1. Product Planning Chapter 2

2. Common Traits of Successful Product Planning Companies Clearly defined goals Seek future customer needs Build organizations dedicated to accomplishing focused goals Partner with customers in the development process

3. Definitions Mission – company’s central purpose, direction and scope Objectives – derive from mission, represent specific elements to be achieved by the company Goals – time-specific metrics to measure successful attainment of an objective Strategies – the way in which objectives are to be realized Programs – tactical methods to execute specific strategies

4. New Product Strategy Four general strategies for product planning Differentiated by time (have customers or technology today or in the future) Penetration – increase share Development – diversity Market extensions – growth outside current scope Diversification – new and unrelated businesses Market Penetration Product Development (product improvements, (line extensions) cost reductions) Market Extensions Diversification (new uses, new markets) (new-to-the-company, new-to-the-world) Current New

5. Product Development Process Derived from strategy versus idea- generated Market-pull versus technology-push Stage-gate or phase-review – formal evaluation hurdles along the way to screen poor concepts from further development

6. Product Development Process Typically, multiple phases to the process –Phase 1 – opportunity identification, including formalizing the process and gates –Phase 2 – concept generation, including a pool of candidate concepts –Phase 3 – pre-technical evaluation, including business case of concept –Phase 4 – technical development, including financial and marketing evaluation –Phase 5 – launch to the market –Phase 6 – life cycle management

7. Evaluating the Product Development Process One way is risk assessment –Look at risk, cost, time associated with each product development stage of a concept –Decay curve – effect of narrowing the funnel at each stage of the development process –Good example pages 34-35