Developing Market Offerings NEN Advanced Courses Getting to Market: Commercializing your Idea

Marketing Myopia Customer Oriented vs. Product Oriented Shadow of Obsolescence Population Myth Production Pressures Expansion of Demand vs. importance of marketing and customer needs Danger of R&D Marketing is a step child Organization as a customer creating and Customer Satisfying Organism

Innovation vs. Imitation Totally new to the world product idea through experience and research Minor modifications, Enhancements, Extensions

Integrating technology and market strategy Invention vs. innovation Process vs. product innovation Product vs. business model innovation Product-market vs. resource-based views Lifecycle, S-curve and value chain The role of the ecosystem in success today – Channels, third party developers, suppliers

Capturing the fruits of innovation Appropriability – Strong and weak Dominant design – Innovation in product/process over lifecycle Complementary/specialized assets – Generic, specialized, co-specialized Integration, disintegration, contracting – The hollow corporation? Ref: Teece, “Profiting from technological innovation”

Developing Market Offerings The market need The offering and its value to customers – First to market or fast-follower? Advantages and disadvantages Developing the offering (product + service) – Special challenges with services Revenue generation Follow-on offering

The New Product Development Process Idea Generation Idea Screening Concept Development & Testing Marketing Strategy Development & Business Analysis Product Development Test Marketing Commercialization Fig 4.2: The New Product Development Process; Chapter 4; Marketing Management by Rajiv Lal

Nature of Product/Service Creates Customer Goal Nature of Customer Needs Nature of Market Research Market-Driven StrategyMarket-Driving Strategy Incremental InnovationBreakthrough Innovation New Product, Line Extension Truly New Product Platform, New Category Satisfy/Delight Current Customers Create Customers LatentExpressed Quantitative Research Methods (e.g., customer surveys, test markets) Qualitative Research Methods (e.g., lead-user observations, focus groups) Fig 4.3; Chapter 4; Marketing Management by Rajiv Lal Serve expressed customer needsCreate Customers

Crossing the chasm with a new offering Discontinuous innovations and disruptive technologies The chasm between early adopters and pragmatists kills many companies The need for the ‘whole product’ = solution How to ensure that you hit the bowling alley, if not the tornado Ref: Geoffrey Moore, ‘Crossing the chasm’

Case Discussion Case: Free Markets Online Chapter 5,Marketing Management, Text and Cases: Rajiv Lal, John Quelch and Kasturi Rangan, Tata McGraw Hill Publication

References Marketing Myopia, Theodore Levitt, Harvard Business Review Chapter 4, Creating Value, Marketing Management, Text and Cases: Rajiv Lal, John Quelch and Kasturi Rangan, Tata McGraw Hill Publication