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1 B to B Marketing Mastering the Life Cycle
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2 The Life Cycle The Adoption Pattern NPD and Lead Time Break Even and Pay Back Technology Push and Market Pull 2
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3 The Life Cycle 3
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444 What happened to these Products ?
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55 The Product Life Cycle Time Source : Everett M. Rogers Emergence Growth Maturity Decline Sales
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66 What’s Next ? Time Source : Everett M. Rogers Emergence Growth Maturity Decline Sales
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77 Life Cycle of Intel Micro Processors 1985 86 87 88 89 90 91 92 93 94 95 96 97 98 99 286 386 486 Pentium Pro Source : Le Nouvel Economiste 1026
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88 Ever Faster Cycles Source : Arcep Mars 2008 Nb of years to reach full deployment
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9 The Adoption Pattern 9
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10 The Pattern of Buying Behaviour 13.5% 34% 34% 16% Time Source : Everett Rogers Innovators 2.5% Early Early Late Adopters Majority Majority Laggards
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12 The Cumulative Buying Pattern : a S Curve 13.5% 34% 34% 16% Time Source : Geoffrey Moore Innovators 2.5% 100% 84 50 16 Early Early Late Adopters Majority Majority Laggards Technology Visionaries Pragmatists Conservatives Skeptics enthusiasts
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13 Profits after Revenues Source : Roger Palmer Profit Loss Revenues Profit R&D Emergence Growth Maturity Decline
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14 NPD and Lead Time 14
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The Lead Time R&D Emergence Growth Maturity DeclineTime Source : Roger Palmer Profit Revenues Profit Loss Go/No Go Lead
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16 Steps in R&D Idea Fuzzy Front End New Product Development Commercialization IdeaConcept Product Lead Time Chaotic Unpredictable Goal oriented High degree of certainty Results oriented Buiding value Capturing Value
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Reading « EADS delays Airbus A350 launch » –The Financial Times as of July 27, 2012 –By Andrew Parker
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Sales, Break Even and Pay back 18
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Profit after Revenues R&D Emergence Growth Maturity DeclineTime Source : Roger Palmer Profit Revenues Profit Loss
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How much Time to Break Even ? R&D Emergence Growth Maturity DeclineTime Source : Roger Palmer Profit Revenues Profit Loss Pay BackPay Off Break Even Lead Revenues
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Training Idea case 21
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22 Lead Time by Industry 18 months 26 months 10 years Airbus A400M Agro Food 15 years€100k Automobile 5 years €1 to 2bn Aeronautics 30 years€ 10bn Pharmaceuticals 20 years+ 10€1bn Lead Time Life Cycle R&D Spend 12 years Compound
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23 Industries Spend R&D Source : Les Echos R&D Expenses in % of Sales 2006
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24 Pay Back and ROI Pay Back is an easy way to compare projects Pay Back is assessed against a 3 to 5 years time period ROI = Profit/ Sales * Sales/Investment = Profit/ Investment ROI is assessed against industry benchmark
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Leveraging the Key Factors of Success Time Source : Everett M. Rogers Sales R&D Agile A&P Milk Consolidate Divest Experience Curve Emergence Growth Maturity Decline
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Technology Push and Market Pull 26
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2 Business Models 27 Market Pull : Demand triggers the market –Active role of Customer –Process and methods Technology Push : the offer creates the market –Visionary guru –Launches
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28 Market Pull The Customer generates a new idea Company develops a taylor made response Adopted by other companies after adjustment
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29 Technology Push R&D to submit innovations Search of leveraging innovations in products Market research, test and introduction
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30 Technology Push or Market Pull ?
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The Patent Process 31
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The European Patent A uniform application Procedure Allows to file for 40 European countries The patent may be filed either in French, English or German Cost is c €18 000 32
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Reading « Summit gives birth to common EU patent » –The Financial Times as of June 29, 2012 – by Joshua Chaffin
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TM above Patents Trademark : Brand 34
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Ranking 35
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36 Conclusions R&D is mandatory in most industrial markets. Life cycle planning delivers the right product in due time Strategic decisions have to be made through the life cycle to maximize profit 2 models in today’s industries –Technology Push –Market Pull
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