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.