NEW MARKET OFFERINGS

SANA ZAHID NAVEEN ZUBERI

EXECUTIVE SUMMARY
In

the present era of fast changing market dynamics in marketing, where everyone is trying its level best to capture either the existing market or creating new markets through their innovative products. Due to technological revolution the world has practically turned into Global village. Multinationals have been able to develop products according to local needs. Due to credible market research and customer needs they have been able to create new markets. Within existing markets due to new innovative approach they have increased the market base and also maintained their leadership position. Local industry has also been able to penetrate better to get share from multinationals with quality products reinforced with better strategies and cost effectiveness.

CHALLENGES IN NEW PRODUCTS DEVELOPMENT
New products failure 2. Poor marketing Plan 3. Marketing plan implementation

CLASSIC EXAMPLES OF NEW MARKET OFFERINGS
     

VIDEO / AUDIO IPODS CELLULAR TELEPHONES I MATS ATM CARDS FROM FOREIGN BANKS SKIN / HAIR CARE PRODUCTS MULTI FUNCTIONALS COMPUTERS / PRINTERS

HINDERANCE FACTORS IN NEW PRODUCTS DEVELOPMENT
Shortage of ideas in FMCG  Higher R & D cost  Shorter product life cycle

ORGANIZATIONAL ARRANGEMENTS
Budgeting for new products development  Organizing new products development

NEW PRODUCT DEVELOPMENT DECISION PROCESS

Idea generation
 Called

concept generation or ideation  Ideas obtained from customers by employing user innovation  Ideas obtained from R&D etc  Major 2 sources of new product ideas

Idea screening
 Second

step and first decision to spend resources  Example  Two types of errors must be avoided; go and drop  Three questions considered by the screeners

Concept development and Testing
Concept development:  Develop marketing and engineering details  Example Concept testing:  Concept statement presented to consumers for their reactions  Example  Concept should be communicated in the form of verbal description, sketch, photograph, physical appearance, prototype etc.  Customers are asked questions so as to check whether the concept has strong appeal

Marketing strategy development
 Designing

a marketing strategy for new product based on product concept This stage considers three parts:  First-target market size, sales and profit goals for first few years  Second-planned price, distribution strategy for first year  Third-long run sales and marketing mix strategy

Business Analysis
A review of sales, profits and cost projections of the new product  Estimating total sales  Estimating costs and profits

Product Development
 Developing

the product concept into physical product  R&D designs a prototype, that can be produced quickly at budgeted cost  Example of a mouthwash  After prototype-alpha and beta testing

Market testing
 The

product and marketing program tested in a more realistic market settings  Product is ready to be dressed up with a brand name and packaging and put into market testing  Three major methods-standard, controlled and simulated test markets

Commercialization
 Introducing

a new product into market  Company faces high costs, may also have to spent on advertising and sales promotion  Three things taken into consideration: -when -where -to whom

Consumer Adoption Process
Focuses on mental process of an organization
    

Awareness: The consumer becomes aware of the innovation but lacks information about it. Interest: The consumer is stimulated to seek information about the innovation. Evaluation: The consumer considers whether to try the innovation Trial: The consumer tries the innovation to improve his or her estimate of its value. Adoption: The consumer decides to make full and regular use of innovation.

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