developing & managing products chapter 11. new product development new product strategyidea...
TRANSCRIPT
Developing & Managing Products
Chapter 11
New Product DevelopmentNew Product Strategy
Idea Generation
Idea Screening
Business Analysis
Development
Test Marketing
Commercialization
New-product Strategy
Link product development to MKT strategy 3M
Identify markets and strategic roles Environmental
scanning SWOT analysis
Source: http://www.logotecs.com
Idea Generation
Customers Employees Distributors Vendors Competitors Research &
Development Consultants
Source: http://www.clker.com/clipart-9721.html
Idea Screening
First filter
Committee Reviews
Concept test
Business Analysis
Last checkpoint before capital is committed Look at product and marketing strategy
needed to commercialize it Preliminary figures
Development
“Paper into prototype” Testing against standards
Work on marketing mix
Team-based analysis Internet Customer panels
Market Testing
Company chooses a specific market, based on criteria
Advantages Disadvantages Internet
Commercialization
Positioning and launching a product Most expensive step Slotting fee Failure fee
Diffusion of Innovation
Innovators (2.5%)
Early adopters (13.5%)
Early majority (34%)
Late majority (34%)
Laggards (16%)
Source: http://tutor2u.net
Diffusion of Innovation
Factors for Adoption Complexity Compatibility Relative advantage Observability Trialability
Implications
The Product Life Cycle
Introduction Stage Growth Stage Maturity Stage Decline Stage
Introduction Stage
Create awareness and encourage customers to try the product Advertising
Primitive demand
Distribution issues Pricing issues
Growth Stage
Rapid increases in sales Competition Advertising
Selective demand Who is buying? Distribution
Maturity Stage
Slowing sales and decreasing profits Marketing strategy
Hold market share
Decline Stage
Sales and profits drop
Marketing strategy Deletion Harvesting
Product Cycle Dimensions
Length Shape
Generalized product High learning
product Low learning
product Fashion product Fad product
Source: www.your90s.com
Why do New Products Fail?
Insignificant “point of difference” Incomplete market and product
definition before development starts Too little market attentiveness Poor execution of marketing mix Bad timing No economical access to buyers