NEW PRODUCTS AND WHY THEY SUCCEED OR

FAIL

James JohnsonJohn Lacy IIJason Coan

Newness Compared with Existing Products

What is a New Product?

Newness from the Consumer’s Perspective

What is a New Product?

Newness

ContinuousInnovation

Requires no new learning by consumers

New improved shaver, detergent,

and toothpaste

Gain consumer awareness and

wide distribution

DynamicallyContinuousInnovation

Disrupts consumer’s

normal routine but does not require

totally new learning

Electric toothbrush,

compact disk player, and

automatic flash unit for cameras

Advertise points of difference and

benefits to consumers

Discontinuous

Innovation

Requires new learning and consumption patterns by consumers

Wireless router, digital video recorder, and electric car

Educate consumers

through product trial and personal

selling

Basis of Comparison

Definition

Examples

Marketing Strategy

Newness in Legal Terms

What is a New Product?

Newness from the Organization’s

Perspective

What is a New Product?

Newness from the Organization’s Perspective

Level 1

Product Line Extension

Level 2Significant Jump in TechnologyUsing Established Brand in a New Market

Level 3

Involves a Radical/Revolutionary Change