Bradley University 3

Overview of Business Process Steps

  • Content testing leads to Business Analysis, which leads to Product Development, followed by Testing and Commercialization.

Evaluating New Product Ideas

  • When evaluating new product ideas, consider:

    • Corporate direction

    • Time window

    • Use of resources

  • The step involved in this evaluation is Screening, not Business Analysis.

Business Analysis

  • Focuses on financial aspects:

    • Cost of development

    • Expected selling price

    • Anticipated market demand

Types of Products

Convenience Products

  • Bought frequently with minimal effort.

  • Example characteristics:

    • Typically lower cost

    • Minimal time investment

Shopping Products

  • Require more time and effort to compare.

  • Characteristics:

    • Comparison shopping

    • Evaluating different options

Product Mix vs. Product Line

  • Product Mix: The total range of products offered by a company.

  • Product Line: A set of related products within the same category.

Branding Overview

  • Brand: The overall identity of a product; includes various aspects such as name, packaging, and associated symbols.

  • Brand Name: The verbal or written identifier of the brand.

  • Brand Mark: Visual representation associated with the brand (e.g., logo).

  • Trade Name: The official legal name of the company.

  • Trademark: Legally registered elements of a brand's identity.

Brand Positioning and Equity

  • Brand Equity: The financial value derived from the brand itself. Measured by the premium price willing to be paid for a brand over physical assets.

  • Sources of Brand Equity:

    • Brand name awareness

    • Perceived brand quality

    • Brand associations

    • Brand loyalty

  • Importance of creating brand equity to enhance marketing communications and customer relationships.

Naming Conventions

  • Importance of memorable product names and brand extensions:

    • Brand Extension: Using an existing brand name in a new product category.

    • Line Extension: Adding a new product within the same category.

Co-Branding and Licensing

  • Co-Branding: Collaborative marketing of two or more brands on a single product.

  • Licensing: Allowing another company to use your brand name for mutual benefit.

  • Private Branding: Store brands sold at retail outlets, often priced lower than manufacturer brands (e.g., Kirkland Signature at Costco).

Packaging as Part of Product Strategy

  • Significance of packaging includes:

    • Communication of the brand identity

    • Usability and functionality

    • Promoting product through visual appeal

  • Examples of innovative packaging:

    • Customizable potato chip bags

    • Wine in cans with drinking straws

    • Baby formula packaging designed for ease of use

Product Life Cycle

  • Phases: Introduction, Growth, Maturity, Decline

    • Introduction: High costs, low competition, promotional emphasis to build awareness.

    • Growth: Increasing sales, entering competitive markets, differentiation becomes necessary.

    • Maturity: Optimizing existing products, introducing new features to retain market share.

    • Decline: Market shrinking, companies may simplify offerings or exit the market.

Product Adoption Process

  • Stages:

    • Innovators (3%): Early adopters of technology with financial flexibility.

    • Early Adopters (13.5%): Influencers setting trends.

    • Early Majority (34%): Seek validation before adoption.

    • Late Majority (34%): Value-focused, seek the lowest prices.

    • Laggards (16%): Resistant to change, often adopt last.

  • Factors affecting adoption speed:

    • Competitive advantage of new product

    • Compatibility with existing values and lifestyles

    • Observability and visibility in the market

    • Complexity of understanding the product

    • Trialability of the product

Conclusion

  • Product life cycle and adoption rates are intrinsically linked, highlighting the dynamic interplay between product design, market entry, and consumer engagement.