Download presentation
Presentation is loading. Please wait.
1
Slides Created and Designed by Apple Mountain Software, Inc.
Marketing Charles W. Lamb, Jr. Joseph F. Hair, Jr. Carl McDaniel Notes Slides Created and Designed by Apple Mountain Software, Inc.
2
Categories of New Products
New-To-The-World New Product Lines Six Categories of New Products Product Line Additions Improvements/Revisions Repositioned Products Lower-Priced Products
3
New Product Introductions
Technology 1.1% Positioning 39.1% New Formulation 47.8% Packaging 8.6% New Market 3.4% Source: Statistical Abstract of the United States (1996), p. 548.
4
New Product Development Process
New Product Strategy Idea Generation Idea Screening Business Analysis Development Test Marketing Commercialization New Product
5
New Product Introductions in 1994
Food 3,883 Beverages 807 Health and Beauty 2,655 Household Products 378 Pet Products 161 Miscellaneous 87 Source: Statistical Abstract of the United States (1996), p. 548.
6
Why Some New Products Succeed
Success Factors Good match between product and market needs Adequate target market size Offers a clear, meaningful benefit Distinguishable from substitute products Offers unique, superior value Organizational commitment to new product development Failure Factors Poor match between product and market needs Overestimation of market size Incorrect positioning Inappropriate price Inadequate distribution Poor promotion
7
Organization for New Product Development
Committee Structures Used to Facilitate New Product Development New Product Department Venture Teams Simultaneous Product Development
8
The Product Life Cycle Dollars Time Introductory Stage Growth Stage
Maturity Stage Decline Stage Product Category Sales Dollars Product Category Profits Time
9
The Importance of New Products
Sales volume Sales volume Dollars Profits Profits + – Time
10
ADOPTERS’ CATEGORIES BASED ON INNOVATIVENESS Percentage of Adopters
Early Adopters 13.5% Early Majority 34% Late Majority 34% Innovators 2.5% Laggards 16% Time
11
The Diffusion Process Relationship of the Diffusion Process to the
Product Life Cycle Introduction Growth Maturity Decline 100 90 80 70 60 50 40 30 20 10 Product life cycle curve Early majority Cumulative Percentage of Adoption Late majority Early adopters Innovators Laggards Diffusion curve Time of Adoption of Innovations
12
Rate of Adoption Characteristics Affecting New Product Diffusion
Complexity Compatibility Characteristics Affecting New Product Diffusion Relative Advantage Observability Trialability
Similar presentations
