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MARKETING MANAGEMENT - New Products Development Strategies

The Technology / Market Matrix - New Products Development Strategies

   Posted On :  18.06.2018 09:37 pm

Another way to look at new products is through one of strategic planning’s most useful analytical devices – an array of future options or alternative such as that shown in figure 1.1.

The Technology / Market Matrix

Another way to look at new products is through one of strategic planning’s most useful analytical devices – an array of future options or alternative such as that shown in figure 1.1, A firm has roughly four way to gain new business – see quadrants A, B, C and D in the figure 13.1



Product improvement 

 
This is the easiest strategy – selling more of the product line to current customers. This involves product improvement, smarter marketing and increasing market shares. New products management plays a minor role and the activity is often called market development, not product development.
 

Line Extension

 
It involves capitalizing on the firm’s current strengths. If the strengths is franchise with a particular customer group, quadrant B’s strategy is to develop more product t sell to them. Such products don’t have to be unique because the franchise will help sell them.
 
 

New use and market extensions

 
 
This is suitable when the firm’s strength is technology –something the firm known or does especially well.
 
Example are coca-cola’s bottling system. Coming’s glass skills and Hewlett packand’s electronics capabilities.
 
Such firms try to develop new products that exploit their technology.
 
 

Diversification

 
 
It involves leaving both the firm’s customer base and its technology base. This high-risk strategy should be used only under special circumstances. The new products may come by acquisition rather than through internal product development.
 
DCM’S entry into the LCV market fits into this category. 

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