Marketing and Management Strategies in New Product Development

This paper discusses marketing strategies essential for developing new products across three categories: 'really new products,' 'new products in existing categories,' and 'new varieties of existing products.' It highlights the crucial role of a marketing manager in developing products, emphasizing responsibilities such as market mission determination, demand forecasting, marketing activity synchronization, sales organization, competition review, resource allocation, and Product Life Cycle analysis. The paper details strategies for each product type, including slow skimming for 'really new products' like iTunes, rapid penetration for 'new to the firm' products like the AT&T credit card, and slow penetration for additions to existing product lines. It also mentions demand forecasting methods like the vicarious approach, evolutionary approach, and market test method, and concludes that focusing on the product life cycle is crucial for attaining sustainability in the marketplace. Desklib provides past papers and solved assignments for students.

Running Head: MARKETING & MANAGEMENT
Marketing strategies for the development of new products

MARKETING & MANAGEMENT
Introduction
The paper identifies the strategies required to develop three categories of new
products that are actually dissimilar. The products are, ‘really new products’, ‘new products
in existing product categories’ & ‘new varieties of existing products’. The paper also
expounds the Product Life Cycle and its strategies for the development of new products.

MARKETING & MANAGEMENT
A marketing manager parts a crucial role to develop products in the marketplace, and
the success of the product relies on the competency of the role played by the marketing
manager. The role of the marketing manager differs for the three kinds of products; new to
the world products (really new products), new to the firm products and additions to the
existing product lines.
The role of the Marketing Manager
Some of the prime roles and responsibilities conceded by a marketing manager are:
 Determining the market mission for the product in accordance with the company
objectives
 Forecasting market program
 Synchronizing the marketing activities with finance, warehouse & dispatch.
 Organizing selling functions
 Reviewing competition
 Resource allocation, using marketing mix components
 Analyzing the Product Life Cycle and strategize accordingly (Stark, 2015).
The stages involved in the PLC are portrayed below:
Figure 1: Product Life Cycle
Source – (Quick MBA, 2019)

MARKETING & MANAGEMENT
The four stages are:
I. Introduction
II. Growth
III. Maturity
IV. Decline
Subsequent are the steps taken by the Marketing managers for the development of the
three types of products, such as really new products (new to the world products), new to the
firm products and additions to the existing product lines (Kotler, et. al., 2015).
Really new products: Marketing manager would use the vicarious approach in demand
forecasting in order to understand customer preference and prepare the sales forecast (GK
Today, 2016).
Each stage of the product life cycle is strategized in accordance to the market
assumptions. Considering iTunes as a really new product, slow skimming strategy would be
applied for the development of the product life cycle. With slow skimming strategy, the
product is launched with a high price and low promotions to yield a profit as much as
possible. This is applied considering that the market is limited and consumers are ready to
pay high prices (NI Business Info, 2019).
New to the firm products (new product lines): Considering a product such as AT&T credit
card, a marketing manager would use the Evolutionary approach for demand forecasting
(GK Today, 2016). The sales and other sides of existing credit cards in the market would be
analyzed and strategized accordingly. Rapid Penetration strategy would be used for the
development of the product life cycle in the introductory stage, assuming the fact the market
is high, strong competitors and most of the buyers are price sensitive (NI Business Info,
2019).
Addition to existing product lines: In this, the marketing manager would select Slow
Penetration Strategy in which product is priced low and promotion is also not too extensive.
This strategy is applied by assuming the facts that the market is very large, the customers are
aware of the product and the buyers are price sensitive (NI Business Info, 2019). For demand

MARKETING & MANAGEMENT
forecasting, Market Test Method would be used; in this method, the product is offered as a
sample in the marketplace and the results are collected in order to get a base for demand
forecasting (GK Today, 2016).

MARKETING & MANAGEMENT
Conclusion
Through this paper, the fact can be assumed that a marketing manager parts a crucial
role in the development of new products in the marketplace. Different approaches have to be
used for forecasting product demand in the market, these approaches are used according to
the market assumptions based on market size and all the other factors. The product life cycle
has to be focused in order to attain sustainability in the marketplace.

MARKETING & MANAGEMENT
References
Stark, J. (2015). Product lifecycle management. Product lifecycle management, 1, 1-29.
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. AU:
Pearson Higher Education.
GK Today. (2016). Methods of demand forecasting for a new product. Retrieved from
https://www.gktoday.in/gk/methods-of-demand-forecasting-for-a-new-product/
NI Business Info. (2019). Product Life cycle. Retrieved from
https://www.nibusinessinfo.co.uk/content/product-life-cycle-strategies
Quick MBA. (2019). The Product Life Cycle. Retrieved from
http://www.quickmba.com/marketing/product/lifecycle/