Core product actual product
- Clean clothes - washing machine, laundry detergent,
- Relaxation - cigar, vacation, alcohol, TV, Couch
- Confidence - skin care, hair care, clothes, nice car, gym. Membership
- Communication - phone, laptop, social media, email
The core product seems like the benefit provided by the actual product or the core product can be solved/ enhanced by the actual product
Those elements that are instantly recognized as representing a particular business or product.
o Brand identity: brand name, logo, packaging shape and graphics, product description, colors
- Is the collection of all elements that a company creates to portray the right image to its customer
EX: § EX: Coca Cola: happiness (refreshing drink) - red color, santa, polar bear, unique shape of can/package- all of this builds brand identity of happiness
§ Air bnb brand logo representing people, places, love, and air bnb
Step One: Idea Generation Initially, idea generation, or ideation, occurs as customers, employees, vendors, and stakeholders give input on products they would like to see a company develop. Expert feedback can provide a wealth of information and innovation that may satisfy an unmet need.
• Step Two: Idea Screening Not every idea is a good one. Each must be scrutinized to determine whether it is a good ft with the company's mission, goals, vision, and values. Measures of a product's potential success must be weighed against the potential costs of bringing it to market. Stakeholders may provide input about the feasibility of a successful product launch
• Step Three: Concept Testing Once a product passes internal analysis, an external analysis with actual potential customers will help determine the product's viability. Through research techniques such as focus groups, a marketer can gain valuable insight into whether a product is truly desired by the target audience. These potential customers can help further refne what product features are needed, provide feedback on possible branding and packaging strategies, and continue the process of ideation to further develop the overall product concept.
• Step Four: Business Analysis With a clear product concept in mind, advanced marketing planning begins. A detailed marketing plan, including a target market analysis, a positioning statement, and marketing strategies, should be prepared. Financial analysis also occurs at this stage so that the business takes a serious look at the costs involved in the product launch, likely competitor reaction, and potential demand and profitability.
Step Five: Product Development With commercialization quickly approaching, a prototype of the product is created to further test the design concept. More consumer feedback may be obtained by using the prototype in additional focus-group research, or the product can be manufactured in limited quantities for test-marketing purposes.
• Step Six: Test Marketing Test marketing involves launching the product on a small scale in select markets to gauge customer reaction to the marketing plan. The marketing plan is implemented in test-market locations: product, price, place, and promotion. This process provides an opportunity to further refne all marketing strategies before full-scale commercialization occurs.
• Step Seven: Commercialization Armed with test-marketing data, the company revises marketing strategies as needed and prepares for the product launch. Distribution takes place on a large scale, and promotional plans are executed in each market. The marketing team evaluates the product launch periodically to determine how the product is performing, and the plan is adjusted as needed.
Introduction: As the product enters the marketplace, a great deal of resources are invested into building awareness and growing the customer base, particularly among innovators who enjoy trying new products and have a tremendous amount of infuence on others. At this point, the revenue stream is being used to recoup sunk costs in research and promotions, and earnings are also being used to invest back into the brand.
• Growth: As more customers adopt the product, sales growth is achieved and the frm becomes proftable. This proft attracts the attention of other companies, who may enter the marketplace with competitive products. With continued growth, the company may expand its product line to include related products. This enables the company to diversify, generate more revenue, and satisfy the increasing demands of customers.
• Maturity: During the maturity stage, the marketplace is robust with heavy competition; marketers must truly differentiate their products in order to maintain market share. At this point, marketers also begin to consider ways to revitalize the product life cycle and stimulate growth once again. This is possible through changes to the product's features, finding new markets, or developing new uses for the existing product.
• Decline: The decline stage is characterized by sluggish sales, which may in turn be caused by newer forms of technology replacing outdated products. As both sales and profts begin weakening, the company may decide to invest its resources in new product development or divest/sell the product to another company.