Introducing New Market Offerings aka NPD 20
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-2 Chapter Questions What challenges does a company face in developing new products and services? What organizational structures and processes do managers use to manage new-product development? What are the main stages in developing new products and services?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-3 Chapter Questions (cont.) What is the best way to manage the new-product development process? What factors affect the rate of diffusion and consumer adoption of newly launched products and services?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-4 Categories of New Products New-to-the-world Cost reductions New product lines Additions Improvements Repositionings
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-5 Factors That Limit New Product Development Shortage of ideas Fragmented markets Social and governmental constraints Cost of development Capital shortages Faster required development time Shorter product life cycles
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-6 Table 20.4 Finding One Successful New Product
The New Product Development Decision Process
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-8 Idea Generation: Creativity Techniques Attribute listing Forced relationships Morphological analysis Reverse assumption analysis New contexts Mind mapping
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-9 Lateral Mapping Gas stations + food Cafeteria + Internet Cereal + snacking Candy + toy Audio + portable
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Table 20.5 Product-Idea Rating Device
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Concepts in Concept Development Product idea Product concept Category concept Brand concept Concept testing
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Concept Testing Communicability and believability Need level Gap level Perceived value Purchase intention User targets, purchase occasions, purchasing frequency
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 20.6 Utility Functions Based on Conjoint Analysis
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Marketing Strategy Target market’s size, structure, and behavior Planned price, distribution, and promotion for year one Long-run sales and profit goals and marketing-mix strategy over time
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 20.7 Product Life Cycle Sales for Three Product Types
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Test Market Decisions How many test cities? Which cities? Length of test? What information to collect? What action to take?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Criteria for Choosing Rollout Markets Market potential Company’s local reputation Cost of filling pipeline Cost of communication media
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 20.6 Adopter Categorisation
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Characteristics of an Innovation Relative advantage Compatibility Complexity Divisibility/Practicalities Communicability