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Lamb, Hair, McDaniel

CHAPTER 11

Developing and Managing Products

2010-2011

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New-Product Development Process

New-Product Strategy

Idea Generation

Idea ScreeningBusiness Analysis

DevelopmentTest MarketingCommercialization

New ProductLO2

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Test Marketing

TestMarketing

Online

foodcom.com/signup

The limited introduction of a product

and a marketing program to

determine the reactions of potential

customers in a market situation.

LO2

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Alternatives toTest Marketing

Single-source research using supermarket scanner data

Simulated (laboratory) market testing

Online test marketing

Online

http://www.newproductworks.com

LO2

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Success Factors

NOTE: Supplemental content – not in book.

Factors in SuccessfulNew Products

Match between product and market needs

Different from substitute products

Benefit to large number of people

LO2

Slide 24: Why New Products Fail

• No discernible benefits • Poor match between features and customer

desires • Overestimation of market size Incorrect

positioning• Price too high or too low• Inadequate distribution • Poor promotion• Inferior product

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Diffusion

The process by which the adoption of an

innovation spreads.

Diffusion

LO4

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Laggards

Late Majority

Early Majority

Early Adopters

Innovators

LO4

Categories of Adopters

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Trialability

Observability

Relative Advantage

Compatibility

Complexity

Online

http://www.electronicgadgetdepot.com

LO4

Product Characteristics and the Rate of Adoption

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Product Life Cycle

Time

Do

llar

s

Profits

SalesIntroductoryStage

GrowthStage

MaturityStage

DeclineStage

0

LO5