stage gate plan cooper 2
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The New Product Process: The Stage-GatePlan
Dr.-Ing. Amalia Suzianti, ST, M.Sc.
suzianti ie.ui.ac.idamalia.suzianti alumni.tu-!erlin.de
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Agenda
The Stage-Gate Model: State of the Art
Product Innovation Process Key Points and
Success factors
Discovery. The Quest for rea!through Ideas
The "arly Ga#e: $ro# Discovery toDevelo%#ent
The Stage-Gate Model: $ro# Discovery to&aunch: Stages and Gates
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The Stage-Gate Model: State of the Art"ne o# the most #amous s$stematic %roduct inno&ation%rocesses is the Stage-Gate Plan.
It co&ers the conce%tual and o%erational model o# %roductde&elo%ment #rom idea generation to launch and !e$ondand it is used as a !lue %rint #or managing the new %roductgeneration %rocess
The Stage-Gate !rea's the inno&ation %rocess into a%redetermined set o# stages, each stages consisting o# aset o# %rescri!ed, cross-#unctional and %arallelacti&ities.The entrance to each stage is a gate. These gatescontrol the %rocess and ser&e as the (ualit$ control andgo)'ill chec'%oints. These stage and gate #ormat leads to
the name *Stage-Gate %rocess+ see oo%er, //0a, 0 12.
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The Stage-Gate Model From Discovery to Launch: Stages
The !ey stages consist of follo'ing %rocesses:Discovery : re-!or" designed to discover and uncover o ortunities and generate ideasScooping : a #uic"$ reliminary investigation of the ro%ect &inclusive technical 'enefits and mar"et ros ects(
Building the Business Case : a much more detailed investigation involving rimary research$ 'oth mar"et andtechnical$ leading to a 'usiness case$ including roduct and ro%ect definition$ ro%ect %ustification and a
ro%ect lan) *t is the critical home!or" stages$ the one that decides if the ro%ects should 'e 'ro"en or continued)Development : the actual detailed design and develo ment of the ne! roduct and the design of the o erations
or roduction rocessTesting and Validation : tests or trials in the mar"et lace$ la' and lant to verify and validate the ro osed
ne! roduct and its mar"eting and roduction + o erationsLaunch: commercialisation$ 'eginning of full o erations or roduction$ mar"eting and selling)
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A S$stematic New Product Process:
;e$ PointsNo. Points
,) The ne! roduct rocess must 'e a #uality rocess) There is a clear need for a systematic ne! roduct
rocess to guide and facilitate the ne! roduct ro%ect from idea to launch)
) The rocess or game lan must 'e designed to manage ris". a multistage and gate frame!or" is most
a ro riate)
/) Gates are central to the ne! roduct rocess)
0) 1arallel rocessing 'alances the need for a com lete and #uality rocess !ith the desire for a s eedier
rocess)
2) The rocess re#uires a cross functional$ em o!ered team headed 'y a team leader !ith authority)
3) The rocess is mar"et-driven and customer-focused)
4) 5 -front or redevelo ment home!or" is crucial to success and these activities must 'e 'uilt into the
game lan in a consistent and systematic !ay)
6) The #uest must 'e for su erior differentiated roducts that offer value to the user)
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The ritical Success
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Disco&er$: The =uest #or
>rea'through Ideas 02In general, there are two a%%roaches o# idea generation.It could !e !ottom-u% or to% down method.>ottom-u% method means that the ideas come #rom the em%lo$ee.
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Disco&er$: The =uest #or
>rea'through Ideas 2Nowada$s, the com%an$ has realised that the unco&ered inno&ati&e ideascould come #rom outside the com%an$."ne o# the source are the customers who at the end directl$ dealing withthe designed %roducts and 'now e actl$ a!out their %er#ormance.
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Disco&er$: The =uest #or
>rea'through Ideas 82Idea Generation using reati&it$ Techni(ues: >rainstorming,Analog$ Method, ?andom Stimulation, Ma%%ing techni(ues, T?IMethod, etc.
Focal1erson
1eriodicevie!
