1. Lecture on Developing New Products and Services

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

3. CLASSIFYING CONSUMER AND BUSINESS GOODS
Classification of Consumer Goods
Convenience goods
Shopping goods
Specialty goods
Unsought goods

4. Classification of consumer goods

5. CLASSIFYING CONSUMER AND BUSINESS GOODS
Classification of Business Goods
Production Goods
Support Goods
Installations
Accessory Equipment
Supplies
Services

6. NEW PRODUCTS AND WHY THEY SUCCEED AND FAIL
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

7. Consumption effects define newness

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

9. NEW-PRODUCT PROCESS

10. 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

11. THE NEW-PRODUCT PROCESS
Idea Generation
Customer and Supplier Suggestions
Employee and Co-Worker Suggestions
Research and Development Breakthroughs
Competitive Products

12. THE NEW-PRODUCT PROCESS
Screening and Evaluation
Internal Approach
External Approach

13. THE NEW-PRODUCT PROCESS
Business Analysis
Development
Market Testing
Test Marketing

14. Six important U.S. test markets

15. THE NEW-PRODUCT PROCESS
Market Testing
Simulated Test Markets
When Test Markets Don’t Work

16. THE NEW-PRODUCT PROCESS
Commercialization
Burger King’s French Fries: The Complexities of Commercialization
The Risks and Uncertainties of the Commercialization Stage
Slotting fee
Failure fee
Speed as a Factor in New-Product Process

17. Marketing information and methods used in the new-product process

18. Product
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchanges for money or some other unit of value.

19. Product Line
A group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.

20. Consumer Goods
Products purchased by the ultimate consumer.

21. Business Goods
Products that assist directly or indirectly in providing products for resale.

22. Convenience Goods
Items that the consumer purchases frequently and with a minimum of shopping effort.

23. Shopping Goods
Items for which the consumer compares several alternatives on criteria such as price, quality, or style.

24. Specialty Goods
Items that a consumer makes a special effort to search out and buy.

25. Unsought Goods
Items that the consumer either does not know about or knows about but does not initially want.

26. Production Goods
Items used in the manufacturing process that become part of the final product.

27. Support Goods
Items used to assist in producing other goods and services.

28. Protocol
A statement that, before product development begins, identifies (1) a well-defined target market; (2) specific customer’ needs, wants, and preferences; an (3) what the product will do.

29. New-Product Process
The sequence of activities a firm uses to identify business opportunities and convert them to a salable good or service.

30. New-Product Strategy Development
Defining the role for a new product in terms of the firm’s overall corporate objectives.

31. Six Sigma
A means to “delight the customer” by achieving quality through a highly disciplined process to focus on developing and delivering near-perfect products and services.

32. Idea Generation
Developing a pool of concepts as candidates for new products.

33. Screening and Evaluation
The third stage of the new product process which involves internal and external evaluations of the new-product ideas to eliminate those that warrant no further effort.

34. Business Analysis
Involves specifying the features of the product and the marketing strategy needed to commercialize it and making necessary financial projections.

35. Development
Turning the idea on paper into a prototype.

36. Market Testing
Exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.

37. Commercialization
Positioning and launching a new product in full-scale production and sales.

38. Slotting Fee
Payment manufacturer makes to place a new item on a retailer’s shelf.

39. Failure Fee
A penalty payment made by a manufacturer to compensate the retailer for sales its valuable shelf space never made.