Chapter 11. Developing and Managing Products

A new product is a product that is new to the world, the marketing, the producer, the seller. new products are important to sustain growth and profits and to replace obsolete items. Ferrari produces about 7,318 in this past year as they try to produce and design a car that makes it different from the previous one. They have been very successful, so sucessful that Ferrari thinks they sell to many cars and are going to cut down production to about 7,000. There is no doubt that there is a high demand for this line of cars but why would you cut something down when it would only make your business grow? Ferrari chairman Luca Cordero Montezemolo told reporters the reason for this was " to protect the brands exclusivity."

Ferrari has its own product development center located in Maranello, Italy. This building plays a role for Ferrari, showing that they are stable and mature and serious about their company and the needs. Ferrari doesn't just make a product and stick it right in its street legal cars and let it hit the market, NO WAY! That's why they use their F138 in formula races to test their products on how they would function as a car but when its pushed to the maxium speed how it affects the car and passenger with it. their developments consist of little minor new innovated parts on the car to making a new product, in the end they product products to help the consumer. For example Ferrari just recently came up with a new product that was a sidepod panel with a side bridge bending over the sidepod shoulder. You may ask how does this make it such a big product. When it comes down to automotive every inch of the car is a product itself alone its built and produced differently then all the others and they all play different roles in making the car what it is and how it runs. The product Ferrari came up with is designed to better control the airflow over the sidepod in a attempt to enhance the way the coanda exhaust works. This in simpler words means with a car comes responsibility in which the driver may not be able to control, this is a way they regenerate how the air hits the top of the car making it so that in such bad case that it would smooth over the sides and not interfere with the driving itself, making this safer for he consumer.

Chapter 18. Social Media & Marketing

Social media is a good way to communicate in a quick way and modern way in the world now, but gives marketers a way to use to their advantage.
Ferrari has become the main protagonist even on social networks. Social networks are a way for people to show others what is going on around the world without having to be there physically. Ferrari is the King of social media. Understanding one thing that they don't advertise or plan to ever do that. They get advertised by others motor vehicle magazines, videos on youtube, photos people have taken and shared on the Internet for others to view and acknowledge, with twitter and Facebook. Keeping people updated with the latest in cars and formula races that they run. The brand of the Prancing Horse is the leading player in the automotive sector and the most popular in general classification. They are claimed to Crowned the King is social media just because on they have the highest numbers on google that the search giant's media platform is worth investing in. Their website Ferrari.com is visited by millions of visitors every month in seven languages. With all this attention they are getting you ask what must they be doing right beside being truth worthy, recognizable, and a glamours worldwide icon, well they dedicated accounts to their various departments and events and stay extremely active with posting photos, videos, news and even up to date with the races that go on at the time providing fans with opportunities to share most of this stuff and have it viewed by others and so on, giving Ferrari a look that none could forget!

Chapter 10. Product Concept

A product concept can play a vital role in the new product development. In this chapter we focus on the product itself, they are not only tangible but they play a good role for service. Product itself is broken down to two different categorizes, business product which is good use for manufacturing other goods and services & then there is consumer product which satisfies a individual personal wants.
Ferrari falls in the category of business product and not much of consumer product.

Ferrari uses product concept in order to receive feedback from consumers as to implementing and and furthering the proposed concept. They then try to use the feedback and apply it to the idea of the next new product idea.

With people being more awake of the environment, Ferrari is slowly taking steps to make themselves more Eco-friendly. They recently reveled their new Eco-friendly car the Ferrari 599 Hybrid. They released this car as a concept vehicle but just as product concepts it serves a image of what they will be doing to improve the future step by step.

Chapter 17. Advertising and Public Relations

Ferrari has 51 stores and dealers in the United States, and 206 in the international and provide dealers and apparel via the Internet to every country in the world. This makes it accessible for buyers to view their product and others before making a final decision. This allows the customer to build some type of relationship with the company and its product itself. Personal selling is highly important for companies, which makes this important for Ferrari. Ferrari's are high value, technically complex products, you would need someone knowledgeable to guide you through the car itself and help you understand what you will be consuming. In the textbook it states that there are seven steps to the personal selling, generating leads, qualifying leads, approaching the customer and needs, developing solution, handling objects,closing sale, and last following up!

First you are required to set up a appointment with the dealer and well you would have to have a proper dress code to yourself to be taken serious. Next step is if you are not escorted out by security then you start to negotiating the price with the dealer, choose the model that you like best, paint interior and even have it personal customized to your desire and the dealer would be gladly to accompany your needs. Then you can start to negotiate the price and/or pay the down payment and wait a year till your custom car is delivered. If the way is to long for you and you would want it sooner Ferrari would gladly sell you one of their preowned ferraris on the spot in which would be running as brand new.