B5 date
Stage ,
Cthers in
@om any
Gate ): Idea
Screen
*dea ault or 9an"
-ideas on hold
-;dead; ideas
)
$eed*ac! to su*#itter
Focal1erson
1eriodicevie!
B5 date
Stage ,
Cthers in
@om any
Gate ): Idea
Screen
*dea ault or 9an"
-ideas on hold
-;dead; ideas
)
$eed*ac! to su*#itter
Source: @oo er$ ==,a$ ) ,4/
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The Earl$ Game:
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The Earl$ Game:
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The Earl$ Game:
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The Earl$ Game:
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The Earl$ Game:
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Summar$ o# Stage 0. Scoo%ingActions Scoo%ing
1reliminary mar"et assessment
1reliminary technical assessment
1reliminary financial+ 'usiness
assessment
ecommendation and 1lans for Stage
Iuic" scoo ing of the mar"et ros ects for the
roduct: otential$ acce tance$ re#uirements$ not
detailed mar"et research$ detective and des"
research only$ relying on readily availa'le sources
@once tual assessment of technical feasi'ility$
ro'a'le technical solution$ technical ris"s$
manufactura'ility &or source of su ly( and
intellectual ro erty issue
A sanity chec": an e7tremely rudimentary and #uic"
chec" of the 'usiness rationale and financial
ros ects. the ossi'le ay'ac" eriod
A Go+>ill recommendation . and ro osed actions
1lans for Stage &timeline. resources$ eo le and
erson-days. delivera'les and date for ne7t gate(
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Stage : >uilding the >usiness ase
@om etitive
Analysis
Mar"et
Analysis
5ser?eeds BHantsstudy
DetailedTech)Asses)Translation
@ustomer !ith list:
1rod) re#)
Tech)Feas)1roduct@once t
Mit @ostsB 1roduction
J#ui t?eeds
Financial
Analysis
J7 ectedSales B
evenues
@once tTest:
1urchase*ntent
1ro%ect 1lan:Develo ment 1lan
Tentative test$ Mar"eting B1roduction 1lan
1ro%ect KustificationFinancial$ is" B 9usiness
Assessment
1roduct definition:Target M"t$ @once t$1osition B 9enefits
e#uirements B S ecs
@om etitive
Analysis
Mar"et
Analysis
5ser?eeds BHantsstudy
DetailedTech)Asses)Translation
@ustomer !ith list:
1rod) re#)
Tech)Feas)1roduct@once t
Mit @ostsB 1roduction
J#ui t?eeds
Financial
Analysis
J7 ectedSales B
evenues
@once tTest:
1urchase*ntent
1ro%ect 1lan:Develo ment 1lan
Tentative test$ Mar"eting B1roduction 1lan
1ro%ect KustificationFinancial$ is" B 9usiness
Assessment
1roduct definition:Target M"t$ @once t$1osition B 9enefits
e#uirements B S ecs
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Patent Anal$sis
The %ur%ose o# %atent anal$sis is to identi#$ the latest de&elo%ment o#technolog$ ) %roduct which are rele&ant to the %ro%osed %roductinno&ation.It is also &er$ use#ul to anal$se the technolog$ ad&ancement o# thecom%etitor and there#ore, hel%s the com%an$ to de&elo% a %roductinno&ation with com%etiti&e ad&antage accordingl$.
Identi#$ area o#anal$sis
De4ne researchmedium
De4ne researchmedium onduct research
lasi#$ rele&ant%atentsAnal$se %atentsSelect %atent
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Design o# =ualit$ and Technolog$
The design o# (ualit$ and a%%ro%riate technolog$ #or %roduct inno&ationare crucial in the %roduct de&elo%ment %rocess.
