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develop a product that's related to 1+ products in existing product line
designed to meet somewhat diff needs
more common than new products b/c less expensive, lower-risk
may focus on diff market segment
if unsuccessful, can hurt core product
changing the firm's product
diff from line extension b/c this replaces orig. product
1) customer must be able to notice a change has been made
2) should better match customer needs
changing dependability & durability
reducing quality can lower P and direct at a diff target market
change in effectiveness, convenience, etc.
can be done to fill in current product shortcomings
new-product development process
1) idea generation
3) concept testing - sample of potential buyers is presented w/ idea
4) business analysis
5) product development - feasible to produce?
6) test marketing
7) commercialization - fullscale manuf & marketing
requires changes in perception
to avoid cannibalization
can be accomplished by changing any part of marketing mix
a weak product drains profitability and time & resources
1) phase-out - let it decline w/o changing marketing strategy
2) run-out - increased marketing efforts, P reductions, to exploit ANY strengths left in the product
3) immediate drop - best when losses are too great to prolong its life
responsible for managing the marketing activities that serve A PARTICULAR group of customers
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