Marketing class 3-7-2012

Blog for class on 3-7-2012
We covered chapter 10 this last week after taking the midterm. Chapter 10 talks about

Developing and marketing products. We first defined a new product as: A product new to the world, the market, the producer, the seller, or some combination of these. Then we discussed the categories of new products that are: 1- New-to-the-world, 2- New PRODUCT LINES, 3- Product Line Additions, 4- Improvements of Revisions, 5- Prepositioned Products, and 6- Lower-priced Products.

We also discussed the new product development process, and how at you do all of the steps it works like a cone and funnels it down to the new product. According to the book only 4.3 percent of all new products succeed.

Then we talked about why products fail

·         No discernible benefits

·         Poor match between features and customer desires

·         Overestimation of market size

·         Incorrect positioning

·         Price too high or too low

·         Inadequate distribution

·         Poor promotion

·         Inferior product

So there are many reasons why your new product might be one of the 95.5% that fail.

We defined Diffusion as The process by which the adoption of an innovation spreads.

The different categories of Adaptors are: 1- Innovators, 2- Early Adopters, 3- Early Majority, 4-Late Majority, and 5-Laggards.  This categorizes how fast people adopt new products such as a new Ipad.

We also learned about a products life cycle and how it is similar to the biological life cycle such that the product is born, matures, and dies. Just like animals, plants, and people.  Below is a graph showing both the diffusion and life cycle of a product.

I think this is the most important part of this weeks lesson.  To understand how the diffusion curve and the product life cycle curve coincide.  This will come in handy in any type of product situation.