The common methods used are:=ualit$
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Summar$ o# Stage .>uilding the >usiness ase 2 Actions Scooping
Concept testing
$inancial%&usiness analysis
'lans o( actions
The final mar"et test rior to full commitment to develo the roduct) Tests the ro osed roduct conce t !ith the
customer & roduct conce t$ model$ virtual rototy e() *nvolves face-to-face intervie!s. gauges interest$ li"ing$
reference$ urchase intent and rice sensitivity)
Loo"s at the 'usiness rationale for the ro%ect) *ncludes strategic assessment &fit and im act() Also a core
com etencies assessment and artnering &or out-sourcing( strategy is ma ed out$ along !ith the role of
international units) Finally a detailed financial analysis develo ed: ?1 $ * and sensitivity analysis)
Develo s recommendation for ro%ect &Go+>ill( and a detailed Action 1lan for Stage / &Develo ment 1lan(. also
tentative lans for Stage 0$ Testing and Stage 2 &'oth reliminary Mar"eting and C erations 1lans() A launch date is
s ecified)
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once%t Testing
The mar"et test rior to commitment to develo the roduct) Tests the ro osed
roduct conce t !ith the customer usually in a form of virtual rototy e &design
s"etch( or ra id rototy e) *nvolves face-to-face intervie!s. gauges interest$ li"ing$
reference$ urchase intent and rice sensitivity)
"ne o# the common methods used #or conce%t testing is on3oint anal$sis
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once%t Testing: on3oint anal$sis
on3oint anal$sis as a methodolog$ allows a su!set o# the %ossi!lecom!inations o# %roduct attri!utes to determine the relati&e im%ortance o#each attri!ute in a decision ma'ing %rocess. It is !est suited #orunderstanding consumers5 reactions to and e&aluations o# %redeterminedattri!ute com!inations that re%resents %otential %roducts.Btilit$, which is the conce%tual !asis #or measuring &alue in con3ointanal$sis, is a su!3ecti&e 3udgment o# %re#erence uni(ue to the indi&idual.It encom%asses all %roduct #eatures, !oth tangi!le and intangi!le, and assuch is a measure o# o&erall %re#erence.
As con3oint anal$sis co%es with !oth real and h$%othetical %roducts, it has!een ado%ted widel$ in new %roduct de&elo%ment %rocess. It is reall$hel%#ul to e&aluate new %roduct conce%t, anal$se its #easi!ilit$ and %lace itin the desired target mar'et.
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?a%id Protot$%ing
?a%id Protot$%ing is a %rocedure o# trans#orming the &irtual designs #romcom%uter added design into 8D %rotot$%e model %art.
"ne o# the common %rocedures is 8D Printing which use materials such as%lastics, gi%s-ceramics, %hoto%ol$mer.
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>usiness and usiness Prioritisation riteria?is'-?eward DiagramsPrice Estimation
Target Mar'et Estimation>rea' E&en Point Estimation
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>usiness Prioritisation riteria
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?is'-?eward Diagram: >u!!le Diagram
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?is'-?eward Diagram: 8M >u!!leDiagram
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?is'-?eward Diagram: 8D >u!!leDiagram
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?is'-?eward Diagram using ScoredA es
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BETA TESTING AND MARKET TESTING
STAGE
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P?"T"TJPING
Protot$%ing distinguished !$ dimensional %ers%ecti&es:
Ph$sical and anal$tical %rotot$%esPh$sical %rotot$%es: tangi!le model o# a %roductAnal$tical %rotot$%e: non-tangi!le model o# a %roduct
om%rehensi&e and #ocused %rotot$%es
om%rehensi&e %rotot$%e: #ull-scale, #ull$ o%erational o# a%roduct
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Milestones in Protot$%ing
Al%haProtot$%
e
>etaProtot$%
e
GammaPre-
Production2
Protot$%e
?elease To
M
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Mar'et testing
Mar'et testing com%rises the acti&it$ o# testing a !eta%rotot$%e o# a %roduct
The %ur%ose is to gather the o%inion o# the mar'et a!out the%roduct, learn a!out the mar'et size and customer anddistri!ution channel relationshi%s
The size o# mar'et testing area de%ends on the !udget and ris'o# in&estments, time and the inno&ati&e &alue o# a %roduct
The !ene4t o# mar'et testing is to minimise the ris's o# %roduct#ailure in the mar'et
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Methods o# Mar'et testing
Sales wa&e research: measure the e9ecti&it$ o# ad&ertisement%romotion acti&ities2 to %urchase intent
E am%le: Gi&ing #ree sam%le o# %roducts and discounts #or%roducts, and notes the customers who in the end !u$ the%roducts with their o%inion
Simulated test mar'eting: measure the %re#erence o# the new%roduct com%are to com%etitorLs %roduct
ontrolled test mar'eting: test the %roduct #or mar'eting with as%eci4c scenario in a s%eci4ed location, areas, %roduct%lacement, %roduct dis%la$s and %romotion2
Test mar'et: test the %roduct #or mar'eting with the sameconditions as %roduct launch
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Calidation o# the Product and Go-No GoDecision
7a&ing the %roduct tested in #unctionalit$ and mar'et %ros%ect,the ne t ste% is to anal$se the #easi!ilit$ o# the %roduct #orlaunch. This anal$sis is mainl$ !ased on 4nancial criteria.
