DEVELOPING NEW PRODUCTS AND SERVICES C HAPTER 10

Product Line and Product Mix Classifying Products Type of User  Consumer goods  Business goods Degree of Tangibility Services and New-Product Development THE VARIATIONS OF PRODUCTS

Classification of Consumer Goods  Convenience goods  Shopping goods  Specialty goods  Unsought goods Classification of Business Goods  Production Goods  Support Goods  Installations  Accessory Equipment  Supplies  Services CLASSIFYING CONSUMER AND BUSINESS GOODS

Classification of consumer goods

What is a New Product? Newness Compared with Existing Products Newness in Legal Terms Newness from the Company’s Perspective Newness from the Consumer’s Perspective NEW PRODUCTS AND WHY THEY SUCCEED AND FAIL

Consumption effects define newness

Marketing Reasons for Failures  Insignificant “point of difference”  Incomplete market and product definition  Too little market attractiveness  Poor execution of the marketing mix  Poor product quality or sensitivity  Bad timing  No economical access to buyers NEW PRODUCTS AND WHY THEY SUCCEED AND FAIL

Stages in the new-product process THE NEW-PRODUCT PROCESS

New-Product Strategy Development Objectives of the Stage: Identify Markets and Strategic Roles 3M: Cross-Functional Teams, Six Sigma, and Lead Users THE NEW-PRODUCT PROCESS

Idea Generation Customer and Supplier Suggestions Employee and Co-Worker Suggestions Research and Development Breakthroughs Competitive Products Screening and Evaluation Internal Approach External Approach THE NEW-PRODUCT PROCESS

Market Testing Test Marketing Simulated Test Markets When Test Markets Don’t Work Commercialization The Complexities of Commercialization  The Risks and Uncertainties of the Commercialization Stage Speed as a Factor in New-Product Process THE NEW-PRODUCT PROCESS

Marketing information and methods used in the NPD