Examples of flexible product development in the following topics:
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- For some more complicated products, a large amount of uncertainty makes it impossible to plan the complete project before starting it, and thus a flexible approach is required.
- Flexible product development is the ability to make changes in the product being developed or in how it is developed, even relatively late in development, without being too disruptive.
- Flexibility is important because the development of a new product naturally involves change from what came before it.
- The more innovative a new product is, the more likely it is that the development team will have to make changes during development.
- Flexible development counteracts the tendencies of many contemporary management approaches to plan a project completely at its outset and discourage change thereafter.
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- The end product must meet the needs and expectations of the consumer.
- Each B2B entity matches production strengths to a definable target market and then must communicate and sell the product in the fashion that best demonstrates its value.
- Organizations are not in the business of developing marketing campaigns for marketing sake.
- Technology is changing at an unprecedented pace, and these changes are speeding up the pace of new product and service development.
- Adaptability, flexibility, speed, aggressiveness and innovation are the keys to remaining competitive today.
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- Developing marketing plans for different regions gives companies flexibility when reacting against competition or defending their position (market leadership, low cost provider, etc.) in a particular market.
- Product: A global company will have to tweak certain elements of its products for different markets.
- For example, cost of product development (produced locally or imported), cost of ingredients, cost of delivery (transportation, tariffs, etc.), and other variables will determine product pricing.
- Promotion: After product research, development and production, promotional tactics, such as advertising, are generally the largest line item in a global marketing budget.
- Brands conduct extensive research and consider numerous market variables when developing global marketing plans.
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- According to Levitt, a new economic reality—the emergence of global consumer markets for single standard products–has been triggered in part by technological developments.
- Levitt distinguished between products and brands.
- Standardized products can lower operating costs.
- In applying the global marketing concept and making it work effectively, flexibility is essential.
- Like many product companies, Coke has used a mix of standardization and localized marketing.
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- The most significant strength of personal selling is its flexibility.
- Advertisers typically expend time and money to send a mass message about a product to many people outside the target market.
- For instance, in addition to selling, a sales person can collect payment service or repair products, return products, and collect product and marketing information.
- In fact, sales people are often best at disseminating negative and positive word-of-mouth product information.
- These sales people, then, may miss opportunities to develop a broad base of potential customers that could generate higher sales revenues in the long run.Companies can also reduce sales costs by using complementary techniques, such as telemarketing, direct mail, toll-free numbers for interested customers, and online communication with qualified prospects.
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- Product development combined with product marketing make up the product management function within an organization.
- Product development – the process of bringing new products to the marketplace – combined with product marketing, make up the product management function that oversees the launch of a company's new products.
- A product manager investigates, selects, and develops one or more tangible products for an organization.
- Often, product management professionals serve as the middlemen between product development and engineering and marketing and sales teams.
- They often translate business objectives set for a product by marketing or sales into engineering requirements for product development.
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- When developing, implementing and measuring the effectiveness of marketing channels, businesses should consider:
- The Impact the attitudes of channel intermediaries have on the product
- For example, merchants are intermediaries that buy and resell products.
- Cost, flexibility and quick adaptation to changing markets and demand are usually the top factors sellers consider when assess and choosing distribution channels.
- Exclusive distribution is often characterized by exclusive dealing where the reseller carries only that producer's products at the exclusion of other products.
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- The multi-channel customer experience must be flawless and flexible.
- The path leads to a vast array of products that are priced to sell and satisfy.
- Social networking will be used to create product communities, get deals and access more information about businesses and the products or services they provide.
- This will force businesses to tighten up product development cycles and cost effectiveness as new products are tested in real-time.
- Bundling different products for better value and pricing will become more prevalent and offer many co-promotional opportunities for compatible businesses to work together and launch new product lines.
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- Heineken has also begun developing an alliance with Asia Pacific Breweries, the maker of Tiger Beer.
- American companies, on the other hand, typically develop a product first, before determining whether a market can afford its cost.
- Second, some firms find it less risky and more profitable to export current products, instead of developing new products.
- Furthermore, if a licensee firm fails to successfully reproduce a particular product, it could tarnish that product's original brand image.
- Joint ventures require a greater commitment from firms than other methods, because they are riskier and less flexible.
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- The "A" is action, which leads consumers toward taking action by purchasing the product or service.
- Lastly, marketers encourage consumers to take action by purchasing the product or service.
- Elmo Lewis, is largely credited for developing the AIDA model.
- Later developments also introduced more flexible uses of the AIDA model such as the reordering of steps for different consumer-to-product relationships.
- Additionally, as experts have examined the AIDA Model, more defined practices and theories have been developed.