I# the %roduct %asses the criteria, the %roduct can !e releasedto launch and %roduction and o%eration %lan can !e started.
>ill
1assPass,Kill:1ro%ect is evaluated
against Must Meet BShould Meet @riteria)Does the ?1 $* B1ro%ect AttractivenessScore ass hurdles
Prioritisation:1ro%ect Attractiveness
Score B ?1 com aredto Active 1ro%ects B
1ro%ects on Eoldesources are
allocated
Go-isresourced.
'ecomes Active1ro%ect
1lacedCn hold
>ill
1assPass,Kill:1ro%ect is evaluated
against Must Meet BShould Meet @riteria)Does the ?1 $* B1ro%ect AttractivenessScore ass hurdles
Prioritisation:1ro%ect Attractiveness
Score B ?1 com aredto Active 1ro%ects B
1ro%ects on Eoldesources are
allocated
Go-isresourced.
'ecomes Active1ro%ect
1lacedCn hold
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Technical Im%lementation
S$stem and %rocess %lanning"%erational %lanning?esource allocation
a%acit$ %lanningProduction %lanningMar'eting %lanning
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LAUNCH AND COMMERCIALISATION
STAGE
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Into the Mar'et: Setting u% the Mar'eting
Plan The launching o# the new %roduct should !e accom%anied withthe right mar'eting %lan. It summarises com%an$5s o!3ecti&es,strategies and %rograms
The de&elo%ment o# a #ull mar'eting %lan occurssimultaneousl$ with %roduct de&elo%ment to em%hasize that a#ormal mar'eting %lan should !e in %lace !e#ore the %roduct isread$ #or mar'et introduction.
This %lan guides the %roduct5s entr$ to the mar'et. Kithout anesta!lished mar'eting %lan it would !e di cult #or the %roductto achie&e the mar'et success. There#ore this %rocess alsoconsidered as a crucial %hase in the new %roduct de&elo%ment%hase.
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Setting mar'eting o!3ecti&es The mar'eting o!3ecti&es gi&e the direction to the com%an$ to achieðeir goals. It hel%s the manager to sta$ remain on the line and ta'ingdecisions that meet those o!3ecti&es. The mar'eting o!3ecti&es arealso wor' as the standard #or measurement. Milestones or !enchmar'sare critical during the aunching stage when the corrections arenecessar$ see oo%er, //0a, 02.Normall$ it co&ers also the 4nancial o!3ecti&es such as unit or dollarsales o# the %roduct in a %eriod a#ter lunch, share %er $ear and %roduct%ro4ta!ilit$ %ro4t margins, annual %ro4ts, %a$!ac' %eriod2.
>$ the launching time the mar'eting o!3ecti&es ha&e %er#ormedse&eral changes #rom the %ro3ect start. It ado%ted the &iews #ormother de%artment such as logistic, 4nancial, research andde&elo%ment and so #orth. And then all o# these &iews collected andanal$sed in order to 4nd the #easi!le %lan and strateg$ to !e%er#ormed. At the end the mar'eting %lan should accommodate theneeds and the goals #rom all the de%artments.
