Market Potential and New Product Development Strategies

Market Potential and New Product Development Opportunities: Strategic options for new uses, users, variety of use, and usage frequency. Usage gap/intensity, coverage distribution gap/new product lines, product features product line gap/direct competitors indirect competitors competitive gap. Start steps: present position, competition, distribution, usage. Reasons company change marketing strategy: undefined concept, no common shape, unpredictable turning points, unclear implications, not exogenously determined, product-oriented. Case study: First step is to identify different approaches, if the product is based on consumer needs, to solve a problem that is a long-term decision of the company, then you need to make a study about Kotler levels: core product, generic product, expected product, augmented product, potential product. When the study is ready, then the company has to take product decisions like branding. If we analyze Gillette, the steps were: 1. They sought to solve a problem, they wanted to create a razor for men, they had great ideas but they were not very efficient in discovering which was the most effective and worked best, they used too much publicity to create a good image of the brand, they should have followed more steps, studied more what the consumer wants, etc.

Customer Value: Pricing based on the value for the customer, it is based on the needs of the customer, and the benefits that the product must provide. The price is established considering these aspects: internal factors that influence decisions about pricing: marketing objectives: survival, maximization of current profits, strategy of the marketing mix: cost, organizational considerations. About the external factors, the market and the demand: pricing, pure competition, monopolistic competition; perception of price and value by consumers. Oral Hygiene Case: It is possible that the project was not being focused in the best possible way at the moment of reaching these objectives that must be clear. If a company wants to make money, it must risk, in this way it can be good or bad. Lily's idea is to invest a great part of the available budget in television announcements, this is innovating but executives think that it would be more suitable not to destine such a quantity of money for television announcements just because they can debilitate the image of the product. The option is to destiny the budget to specialists in the dental area. I think that the perfect way to communicate with customers is advertising in different areas not only on TV/radio but also among dentists, just for one reason, people trust more the advice of their oral hygiene doctors rather than information offered in a TV commercial. 5 Promotional Tools:

Advertising: Is any paid form of media communication. This includes print ads in magazines, trade journalism, newspapers, radio and TV announcements. Advertising is non-personal promotional activity because the seller has no direct contact with the potential customer during the communication process. Sales Promotion: Just like price incentives (50% off, buy one get one free). Public Relations: These activities promote a positive image, generate publicity with the intent of increasing sales. Generating favorable media coverage, hosting special events, and sponsoring charitable campaigns.

Direct Marketing: It is a form of advertising aimed directly at target customers (usually in their homes or offices) that asks the receiver to take action, such as ordering a product, clipping a coupon, phoning a toll-free number, or visiting a store. Catalogs, coupon mailers, and letters are common forms of direct marketing.

Personal Selling: Face-to-face communication between buyer and seller.