Banach Marketing Mix Product Development

1. Idea Generation 
2. Concept Testing
3. Product Development
4. Market Testing
5. Product Launch
6. Evaluation of Results

Development of new product ideas

- Internal R&D

- R&D Consortia

- Licensing (Buy Ideas)

- Brainstorming

- Competitors’ Products

- Customer Input

Testing the new Product idea among a set of potential customers.

Concept - Brief written descriptions of the products working principles, might include visual images of the product. 

Development of prototypes and the Product.

Prototype

The first physical form of a new product. 

Alpha Testing

Alpha tests occur in the firm’s R&D department

Beta Testing.

Uses potential consumers, who examine the product prototype in a “real use”

Testing the actual Products in a few testmarkets.

 Premarket Test

- A small group of potential consumers will try and then continue to use the product before coming to market.

Test Market

Introduces the offering to a limited geographical area prior to a national launch.

Full scale commercialization (vermarktung) of the Product.

All aspects of the Marketing Mix

Promotion - communications strategy

Place - quantity of products available,

Price - get the price right

Timing - may be important

Analysis of the performance of the new product and making appropriate modifications.

1.ISatisfaction of technical requirements

2. Customer acceptance

3. Sales and profits. 

The process by which the use of an innovation spreads throughout a market group, over time and over various categories of adopters.

1. Innovators

- Buyers who want to be the first on the block to have the new product or service. These buyers enjoy taking risks and are regarded as highly knowledgeable. 

2. Early Adopters

- Early adopters don’t like to take as much risk as innovators but instead wait and purchase the product after careful review. Opinion leaders for particular product categories. 

3. Early Majority

- Few new products can be profitable until this large group buys them. They dont like to take much risk, wait until “the bugs” are worked out. 

4. Late Majority

- When they enter a new product market, the product has achieved its full market potential. Sales may already be in decline.

5. Laggards

- Like to avoid change and rely on traditional products until they are no longer available. They may never adopt to a product.

Trialability

- Easy to try Products. They will generally diffuse more quickly than those that are not.

Observability

- the diffusion process speeds up, when products are easily observed. (Mobiles)

Compatibility

- Compatibility with people’s past behavior, their needs, and their values.

Relative Advantage

- If a product is better than substitutes, then the diffusion will be relatively quick. 

- Establish a completely new Markets

- Change the rules of competition and consumer Preferences

- Have the advantage of first movers

- Establish a commanding and early market share

In their life cycles, products pass through four stages:  

Introduction Stage

- Sales: Low

- Profits: Negative or low

- Consumers: Innovators

- Competitors: One or Few

Growth Stage

- Sales: Rising

- Profits: Rapidly Rising

- Consumers: Early Adopters & Early Majority

- Competitors: Few but increasing

Maturity Stage

- Sales: Peak

- Profits: Peak to decline

- Consumers: Late Majority

- Competitors: High Number of Competitors

Decline Stage

- Sales: Declining

- Profits: Declining

- Consumers: Laggards

- Competitors: Low Number of Competitors