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The Ste%s o# De&elo%ing Mar'eting Plan
Product Inno&ation
). Diagnose and +once%tuali e Key Mar!et $actors : Through a study of mar"et o ortunity for the ne! roduct$ identify and conce tually define the m a%or factors &"ey varia'les andsta"eholders( in the ne! roduct situation hy othesi ed to influence demand)
. $or#ulate S%readsheet and Su*#odels of Ma/or $actors : 5sing the identified factors toestimate mar"et si e$ gro!th and enetration$ formulate s readsheet and other su'modelsto guide data collection)
0. +ollect Data on Key 1aria*les : @ollect data for the various models to develo estimatesof the trends or e7 ected directions on the ma%or facto rs and their interactions over thene! roduct lanning hori on)
2. Analy e Data and Seg#ent Mar!et : Analy e the data collected$ !ith em hasis on thesegmentation structure of the mar"et and ossi'le altern ative conce ts for segments)
3. Develo% "nhanced (e' Product Scenarios : Focusing on a selected segment$ create ane! roduct scenario of 'ase case and alternative futur es from trends and assum tionsa'out the effects of ma%or factors on the ne! roduct)
4. "sti#ate Mar!et Potential and Penetration : *n the conte7t of the ne! roduct scenario$use the s readsheet model to develo estimates of mar"e t otential and enetration under varying assum tions)
5. +ontinually 6%date Models and "sti#ates : *ncor orate ne! data and e7 erience into theroduct models and scenarios over the cycle of roduct develo ment and continually
u date mar"et o ortunity forecasts)
). Diagnose and +once%tuali e Key Mar!et $actors : Through a study of mar"et o ortunity for the ne! roduct$ identify and conce tually define the m a%or factors &"ey varia'les andsta"eholders( in the ne! roduct situation hy othesi ed to influence demand)
. $or#ulate S%readsheet and Su*#odels of Ma/or $actors : 5sing the identified factors toestimate mar"et si e$ gro!th and enetration$ formulate s readsheet and other su'modelsto guide data collection)
0. +ollect Data on Key 1aria*les : @ollect data for the various models to develo estimatesof the trends or e7 ected directions on the ma%or facto rs and their interactions over thene! roduct lanning hori on)
2. Analy e Data and Seg#ent Mar!et : Analy e the data collected$ !ith em hasis on thesegmentation structure of the mar"et and ossi'le altern ative conce ts for segments)
3. Develo% "nhanced (e' Product Scenarios : Focusing on a selected segment$ create ane! roduct scenario of 'ase case and alternative futur es from trends and assum tionsa'out the effects of ma%or factors on the ne! roduct)
4. "sti#ate Mar!et Potential and Penetration : *n the conte7t of the ne! roduct scenario$use the s readsheet model to develo estimates of mar"e t otential and enetration under varying assum tions)
5. +ontinually 6%date Models and "sti#ates : *ncor orate ne! data and e7 erience into theroduct models and scenarios over the cycle of roduct develo ment and continually
u date mar"et o ortunity forecasts)
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The Situation Size-B% There situation size u% should !e %er#ormed at e&er$ %hase o#mar'eting %lanning. It anal$ses !oth the internal and e ternalen&ironmental condition and its contri!ution to the actionde&elo%ment.E ternal condition:
Mar'et anal$sis: mar'et o&er&iew, mar'et segments, !u$er!eha&iour and com%etitionMacro en&ironmental anal$sis: economic, %olitical, legislati&e andlegal situation, demogra%hic and social trends, and technologicalde&elo%ment
Internal condition:SK"T Anal$sis
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De4ning the target mar'et The segmentation anal$sis should $ield a num!er o# %otential mar'etsegments.
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Product Strateg$ @ Mar'eting
ommunicationProduct Strateg$ co&ers the %ositioning o# the new %roduct in themar'et, assessment o# its !ene4ts and &alue %ro%osition, andtranslation o# these !ene4ts and the &alue %ro%osition into #eatures,attri!utes and %roduct re(uirements.
