19 Introducing New

Market Offerings

Chapter Questions

What challenges does a company face in developing new products and services? What organizational structures and processes do managers use to oversee new-product development? What are the main stages in developing new products and services?

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the United States edition of Marketing Management, 14e.

19-2

Chapter Questions

What is the best way to manage the newproduct development process? What factors affect the rate of diffusion and consumer adoption of newly launched products and services?

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the United States edition of Marketing Management, 14e.

19-3

19-4 .Categories of New Products New to the World Additions Improvements Repositionings Cost reductions Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the United States edition of Marketing Management. 14e.

Authorized adaptation from the United States edition of Marketing Management. 14e. 19-5 .The Innovation of Chotukool Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.

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 Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the United States edition of Marketing Management. 19-6 . 14e.

Authorized adaptation from the United States edition of Marketing Management. 19-7 . 14e.Table 19.1 Finding One Successful Product Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.

What is a Venture Team?  A venture team is a cross-functional group charged with developing a specific product or business. Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 19-8 . Authorized adaptation from the United States edition of Marketing Management. 14e.

14e. 19-9 . Authorized adaptation from the United States edition of Marketing Management.Criteria for Staffing Venture Teams       Desired team leadership style Desired level of leader expertise Team member skills and expertise Level of interest in concept Potential for personal reward Diversity of team members Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.

14e.Figure 19. Authorized adaptation from the United States edition of Marketing Management.1 New-Product Development Decision Process Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 19-10 .

Authorized adaptation from the United States edition of Marketing Management. 14e.Ways to Find Great New Ideas      Run informal sessions with customers Allow time off for technical people to putter on pet projects (leisurely) Make customer brainstorming a part of plant tours Survey your customers Undertake “fly on the wall” research to customers (unseen observer) Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 19-11 .

Authorized adaptation from the United States edition of Marketing Management. 14e.More Ways to Find Great Ideas      Use iterative rounds with customers Set up a keyword search to scan trade publications Treat trade shows as intelligence missions Have employees visit supplier labs Set up an idea vault Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 19-12 .

Drawing Ideas from Customers     Observe customers using product Ask customers about problems with products Ask customers about their dream products Use a customer advisory board or a brand community of enthusiasts to discuss product Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the United States edition of Marketing Management. 19-13 . 14e.

Demand-First Innovation and Growth (DIG) Framework Demand Landscape Map articulated and latent needs Opportunity Space Getting market perspectives from different angles Strategic Blueprint How can the NP fit into customers lives and be distinguished from competitors Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 14e. Authorized adaptation from the United States edition of Marketing Management. 19-14 .

Idea Generation: Creativity Techniques       Attribute listing Forced relationships Morphological analysis Reverse assumption analysis New contexts Mind mapping Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 14e. Authorized adaptation from the United States edition of Marketing Management. 19-15 .

14e. Authorized adaptation from the United States edition of Marketing Management. 19-16 .Lateral Mapping      Gas stations + food Cafeteria + Internet Cereal + snacking Candy + toy Audio + portable Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.

2 Product Idea Rating Device Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the United States edition of Marketing Management.Table 19. 19-17 . 14e.

Authorized adaptation from the United States edition of Marketing Management.2 Forces Fighting New Ideas Source: With permission of Jerold Panas. Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 14e.Figure 19. 19-18 . Young & Partners Inc.

3 Product and Brand Positioning Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 14e.Figure 19. Authorized adaptation from the United States edition of Marketing Management. 19-19 .

purchase occasions.Concept Testing       Communicability and believability Need level Gap level Perceived value Purchase intention User targets. Authorized adaptation from the United States edition of Marketing Management. 19-20 . purchasing frequency Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 14e.

19-21 . 14e.Figure 19.4 Conjoint Analysis Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the United States edition of Marketing Management.

5 Utility Functions Based on Conjoint Analysis Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the United States edition of Marketing Management. 19-22 . 14e.Figure 19.

Authorized adaptation from the United States edition of Marketing Management. 19-23 . 14e.Figure 19.6 Product Life-Cycle Sales for Three Types of Products Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.

3 Projected Five-Year Cash Flow Statement (in Rupees Million) Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.Table 19. 14e. 19-24 . Authorized adaptation from the United States edition of Marketing Management.

19-25 . Authorized adaptation from the United States edition of Marketing Management. 14e.Prototype Testing    Alpha testing Beta testing  Rank-order method  Paired-comparison method  Monadic-rating method Market testing Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.

19-26 . 14e. Authorized adaptation from the United States edition of Marketing Management.Consumer Goods Market Testing     Sales-Wave Research Simulated Test Marketing Controlled Test Marketing Test Markets Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.

14e. Authorized adaptation from the United States edition of Marketing Management.Test Market Decisions      How many test cities? Which cities? Length of test? What information to collect? What action to take? Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 19-27 .

Timing of Market Entry    First entry Parallel entry Late entry Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 19-28 . 14e. Authorized adaptation from the United States edition of Marketing Management.

19-29 . 14e. Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.What is Adoption? Adoption is an individual’s decision to become a regular user of a product. Authorized adaptation from the United States edition of Marketing Management.

Authorized adaptation from the United States edition of Marketing Management. 19-30 .Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 14e.

USA. London. 14e.Figure 19. Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.ord/wiki/Everett_Rogers. 19-31 . Free Press.7 Adopter Categorization on the Basis of Relative time of Adoption Source: Tungsten. (1962) Diffusion of Innovations. E. Based on Rogers. Authorized adaptation from the United States edition of Marketing Management.wikipedia. http://en. NY.

19-32 . 14e. Authorized adaptation from the United States edition of Marketing Management.Characteristics of an Innovation      Relative advantage Compatibility Complexity Divisibility Communicability Copyright © 2013 Dorling Kindersley (India) Pvt Ltd.

19-33 .For Review    What challenges does a company face in developing new products and services? What organizational structures and processes do managers use to oversee new-product development? What are the main stages in developing new products and services? Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 14e. Authorized adaptation from the United States edition of Marketing Management.

Authorized adaptation from the United States edition of Marketing Management. 14e.For Review   What is the best way to manage the newproduct development process? What factors affect the rate of diffusion and consumer adoption of newly launched products and services? Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. 19-34 .

Sign up to vote on this title
UsefulNot useful