1. Introducing New Market Offerings aka NPD 20

2. 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?

3. 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?

4. 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

5. 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

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-6 Table 20.4 Finding One Successful New Product

7. The New Product Development Decision Process

8. 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

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-9 Lateral Mapping Gas stations + food Cafeteria + Internet Cereal + snacking Candy + toy Audio + portable

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-10 Table 20.5 Product-Idea Rating Device

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-11 Concepts in Concept Development Product idea Product concept Category concept Brand concept Concept testing

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-12 Concept Testing Communicability and believability Need level Gap level Perceived value Purchase intention User targets, purchase occasions, purchasing frequency

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-13 Figure 20.6 Utility Functions Based on Conjoint Analysis

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-14 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

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-15 Figure 20.7 Product Life Cycle Sales for Three Product Types

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-16 Test Market Decisions How many test cities? Which cities? Length of test? What information to collect? What action to take?

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-17 Criteria for Choosing Rollout Markets Market potential Company’s local reputation Cost of filling pipeline Cost of communication media

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-18 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption

19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-19 Figure 20.6 Adopter Categorisation

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 20-20 Characteristics of an Innovation Relative advantage Compatibility Complexity Divisibility/Practicalities Communicability