1. B to B Marketing
Mastering the Life Cycle

2. Mastering the Life Cycle
The Adoption Pattern
NPD and Lead Time
Break Even and Pay Back
Technology Push and Market Pull 2

3. The Life Cycle 3

4. What happened to these Products ?4 4

5. Source : Everett M. Rogers
The Product Life Cycle
Sales
Emergence Growth Maturity Decline
Time 5
Source : Everett M. Rogers

6. Source : Everett M. Rogers
What’s Next ?
Sales
Emergence Growth Maturity Decline
Time 6
Source : Everett M. Rogers

7. Life Cycle of Intel Micro Processors
Pentium
Pro
Pentium
486
386
286 7
Source : Le Nouvel Economiste 1026

8. The Adoption Pattern 8

9. The Pattern of Buying Behaviour
Early Early Late
Adopters Majority Majority Laggards
13.5% % % %
Innovators 2.5%
Time 9
Source : Everett Rogers

10. 10 10

11. The Cumulative Buying Pattern : a S Curve
100% 84 50 16
Early Early Late
Adopters Majority Majority Laggards
13.5% % % %
Innovators 2.5%
Technology Visionaries Pragmatists Conservatives Skeptics
enthusiasts
Time 11
Source : Geoffrey Moore

12. Profits after Revenues
Loss
Revenues
Profit
R&D Emergence Growth Maturity Decline
Source : Roger Palmer

13. NPD and Lead Time 13

14. R&D Emergence Growth Maturity Decline
The Lead Time
Profit
Revenues
Profit
R&D Emergence Growth Maturity Decline
Time
Go/No Go
Lead
Loss
Source : Roger Palmer

15. Steps in R&D Idea Building value Capturing Value
Fuzzy Front End New Product Development Commercialization
Idea Concept Product
Idea
Chaotic Unpredictable Goal oriented High degree of certainty Results oriented
Building value Capturing Value
Lead Time 15

16. « EADS delays Airbus A350 launch »
Reading
« EADS delays Airbus A350 launch »
The Financial Times as of July 27, 2012
By Andrew Parker

17. Sales, Break Even and Pay back

18. R&D Emergence Growth Maturity Decline
Profit after Revenues
Profit
Revenues
Profit
R&D Emergence Growth Maturity Decline
Time
Loss
Source : Roger Palmer

19. How much Time to Break Even ?
Revenues
Profit
Revenues
Break Even
Profit
R&D Emergence Growth Maturity Decline
Time
Lead
Pay Back
Pay Off
Loss
Source : Roger Palmer

20. Training
Idea case

21. Lead Time by Industry 18 months 26 months 10 years Airbus A400M
Lead Time Life Cycle R&D Spend
Agro Food years €100k
Automobile years €1 to 2bn
Aeronautics years € 10bn
Pharmaceuticals years+ 10 €1bn
18 months
26 months
10 years Airbus A400M
12 years Compound

22. Industries Spend R&D R&D Expenses in % of Sales 2006
Source : Les Echos

23. 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

24. Leveraging the Key Factors of Success
Sales
Experience Curve
A&P
Milk
Consolidate
Divest
R&D
Agile
Emergence Growth Maturity Decline
Time
Source : Everett M. Rogers

25. Technology Push and Market Pull

26. 2 Business Models Market Pull : Demand triggers the market
Active role of Customer
Process and methods
Technology Push : the offer creates the market
Visionary guru
Launches

27. Market Pull The Customer Adopted generates a new idea
by other companies
after adjustment
Company develops
a taylor made response 27 27

28. innovations in products
Technology Push
Search of leveraging
innovations in products
Market research, test
and introduction
R&D to submit
innovations 28 28

29. Technology Push or Market Pull ?

30. The Patent Process

31. 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. « Summit gives birth to common EU patent »
Reading
« Summit gives birth to common EU patent »
The Financial Times as of June 29, 2012
by Joshua Chaffin

33. TM above Patents
Trademark : Brand

34. Ranking

35. Conclusions
Life cycle is made of 4 stages : emergence, growth, maturity and decline
Lead Time, Break Even and Pay back are key elements to assess a life cycle
R&D and patents are mandatory to secure life cycle
2 models in today’s industries
Technology Push
Market Pull