Introducing New Market Offerings 20 Introducing New Market Offerings Marketing Management, 13th ed

Categories of New Products New-to-the-world New product lines Additions Improvements Repositionings Cost reductions Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 20-2

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 © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 20-3

Figure 20.2 The New Product Development Decision Process Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 20-4

Consumer Goods Market Testing Sales-Wave Research Simulated Test Marketing Controlled Test Marketing Test Markets Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 20-5

Test Market Decisions How many test cities? Which cities? Length of test? What information to collect? What action to take? Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 20-6

What is Adoption? Adoption is an individual’s decision to become a regular user of a product. Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 20-7

Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 20-8

Figure 20.6 Adopter Categorization Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 20-9