Lamb, Hair, McDaniel

2010-2011

CHAPTER 11

Developing and Managing Products

New-Product Development Process

New-Product Strategy
Idea Generation Idea Screening Business Analysis Development Test Marketing Commercialization New Product
2

LO2

Test Marketing
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Test Marketing

foodcom.com/signup

Online

LO2

Alternatives to Test Marketing

Single-source research using supermarket scanner data Simulated (laboratory) market testing Online test marketing
http://www.newproductworks.com

LO2

Online
4

Success Factors
Factors in Successful New Products Match between product and market needs Different from substitute products Benefit to large number of people

NOTE: Supplemental content not in book.

LO2

Slide 24: Why New Products Fail

No discernible benefits Poor match between features and customer desires Overestimation of market size Incorrect positioning Price too high or too low Inadequate distribution Poor promotion Inferior product

Diffusion

Diffusion
The process by which the adoption of an innovation spreads.

LO4

Categories of Adopters
Innovators Early Adopters Early Majority Late Majority

Laggards

LO4

Product Characteristics and the Rate of Adoption

Complexity Compatibility Relative Advantage Observability Trialability
http://www.electronicgadgetdepot.com

LO4

Online
9

Product Life Cycle

Introductory Growth Stage Stage Maturity Stage Decline Stage

Sales

Dollars

Profits

Time

LO5

10