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New market offerings
The document discusses developing new products and services, outlining the challenges companies face and processes used for new product development. It identifies various categories of new products and the main stages of developing new offerings. Additionally, it examines factors that influence the adoption of new products in the market and strategies for successful product launches.
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New market offerings
- 1. Introducing New Market Offerings MarketingManagement, 13th ed 20
- 2. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-2 Chapter Questions • What challenges does a company face in developing new products and services? • What organizational structures and processes do managers use to manage new-product development? • What are the main stages in developing new products and services?
- 3. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-3 Chapter Questions (cont.) • What is the best way to manage the new-product development process? • What factors affect the rate of diffusion and consumer adoption of newly launched products and services?
- 4. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-4 Johnson & Johnson Emphasizes New Product Development
- 5. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-5 Categories of New Products New-to-the-world Cost reductions New product lines Additions Improvements Repositionings
- 6. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-6 The World’s Most Innovative Companies • Apple • Google • Toyota • General Electric • Microsoft • Procter & Gamble • 3M • Walt Disney • IBM • Sony • Wal-Mart • Honda • Starbucks • Target • BMW • Samsung
- 7. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-7 Seven Notions of Innovation • See the future through the eyes of your customer • Intellectual property and brand power are key assets • Use digital technology to create tools for customers • Build a championship team • Innovation is a state of mind • Speed is critical, so push your organization • Partner up if you’re not the best
- 8. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-8 Factors That Limit New Product Development • Shortage of ideas • Fragmented markets • Social and governmental constraints • Cost of development • Capital shortages • Faster required development time • Shorter product life cycles
- 9. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-9 Table 20.4 Finding One Successful New Product
- 10. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-10 What is a Venture Team? A venture team is a cross-functional group charged with developing a specific product or business; intrapreneurs are relieved of other duties and provided a budget and time frame.
- 11. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-11 Criteria for Staffing Venture Teams • Desired team leadership style • Desired level of leader expertise • Team member skills and expertise • Level of interest in concept • Potential for personal reward • Diversity of team members
- 12. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-12 Figure 20.2 The New Product Development Decision Process
- 13. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-13 Ways to Find Great New Ideas • Run informal sessions with customers • Allow time off for technical people to putter on pet projects • Make customer brainstorming a part of plant tours • Survey your customers • Undertake “fly on the wall” research to customers
- 14. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-14 More Ways to Find Great Ideas • Use iterative rounds with customers • Set up a keyword search to scan trade publications • Treat trade shows as intelligence missions • Have employees visit supplier labs • Set up an idea vault
- 15. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-15 Drawing Ideas from Customers • Observe customers using product • Ask customers about problems with products • Ask customers about their dream products • Use a customer advisory board or a brand community of enthusiasts to discuss product
- 16. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-16 Idea Generation: Creativity Techniques • Attribute listing • Forced relationships • Morphological analysis • Reverse assumption analysis • New contexts • Mind mapping
- 17. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-17 Lateral Mapping • Gas stations + food • Cafeteria + Internet • Cereal + snacking • Candy + toy • Audio + portable
- 18. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-18 Variations on Failure • Absolute product failure • Partial product failure • Relative product failure
- 19. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-19 Table 20.5 Product-Idea Rating Device
- 20. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-20 Concepts in Concept Development • Product idea • Product concept • Category concept • Brand concept • Concept testing
- 21. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-21 Concept Testing • Communicability and believability • Need level • Gap level • Perceived value • Purchase intention • User targets, purchase occasions, purchasing frequency
- 22. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-22 Figure 20.6 Utility Functions Based on Conjoint Analysis
- 23. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-23 Marketing Strategy • Target market’s size, structure, and behavior • Planned price, distribution, and promotion for year one • Long-run sales and profit goals and marketing-mix strategy over time
- 24. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-24 Figure 20.7 Product Life Cycle Sales for Three Product Types
- 25. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-25 Table 20.6 Projected Five-Year Cash-Flow Statement (in thousands $)
- 26. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-26 Product Development • Quality function deployment (QFD) • Customer attributes • Engineering attributes
- 27. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-27 Prototype Testing • Alpha testing • Beta testing • Rank-order method • Paired-comparison method • Monadic-rating method • Market testing
- 28. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-28 Consumer Goods Market Testing • Sales-Wave Research • Simulated Test Marketing • Controlled Test Marketing • Test Markets
- 29. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-29 Test Market Decisions • How many test cities? • Which cities? • Length of test? • What information to collect? • What action to take?
- 30. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-30 Timing of Market Entry • First entry • Parallel entry • Late entry
- 31. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-31 Criteria for Choosing Rollout Markets • Market potential • Company’s local reputation • Cost of filling pipeline • Cost of communication media
- 32. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-32 What is Adoption? • Adoption is an individual’s decision to become a regular user of a product.
- 33. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-33 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption
- 34. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-34 Figure 20.6 Adopter Categorization
- 35. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-35 Characteristics of an Innovation • Relative advantage • Compatibility • Complexity • Divisibility • Communicability
- 36. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-36 Marketing Debate Who should you target with new products? Take a position: 1. Consumer research is critical to new-product development. or 2. Consumer research may not be all that helpful in new-product development.
- 37. Copyright © 2009Pearson Education, Inc. Publishing as Prentice Hall 20-37 Marketing Discussion Think about the last new product you bought. How do you think its success will be affected by the five characteristics of an innovation?