New Product Development and The Product Life Cycle al Affiliation New Product Development and The Product Life Cycle From the scenario, analyze the goals, product, price, and promotion for the new product launch in each stage of the product life cycle. Recommend two (2) marketing tactics and strategies that the intern should consider in order to increase product revenue over time. Provide rationale for your response.GoalsProduct PricePromotionMarket IntroductionTo enhance awareness of the product to target marketUses either penetration strategy or skimming strategyA mixture of advertising and promotional campaignMarket GrowthTo gain market shareCompetitive pricing strategyStronger advertising campaign to show core competencyMaturityTo sustain market shareDecrease or maintain current pricesAdvertisement efforts serve to remind customers of the productDeclineDivest, harvest or rejuvenate the old product (The Stages of the Product Life Cycle, 2014, p. 3)Pricing strategy depends on the goals pursuedAdvertisement and promotional efforts depends on the goals that were stipulatedGiven the evaluation of the new product’s life cycle (Iacobucci, 2014), as presented above, the two marketing strategies that the intern should to increase product revenue over time are as follows: (1) effective advertising and promotional campaigns that would initially enhance product awareness and sustain efforts for product recall. and (2) maintaining an effective competitive pricing strategy that would affirm the product’s core competencies and advantage over its competitors through time. An effective and well sustained advertising and promotional campaigns would ensure that the target market would be aptly aware, persuaded to purchase, and affirm loyalty to the product. Likewise, through these efforts, loyal customers would also invite others to purchase the product. On the other hand, maintaining a competitive pricing strategy would assist in confirming that customers would prefer purchasing their product due to other features, in conjunction with their competitive prices, as compared to those charged by competitors. As such, by not pricing the product way above competition or way below, customers would acknowledge preference to their product over their product life cycle. 2. From the e-Activity (Video) located at bottom, imagine you are on the marketing team for the Smart Car Company, which is looking to expand its current automobile offerings. First, propose one (1) possible new product or extension that your team could offer to either Smart Car Company’s existing target or a new target market. Next, formulate one (1) strategy for marketing your product to your selected market. Justify your response by comparing your strategy to the current Smart Car market and the challenges it is strategically facing. A possible new product extension that could be offered to a new target market for the Smart Car Company (Chapter 8: New Products, n.d.) is focusing on offering this to young professionals who are just beginning to exhibit professional growth. Due to the extremely good price which is considerably low, young professionals could be targeted as potential new clients who could easily afford to buy this. After defining this new target market, the strategy to market this product would be designed as follows: (1) product strategy: emphasize tailoring it to the customer’s needs (color, interior, space requirements, and other flexible product features). (2) pricing strategy: maintain the low price strategy that is the lowest in the market. (3) promotions: advertise in online medium as well as in television and print ads to widen audience awareness and enjoin them to try and purchase this product. (4) place: offer the product in strategic locations where the target clientele resides or works. The important thing is to emphasize the high quality, product features, greater mileage for fuel or gas, as well as safety. Of course, the most important selling point is the price which is the lowest in the market. and as such, could well be afforded by the target clientele. These strategies would address the challenges faced by Smart Car Company in terms of answering the queries of varied clientele regarding the product through more intensive advertisements and promotional campaigns.ReferencesChapter 8: New Products. (n.d.). Retrieved from cengage.com: http://www.cengage.com/marketing/book_content/9781133190608_iacobucci/videos/ch08.htmlIacobucci, D. (2014). Chapter 8: New Products. In MM4: Marketing Management. Cengage Learning.The Stages of the Product Life Cycle. (2014).
Discussion Week 5 New Product Development and The Product Life Cycle