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

2. 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

3. 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

4. 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 1

5. 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

6. 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 2

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

8. 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

9. 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 2

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

11. 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

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

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

14. Product Characteristics and the Rate of Adoption
Chapter 10
Product Characteristics and the Rate of Adoption
Trialability
Observability
Relative Advantage
Compatibility
Complexity
On Line 5

15. 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

16. 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