E
very company, regardless of size, must research and create new products to main-
tain or build sales. Why? Customers want new products and choices, and competi-
tors will be doing their best to supply them. Over 16,000 new products (including line
extensions and new brands) arrive on grocery and drugstore shelves every year, having
made their way through the new product development process from bright idea to
testing to commercialization.
Not every new product catches on, of course, and those that do are adopted by
customers at different rates. This is why smart marketers target early adopters and use
marketing tactics that will facilitate consumer movement through the various stages in
the adoption process.
Companies normally reformulate their marketing strategy several times during a
product’s life as economic conditions change, competitors launch new assaults, and the
product passes through new stages of buyer interest and requirements. Successful com-
panies plan marketing strategies that are appropriate to each stage in the product’s life
cycle and hope to extend each product’s life and profitability, knowing that no product
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Developing,
Differentiating, and
Positioning
Products Through
the Life Cycle
We will address the following questions:
■What challenges does a company face in developing and introducing new products?
■What are the main stages in developing new products, and how can they be better
managed?
■What factors affect the rate at which consumers adopt new products?
■What marketing strategies are appropriate at each stage of the product life cycle?
■How can a company choose and communicate an effective positioning in the market?