1. New Product Strategy Product Management
GLOBAL MARKETING
New Product Strategy
Product Management

2. Understanding the Product
Augmented
product
Generic
product
Core
benefit
Expected
product
Potential
product

3. Product Classifications
Durability & tangibility classification
Nondurable goods
Durable goods
Consumer goods classification
Convenience goods
Shopping goods
Specialty goods
Industrial goods classification
Material and parts
Capital items
Supplies and business services
Distribution classification
Local/regional products
National products
International/global products

4. Product Mix (Product Assortment)
The set of all products and items that a particular marketer offers for sale.
Width—number of different product lines
Length—total number of items in the mix
Depth—how many variants of each product are offered
Consistency—how closely related the product lines are with respect to end use, production requirements, distribution channels, etc.

5. Product Line Management
Product line analysis
Product line length
Line modernization
Line featuring
Line pruning

6. New Product Development
There are thousands of new product launches every year: ≈ 25,000
Expensive to launch new product
High failure rate: only about 56% of new products will still be around five years after introduction
Recent studies put the failure rate of US consumer products at 95% and European consumer products at 90%
Long-term survival of firm is tied into new product development

7. What is an innovation?
An idea, process, or invention that is new or different.
Continuous
Innovation
Dynamically
Continuous
Innovation
Discontinuous
Innovation
Product-Oriented Definition of Innovation

8. Types of New Products New-to-the-world products New product lines
Additions to existing product lines
Improvements and revisions of existing products
Re-positionings
Cost reductions

9. New Product Development Process
Lengthy
Multidisciplinary
Market-oriented

10. Stages in Development Process
Idea generation
Idea screening
Concept development
Concept testing
Marketing strategy development
Business analysis

11. Managing New Products Product development Quality function deployment
Preferences
Cost
Laws & regulations
Compatibility
Labeling & instructions
Alpha testing
Beta testing
Market testing
Estimate trial, first repeat purchase, adoption, and purchase frequency
Commercialization
Product launch

12. Country-of-origin issues
Is the country image favorable or unfavorable to potential customers?