The %roduct %ositioning is all a!out the matter o# com!ining themar'et segmentation and %roduct di9erentiation. That means that thecom%an$ should consider the customer o%inion a!out the %roduct%osition com%ares to com%etitor and also set u% the %roductstatement which clearl$ di9erentiates the %roduct #rom others. The
statement should !e clear, meaning#ul and concise.Although the com%an$ has the !est %roduct with reasona!le %rice,without the %ro%er ad&ertising and mar'eting communication the%roduct will not achie&e mar'et success. That is wh$ currentl$ e-communication holds an im%ortant role in determining the %roductsuccess.
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Mar'eting Plan #or Product Inno&ation:
Program ?e&iew 02Product decisions &assuming segmentation and ositioning strategy( @ore roduct conce t Features+'enefits &functional$ emotional$ aesthetic( Jngineering+design elements &'ased on translation of roduct fea tures( 1roduction+o erations com onents &'ased on engineering+ design e lements( 1ac"age & roduct rotection$ usage$ communication$ design$ la'el $ decom osition( 9rand name &cor orate name$ family 'rand$ ne! roduct 'rand$ log o$ trade mar"(
1roduct line &styles$ features$ rice oints( Legal &trade secrets$ atents$ co yrights$ !arranties( Cther
Pricing decision Cverall rice Margins 1rice structure &geogra hy$ 'undled vs) un'undled 'y features an d services$ seasonality( 1rice romotions &discounts$ allo!ances$ remiums( Cther
Distri*ution decisions
@hannel selection &direct$ distri'utors$ !holesalers$ 'ro"ers$ agents$ retailers( Geogra hic sco e &glo'al$ regional$ national$ state$ city$ commu nity( Selectivity &intensive$ selective$ e7clusive( Logistics &inventory$ !arehousing$ order rocessing( Cther
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Mar'eting Plan #or Product Inno&ation:
Program ?e&iew 2+o##unication decisions Message goals &a!areness$ interest$ "no!ledge$ reference$ inten tion$ action( 9udgeting uantity of information$ cost of information( Scheduling & lacement$ t iming( @reativity &emotional$ logical$ resonance$ aesthetic( Media
Advertising &message goals$ creativity$ 'udget$ schedule( Sales romotion &message goals$ ty e$ creativity$ 'udget$ si e$ schedule( Sales force &message goals$ creativity$ 'udget$ si e$ recruitmen t$ training$ com ensation$
motivation$ evaluation( Telemar"eting &message goals$ creativity$ 'udget$ schedule( 1u'lic relations &message goals$ creativity$ 'udget$ schedule(
Jffectiveness measures &unaided recall$ aided recall$ recognitio n$ "no!ledge$ trial$ re eat( Cther
+usto#er service decisions 1re-sale service &financing$ trials$ lanning$ education(
1ost-sale service &un ac"aging$ installation$ setu $ training$ documentation$ hel lines( elationshi 'uilding &com laint handling$ re airs$ re lacement olicy$ e7tras( Cther
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orrelation !etween Mar'eting auncPlan
and Stage-Gate ProcessIdea
*dea generation*dea screening &Gate,(
). Scoo%ing1reliminary mar"et$ technical and
financial assessment
. uild usiness +ase5ser needs-and-!ants studies
@om etitive and mar"et analysis@once t tests
Detailed technical assessment9usiness and financial analysis
0. Develo%#ent1roduct develo ment
*terations !ith cust omersDevelo test mar"etingand roduction lans
2. Testing and 1alidationFull customer tests
Test mar"etTrial roduction
3. &aunch
$irst cut at...mar"eting o'%ectivessi e-u &analysis ( of the mar"ettarget mar"et definitiondefining roduct conce t and strategyassesing mar"et and sales otential
Define %recisely...target mar"et and ositioning st rategy
roduct re#uirementsroduct 'enefits and features
target ricee7 ected sales and revenues
$irst cut at...reliminary mar"et launch lan
Develo% detailed #ar!et launch %lan:mar"eting communications
ricing$discounts$marginssalesforce and distri'utioncustomer service and su ort
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