prevent competitors from using them as opportunities. SWOT analysis synthesizes the information for managers to make informed decisions on marketing and advertising strategies.

Analysis

A marketing plan starts with an analysis of the company, customers, competitors, external partners and the overall economy. The company's strengths may include its financial position and cash balance, product quality and brand recognition. Its weaknesses may include an inability to attract qualified candidates due to tightness in the labor market. Its market opportunities may lie in foreign markets with emerging and growing middle classes. It may also find opportunities in local markets indirectly by taking advantage of financial difficulties faced by some of its smaller competitors. However, entry of new competitors and emerging new technological innovations may represent threats because they can alter customer buying habits. External partners, such as suppliers and regulatory agencies, and the overall economic environment must also be evaluated for potential threats and opportunities.

Segmentation

The division of a market into groups based on demographic and other factors is known as market segmentation. This allows advertising messages to be targeted specifically to maximize the sales opportunities in each segment. Using the SWOT analysis results, a company will know where the best opportunities are, including niche areas or specific demographic groups that might be underserved by its competitors. Similarly, it also will know potential weaknesses in its own product offerings that might be exploited by its competitors to gain market share and take steps to correct them.

Strategy

The four "P's" of a marketing strategy are product, price, promotion and place (distribution channels). Once again, SWOT analysis forms the basis of strategic choices. For example, product decisions are based on the market opportunities, the company's own internal research and development and manufacturing strengths, the availability of adequate financial resources, and the brand recognition. Pricing considerations include sales volume sensitivity to price changes and the impact of discounts and flexible payment terms. The strengths and weaknesses of the distribution channel are important considerations; also important to the marketing plan are the type and mix of channels -for example, retail or direct -- and the transportation and warehousing logistics. Promotion considerations include designing advertising campaigns based on a brand's strengths -- for example, value and quality -- and the timing of media buys.

Q.6 List the important differences between Consumer market and business markets.
The consumer market is all about selling products and getting the best revenue from that. So therefore, offers will be placed on products to make them more attractive for people to buy so that company gets the sales. The consumer market is also very competitive and this means that if you wish to be successful within it, you need to keep tabs on what the competition is doing and better them. The consumer market is all about making cheap produce and selling it on at a higher price to the general public to make a profit. The business market, however, is more difficult to define. The differences between it and the consumer market are mainly that the business market is less directly competitive, but at the same time you need to make sure your product, or shares, are attractive to the buyer. So it is more about promoting what you have to make buyers aware of it and why it is so good. The factors that influence consumer buying behaviour will be things such as the price of the product, and whether it is actually worth the price that it is being marketed at, the place at which it is being sold, because consumers often have favourite stores, and will look for a reputable name to buy from, and necessity. If the product is something that is needed rather than a one off or a novelty then you are more likely to sell it. The factors that influence business buying are more about the professionalism of the companies selling and their potential to keep providing good share prices are key factors. In the business market it is all about getting your name seen as reputable and knowing what is good to invest in at the time. In business you are more likely to need to impress a company than in consumer buying because the only judge is the consumer themselves.

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