Marketing management russ winer ravi dhar

New Development Process

Marketing Management

Running head: NEW DEVELOPMENT PROCESS

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PRODUCT AND PRICE ELEMENTS

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Oct 31, 2017

The new project we will be discussing will be bug repellant. This bug repellant s called Bug Be Gone. It is a bug repellant that is all natural and biodegradable. The ingredients for this product is made with certified oil blends of Vitamin E oil, Eucalyptus, and SPF 15 sunscreen. This repellant is not harmful to children and is safe for the environment. According to Dhar, Winer and Ravi (2013) New products are categorized into three categories; classically innovative products. These are also called new-to-the-world products because the firm has created a new-product category. You might separate these into two subcategories: truly new products that are revolutionary (e.g., the disposable diaper, the personal computer) and other new products that create new categories but are based on existing products, New-category entries. In this case, the product category already exists but the firm is just entering it. These are also commonly called new-to-the-company products . For example, Nike’s entries into various sporting goods categories (e.g., in-line skates) fit into this classification, and Additions to product lines or line extensions. These are new versions of existing products already marketed by the firm. Examples are new flavors, colors, or technical variations (see Chapter 7). The Crest Spin Brush is a good example of a line extension” (pg. 213). Bug Be Gone is considered new category entries. Bug repellant has been marketed by other companies but not marketed by our company. This company is the first to market this biodegradable bug repellant.

The new product development process for Bug Be Gone first started with an idea . As with any product, this product started off with first an idea. We wanted to be different from the other bug repellants already being marketed. We can say the idea is something like a vision that we want to eventually reach. Next, we need to research. Although we may have a great idea, we need to research to see who else has this type of repellant. What can we do to make our repellant different or unique? Then comes development. We need to develop the product that we desire so that we can make any modifications to the product so that we can come up with the finished product. After developing we will test. The product will have to be tested on consumers. We can test by allowing a small amount of consumers to try the product. If the product works and is successful, it is then we know it will be profitable for the market. The next step according to ProductLifeStages.com, the next step would be analysis: Looking at the feedback from consumer testing enables the manufacturer to make any necessary changes to the product, and also decide how they are going to launch it to the market. With information from real consumers, they will be able to make a number of strategic decisions that will be crucial to the product’s success, including what price to sell at and how the product will be marketed (para.5). Finally, once we have gone through the above stages, we can now introduce. Since we have gone through the entire process, we can now introduce Bug Be Gone to the market.

The new product launch strategy for this product is to find the objective, focus on the strategy, (target market, the competitors, and value proposition) planning the marketing mix. According to Dhar, Winer and Ravi (2013), “while products fail for all of the reasons, the implementation part of the launch is particularly important. The product has to be good, the target market has to be appropriate, a good reason to buy (value proposition) has to be established, the price has to be right, the product must be available, and a customer service organization needs to be established. Most importantly, people or organizations will not purchase a new product if they have not heard of it. Thus, many companies spend millions of dollars surrounding a new-product introduction with splashy advertising and public relations campaigns, extravaganzas in public arenas, and other programs intended to alert the public that the new product or service is here. The idea is to not only create awareness but excitement, word-of-mouth, and anticipation of owning” (pg. 237). We want to be able to focus on marketing a new product of bug repellant that not only is good and healthy to be used on the skin but also a product that is safe for the environment as well. We want to target men and women of all ages and children of all ages.

The pricing strategy we plan on using for this new product will be Variable/Dynamic Pricing Strategy. According to Lamb (2013), “price strategy defines the initial price and gives direction for price movements over the product life cycle” (pg. 344). This pricing strategy is ideal for our product because it allows for us to be able to offer our products via Amazon and Ebay. Using this strategy allows for our product to be sold at a price the consumer can afford. BusinessDictionary.com (n.d) states, “A pricing strategy in which the price of a good or service may vary based on region, sales location, date, or other factors. Variable pricing strategies adjust product prices to achieve optimal balances between sales volume and income per unit sold based on the characteristics of different categories of points-of-sale” (para.1).

Reference

BusinessDictionary.com, n.d. Retrieved from http://www.businessdictionary.com/definition/variable-pricing.html

Product Life Cycle Stages. New Product Development N.D. Retrieved from http://productlifecyclestages.com/new-product-development-stages/

Dhar, Russ Winer and Ravi. Marketing Management, 2013,VitalSource for Kaplan University, 4th Edition. Retrieved from http://online.vitalsource.com/books/9781269309646