UNIT 5 NEW PRODUCT DEVELOPMENT Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

AFTER LEARNING THIS UNIT YOU SHOULD BE ABLE TO: 1.Explain what a new product is. 2.Understand how a new product is launched. 3.Know the steps of developing a new product. 4.Find out the ways of developing new product ideas. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Warm-up “Once an organization loses its spirit of pioneering and rests on its early work, its progress stops” —Thomas Watson What’s your understanding of the above saying? How important do you think innovation is to a business? Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

I. What Is a New Product? A product can be new to the world, to the market, to the producer or seller, or to some combination of these. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Categories of new products Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Application: Can you list some new products that fit into the six categories mentioned above? Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Ⅱ.The New Product Development Process Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

New-product strategy 1. Idea generation 2. Idea screening 3. Business analysis 4. Development 5. Test marketing 6. Commercialization Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

1. Idea generation Sources： Customers, employees, distributors, competitors, research and development, and consultants. Two useful ways for generating new-product ideas A. brainstorming B. focus group Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

2. Idea screening What is screening? Eliminating ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason. E.g. Royal Dutch/Shell, “Game Changers” Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

3. Business analysis Preliminary figures for demand, cost, sales, and profitability are calculated. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

4. Development Early stage :prototype of the product In the process: Decision on the product’s packaging, branding, labeling, and so forth. Mapping out preliminary promotion, price, and distribution strategies. Examining the technical feasibility of manufacturing the product at an acceptable cost. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

5. Test marketing Introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

6. Commercialization Several tasks : Ordering production materials and equipment; Starting production; Building inventories; Shipping the product to field distribution points; Training the sales force; Announcing the new product to the trade Advertising to potential customers Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Discussion: Try to find one new product development story and share it with your classmates. Suggested story could be about Barbie, Walkman, or Wahaha(娃哈哈营养快线). Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun