Chapter 13 in Today’s World

Section 13.2 Read to Learn Market Describe the kinds of a and Product company may use. Development Identify the steps in developing a new product.

The Main Idea Key Concepts Businesses must know their markets to provide Market Research products that will sell. They do market research to collect information and then develop products that The Seven Steps of Product Development will meet their customers’ wants and needs.

Key Term Key Term the gathering and analysis of facts about the population, market information on the size, location, demographics including age, gender, location, research and makeup of a market and income

determining the wants and needs of focusing on the people most likely marketing target customers and providing them more to buy a company’s goods and concept marketing efficiently than competitors services

1 Market Research

Key Term the division of a market for a Market research market research market product into groups of customers helps businesses the gathering and analysis segmentation who have the same needs and make decisions. of information on the size, traits location, and makeup of a market test- offering a product in a limited market market for a limited time

Market Research Information About Consumers

A marketing concept Marketers analyze and marketing concept demographics helps companies to determining the wants and label their markets by facts about the population, produce and market needs of customers and demographics . including age, gender, products and services providing them more location, and income efficiently and effectively that attract customers. than competitors

Graphic Organizer Information About Consumers

After studying a target marketing Surveys Figures market, marketers use focusing on the people Sources of target marketing . most likely to buy a Demographic company’s goods and Information services

The Databases

2 Information About Consumers Figure 12.1 Conducting Market Research

Once marketers know the demographics of a the division of a market for market, they can use a product into groups of market customers who have the same needs and traits segmentation in their target marketing.

The Seven Steps of Product Development Graphic Organizer

1. Generate Ideas New products energize the marketplace. 2. Screen Ideas The Seven Companies take seven steps in developing a Steps of 3. Develop a Business Plan new product. Product 4. Develop the Product Development 5. Test-Market the Product

6. Introduce the Product

7. Evaluate Customer Acceptance

Step 1: Generate Ideas Step 2: Screen Ideas

Workers often get together for brainstorming. After a list of ideas for a new product is completed, the team must evaluate each idea. People from a company’s development department, the staff, and How do these Does the new If the product’s ideas fit the product compete concept seems even outside market researchers may be company’s with one of the risky, should the mission and company’s company ask involved. strategy? existing consumers about products? the creative concept?

3 Step 3: Develop a Business Plan Step 5: Test-Market the Product

The business plan provides a look at the Marketers need to test-market market, including estimated sales, costs, profit test-market a product offering a product in a potential, market trends, and competing after the product is limited market for a limited products. fully developed. time

Step 5: Test-Market the Product Step 6: Introduce the Product

The goal of test-marketing is to collect A campaign introduces the product. customers’ responses to see if the product is likely to be a success. The costs of launching a new product are often high.

Step 6: Introduce the Product Step 7: Evaluate Customer Acceptance

The company has a short time in the market Once the product is introduced, marketers before competitors start developing similar track customers and their responses to it. products.

4 The Functions of Marketing Product Failures The seven functions of marketing define all the aspects that are part of marketing. Not all products that are test-marketed succeed. After Ford ® introduced the Edsel in 1958, the Who are our best What new How often do car failed to meet sales expectations. Marketing customers? products are they customers buy buying? the new product? experts say Ford did not understand U.S. consumers.

1. What are some tools used by market 2. What are the seven steps of product researchers? development?

surveys, sales figures for existing products, generate ideas, screen ideas, develop a databases, and the census business plan, develop the product, test-market the product, introduce the product, and evaluate acceptance

End of Chapter 13 Marketing in Today’s World Section 13.2 3. How can a company know if its new product Market Research is succeeding? and Product Companies can evaluate success by tracking Development customer responses.

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