Developing and Managing Products Chapter 10 10 Developing and Managing Products Prepared by Deborah Baker Texas Christian University

Chapter 10 Learning Objectives Explain the importance of developing new products and describe the six categories of new products 2. Explain the steps in the new-product development process 3. Explain why some products succeed and others fail

Learning Objectives (continued) Chapter 10 Learning Objectives (continued) 4. Discuss global issues in new-product development 5. Explain the diffusion process through which new products are adopted 6. Explain the concept of product life cycles

Categories of New Products Chapter 10 Categories of New Products New-To-The-World New Product Lines Product Line Additions Improvements/Revisions Repositioned Products Lower-Priced Products On Line http://www.newproductworks.com 1

New-Product Development Process Chapter 10 New-Product Development Process New-Product Strategy Idea Generation Idea Screening Business Analysis Development Test Marketing Commercialization New Product 2

Sources of New-Product Ideas Chapter 10 Idea Generation Customers Employees Distributors Competitors R & D Consultants Creative Thinking Sources of New-Product Ideas On Line http://www.ideo.com 2

Considerations in Business Analysis Stage Chapter 10 Business Analysis Considerations in Business Analysis Stage Demand Cost Sales Profitability 2

Development Creation of prototype Marketing strategy Chapter 10 Development Creation of prototype Marketing strategy Packaging, branding, labeling Manufacturing feasibility Final government approvals if needed 2

Alternatives to Test Marketing Chapter 10 Alternatives to Test Marketing Single-source research using supermarket scanner data Simulated (laboratory) market testing Online test marketing On Line http://www.bandaid.com 2

Distribution Shipments Chapter 10 Commercialization Production Inventory Buildup Distribution Shipments Sales Training Trade Announcements Customer Advertising Steps in Marketing a New Product 2

Factors in Successful New Products Chapter 10 Success Factors Match between product and market needs Different from substitute products Factors in Successful New Products Benefit to large number of people 3

Global Issues Single product worldwide Modification of products Chapter 10 Global Issues Single product worldwide Modification of products Multiple products in multiple countries 4

Categories of Adopters Chapter 10 Categories of Adopters Laggards Late Majority Early Majority Early Adopters Innovators 5

Product Characteristics and the Rate of Adoption Chapter 10 Product Characteristics and the Rate of Adoption Trialability Observability Relative Advantage Compatibility Complexity On Line http://www.electronicgadgetdepot.com 5

Product Life Cycle Introduction PLC Has Growth Implications for Chapter 10 Product Life Cycle PLC Has Implications for Sales and Profits At Each Stage Introduction Growth Maturity Decline 6

Diffusion Process and PLC Curve Chapter 10 Diffusion Process and PLC Curve Introduction Growth Maturity Decline Product life cycle curve Sales Early majority Late majority Early adopters Innovators Laggards Diffusion curve 6