To determine ideas strategic fit

Gate 1: Idea Generation and initial

screening
Kill decisions that received poor
scoring in 1) - overly rigid STAGE 1: prelim assessment
process leads to lost opp's
Gate 2: Secondary screening
decisions
Detailed investigation, customer,
market & competitor analysis STAGE 2: business case prep

Gate 3: decisions on business New products categories: New to

Marketing plan development
Will the marketing plan lead to
acceptance of product in the
market and is degree of
acceptance sufficient to warant
further development
Try out In small geo areas
Field Test Market Test Market
Measures:
Awareness
Trial Laboratory test markets
Repeat Buying
1. Forgo market testing & directly
to rolloot region by region (use if
low risk)
2. launch in 10% of country & rely
on fast sales results data
Conduct post implementation
review to assess how the launch
is going & make adjustments
case
STAGE 3: Development
Gate 4: Post development review
decisions
STAGE 4: Testing & validation
Gate 5: Precommercialisation
business analysis
Stage 5: Commercialisation
decisions
Lengthening beyond its current
range of variables, such as size,
price
Upward stretch = trading up.
Line Stretching
Downward stretch = adding
products to serve the lower end
of the market e.g Merc & minicar
the world (5%), New to firm, Line
extentions & Product
improvements (89%)
New product development
Process (Stagegate system)
New product development
Lengthens the product line by
adding items within present range
Objectives: to satisfy more
customers, increase sales &
Line Filling
profits, placate dealers & ward off
competition
Features are the
tangible/intangible attributes
given to products by its
designers
Benefits are the solutions to
customer problems or needs
delivered by the product
Goods classification
Convenience goods and services
Shopping goods and services
Speciality goods and services
Unsought goods and services
Conformance
Serviceability
e.g Toothpaste
Max distribution, consumer brand
& recognition advertising, instore
promotions
e.g TV, cars
Limited # of stores, personal
selling, sellers usually offers
financing & post purchase
e.g Stereo equip, Guitars
limited distribution, high price,
brand & uniqueness emphasis
e.g medical services, insurance
Personal selling, strong
promotion
Meets certain requirements
speed and ease of retaining
repair

Introducing new products that BARNEY - Come See A Purple

differ significantly from those in Aesthetics subjective
Line extensions Quite Fluffy Real Dinosaur
existing lines
Performance operating characteristics
- = Greater costs & financial risks Module 11
8 dimensions of quality of Quality
+ = new market segments, new Managing Product lines - goods
anchor points strategies Product Decisions Features
Perform satisfactory over a given
time
Use of a brand name established Reliability
in one product class as a vehicle
for enter another product class Brand extensions
e.g HP Durability Measure of the life of the product

Should b e reviewed regularly and
if poor contribution to product - Dropping products
drop it and focus on profitabile
products
Selling product & also providing a
Product systems
complementary product/service
as a package e.g HP sells printers
with ink catridges
The company provides each
product with a distinctive name
+ = reduces company risk in that
failure not associated to other
brands
- = can limit flexibility to changing
market conditions if brand name
is e.g KFC - issue when fried not
considered healthy
Uses the same brand nameto
cover a group of products
+ = reduced costs & transfer of
customer satisfaction - easier to
launch product modifications,
impact of shelf facings /
promotions
- = when it covers products that
range in quality consumers
become confused, risk of
tarnishing the whole line is one
product bad
Brand name is the part that can
b e vocalised (e.g Sony)
Brand mark is not vocalised e.g a
symbol
Trademark is a brand or part of a
brand that legally belongs
exclusively to the seller
4 major asset categories: Brand
name awareness, brand loyalty,
perceived quality & brand
associations
Individual Branding
Branding strategies
Family Branding
Globalisation
Co-Branding
uses multiple brand names with a
single product or service offering
Tangibles Appearance of physical
characteristics
Competence, courtesy &
Assurance
credibility
5 Dimensions of service quality
Reliability
(TARRE) Dependibility
Responsiveness
Branding Promptness & helpfulness
1. Observation
Empathy
Branding identifies and helps
differentiate goods or services 2. capturing data
3. Reflection & analysis
Empathic design process to
uncover new customer needs
4. Brainstorming & solutions
Qualitative product design &
market research technique where
5. Developing prototypes customers are observed in their
own environment e.g focus
groups, interviews, surveys
- = Difficult as meaning of brand
name can evoke negative
associations in some countries.
strong local brands & heavy
investment required
+ - most succesful e.gs are Coca
Cola, Nike, IBM

e.g Irish Bailey's cream Liquor Ice

cream