Launch Planning, Implementation, and

Management

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The Target Market Decision

 Alternative ways to segment a market

 end-use, geographic/demographic,
behavioral/psychographic, benefit
segmentation
 Micromarketing and mass customization
 Also consider the diffusion of innovation

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Using the Joint Space Map to Identify
Benefit Segments

Comfort
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2

Aqualine

1
Molokai
Islands
Fashion

Splash
Sunflare

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4
 Categories of Adopters in the
Diffusion Process
Innovators
Laggards 3%
16% Early Adopters
14%

Late Majority Early Majority

34% 33%
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Who are these adopters?

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Factors Affecting Diffusion of
Innovation

 Relative Advantage
 Compatibility
 Complexity
 Divisibility (or Trialability)
 Communicability (or Observability)

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 Product Replacement Strategies

Butt-on product The existing one is simply dropped when the new one is
replacement announced. Example: Ford's marketing of Mondeo and dropping of
Sierra.
Low-season switch Same as butt-on, but arranging the switch at a low point between
seasons. Tour companies use this switch when they develop their
new catalogs.
High-season Same as butt-on, but arranging the new item at the top of a season.
switch Example: Polaroid used this strategy often, putting new
replacement items out during the Christmas season.
Roll-in, roll-out Another version of butt-on, but arranged by a sequence of market
segments. Mercedes introduced its C series country by country.
Downgrading Keeping the earlier product along side the new, but with decreased
support. Example: The 386 chip stayed along side the 486, until the
Pentium was introduced.
Splitting channels Putting the new item in a different channel or diverting the existing
product into another channel. Example: Old electronic products
often end up in discounter channels.
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Product Positioning

Who -- Why -- How

 To whom are we marketing?
 Why should they buy it?
 How do we best make the claim?

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To Whom Are We Marketing?

 Users vs. non-users (primary vs. selective demand)

 Target market criteria (demographic, geographic,
psychographic, benefit segmentation)
 Everybody -- no narrowing down (mass customization,
Post-It notes)

The real issue here is commitment -- by all NPD

participants and by management

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 Why Should They Buy It?

 Concept Test Statement used for testing and for

guiding technical development (e.g., QFD
“Whats”)
 Key reasons customers react to the question “How
likely would you be to buy this if we marketed it?”
during Product Use Test
 Formatted in three ways:
 Solves major problem current products do not.
 Better meet needs and preferences.
 Lower price than current items. 11
 How Do We Best Make the Claim?

Product Position Statement:

“Buyers in the target market should buy our product
rather than others being offered or used
because_______________________.”
 Can be stated as one or more features (what it is).
 Can be stated as a function (how it works).
 Can be stated as one or more benefits (how the user
gains).
 Can be stated as a surrogate (no features, functions,
benefits).
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The Launch Management System
1. Spot potential problems.
2. Select those to control.
 Consider expected impact/damage.
3. Develop contingency plans for the management of
problems.
4. Design the tracking system.
 Select variables.
 Devise measuring system.
 Select trigger points.

Adage: in driving a car, it is the potholes you don’t know

about (or forget about) that cause you damage. 14
Decision Model for Building Launch
Control Plan

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A Sample Launch Management Plan

Potential Problem
Salespeople fail to contact general-purpose market at
prescribed rate.
Tracking
Track weekly sales call reports (plan is for at least 10
general-purpose calls per week per rep).
Contingency Plan
If activity falls below this level for three weeks running, a
remedial program of one-day district sales meetings will be
held.
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Another Problem Illustrated

Potential Problem
Potential customers are not making trial purchases of the
product.
Tracking
Begin a series of 10 follow-up calls a week to prospects.
There must be 25% agreement on product's main feature
and trial orders from 30% of those prospects that agree on
the feature.
Contingency Plan
Special follow-up phone sales calls to all prospects by reps,
offering a 50% discount on all first-time purchases.
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