20 Introducing New Market Offerings 1

Copyright © 2011 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

What is a Venture Team?  A venture team is a cross-functional group charged with developing a specific product or business. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-3

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-4 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

Figure 20.1 New-Product Development Decision Process Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-5

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-6 Ways to Find Great New Ideas  Run informal sessions with customers  Allow time off for technical people to putter on pet projects  Make customer brainstorming a part of plant tours  Survey your customers  Undertake “fly on the wall” research to customers

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-7 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

Consumer Goods Market Testing  Sales-Wave Research  Simulated Test Marketing  Controlled Test Marketing  Test Markets Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-8

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-9 Test Market Decisions  How many test cities?  Which cities?  Length of test?  What information to collect?  What action to take?

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall What is Adoption? Adoption is an individual’s decision to become a regular user of a product.

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption

Figure 20.7 Adopter Categorization on the Basis of Relative time of Adoption Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-12