Product DevelopmentProduct DevelopmentSports and Entertainment MarketingSports and Entertainment Marketing

Think About It!Think About It!• Think of two sports and two

entertainment products• Are they new or old?

Types of New ProductsTypes of New Products

• New-to-the-World Products New-to-the-World Products – Brand new innovations (the first of anything)Brand new innovations (the first of anything)

• New Product Category EntriesNew Product Category Entries– Nike adding sports equipment to there existing Nike adding sports equipment to there existing

apparel and shoe marketapparel and shoe market• Product Line ExtensionsProduct Line Extensions

– Adding an additional flavor of Gatorade Adding an additional flavor of Gatorade – Newest Twilight MovieNewest Twilight Movie

• Product ImprovementsProduct Improvements– NEW and IMPROVED!!NEW and IMPROVED!!

ACTIVITY!!ACTIVITY!!

Come up with an example of each Come up with an example of each • New-to-the-World ProductsNew-to-the-World Products• New Product Category EntriesNew Product Category Entries• Product Line ExtensionsProduct Line Extensions• Product ImprovementsProduct Improvements

Product Life CycleProduct Life Cycle

Four Stages of the Product Life CycleFour Stages of the Product Life Cycle

Stages of Product Life CycleStages of Product Life Cycle

• Stage 1:Stage 1: IntroductionIntroduction (new to the (new to the marketmarket))Companies Companies

• promote consumer awarenesspromote consumer awareness• get customers to try the productget customers to try the product• educate consumers about the producteducate consumers about the product

• Stage 2: GrowthStage 2: GrowthCompetitors are entering the marketplaceCompetitors are entering the marketplaceThe product must be improved to stay The product must be improved to stay

competitivecompetitiveSold in more locationsSold in more locations

Stages of Product Life CycleStages of Product Life Cycle

• Stage 3: Maturity StageStage 3: Maturity StageProduct has reached its peakProduct has reached its peakSales slow downSales slow downRepeat customers may stop buying and Repeat customers may stop buying and

it may be hard to attract new it may be hard to attract new customerscustomers

Stages of Product Life CycleStages of Product Life Cycle

• Stage 4: DeclineStage 4: DeclineSales and profit continue to dropSales and profit continue to dropThere is no longer a demand for the There is no longer a demand for the

productproductProduct may be dropped by the Product may be dropped by the

companycompanyGood Example: cassette tapesGood Example: cassette tapes

Think about it!Think about it!

Think of a product that is Think of a product that is currently in each of the stages currently in each of the stages of the product life cycle.of the product life cycle.

IntroductionIntroductionGrowthGrowth

Maturity Maturity DeclineDecline

• Develop new uses for the productsDevelop new uses for the products• Develop new product features and line Develop new product features and line

extensionsextensions• Increase the existing market (target market)Increase the existing market (target market)• Change Marketing Mix (5P’s)Change Marketing Mix (5P’s)• Link products to a trendLink products to a trend

What can be done to extend the What can be done to extend the Product Life CycleProduct Life Cycle

Activity• In groups of 4, each group is to create a new

product which can be a variation of an existing product with a point of difference.

• Then each group is to come up with a plan of how to market this product in each stage of the product life cycle.

• Think about - Is the product itself reasonable? Is the plan appropriate? Does the plan

properly manage each stage of the life cycle?

Market ResearchMarket Research

The process of systematically The process of systematically collecting, recording, analyzing, collecting, recording, analyzing, and presenting data related to and presenting data related to marketing goods and servicesmarketing goods and services

But before any of this can happen …But before any of this can happen …companies must conduct …companies must conduct …

Why is Market Research Why is Market Research important?important?

Global MarketGlobal Market – other countries are different from the – other countries are different from the US and companies need to learn and understand US and companies need to learn and understand their needs and wants before they enter that markettheir needs and wants before they enter that market

Competition Competition – companies need an “edge” to compete – companies need an “edge” to compete in the marketplace, so the need to research what in the marketplace, so the need to research what their competitors are doingtheir competitors are doing

Changing MarketChanging Market – customer needs change daily, it is – customer needs change daily, it is important to understand them before a company important to understand them before a company enters the marketplaceenters the marketplace

5 steps in Market Research5 steps in Market Research

1.1. Identify the problemIdentify the problem2.2. Conduct secondary research Conduct secondary research 3.3. Select and design primary researchSelect and design primary research4.4. Collect dataCollect data5.5. Report and analyze dataReport and analyze data

Identify the ProblemIdentify the Problem

Ask questions that research could Ask questions that research could answeranswer

Example: A golf ball manufacturer might ask Example: A golf ball manufacturer might ask ““What can we do to improve the image of our golf What can we do to improve the image of our golf

ball and stand out from the rest of the market?”ball and stand out from the rest of the market?”

Objective:Objective: To determine how golfers select To determine how golfers select their golf ballstheir golf balls

Conduct Secondary ResearchConduct Secondary Research

Secondary research:Secondary research: published data that published data that have been collected for some other have been collected for some other purposepurpose

Data that a company Data that a company DOES NOTDOES NOT compile themselvescompile themselves

Examples: Government records (census: demographics, etc), sales figures, trade organizations

Design Primary ResearchDesign Primary Research

Primary Research:Primary Research: Original research Original research conducted for a specific conducted for a specific marketing situationmarketing situation

Secondary research is done first Secondary research is done first because it may answer all the because it may answer all the questions and primary research questions and primary research may not be neededmay not be needed

Collect DataCollect DataData:Data: records or facts and figures that records or facts and figures that

are organized and analyzed in some are organized and analyzed in some wayway

Ways to collectWays to collectExperiment – try it outExperiment – try it outObservation – watch it happenObservation – watch it happenSurvey – ask about itSurvey – ask about it

Report and AnalyzeReport and Analyze

In order for data to be useful it must In order for data to be useful it must be reported and analyzedbe reported and analyzed

What does the information What does the information collected tell us about the collected tell us about the consumer (or subject)?consumer (or subject)?