1. Developing New Products

2. Invention versus Innovation
Invention is the discovery of new ideas and methods
Innovation occurs when an invention is commercialised by bringing it to market

3. What is a new product? New Products Additions to Product existing
New-to-the-world
products
New
product
lines
New Products
Product
replacements
Additions to
existing

4. This new product replacement from Dyson is an improvement on an
existing product.

5. Creating and nurturing an innovative culture
Reward success heavily
Clear messages about the role and importance of innovation
Back words with resources
Resist automatic nay-saying
Give time
Off or ‘turn a
blind eye’ to people working on pet
projects
Tolerate failure
Be accessible
Innovative culture

6. Organising effectively for new product development
Project teams
Product and brand managers
New product departments and committees
Importance of teamwork

7. Organising effectively for new product development
Role of marketing directors
Encourage teamwork
Improve the provision of marketing information to R&D
Take R&D people out of lab
Develop informal relationships with R&D
Learn about technology
Formalise the product development process
Role of Senior management
Make organisational design changes
Show a personal interest in new product development
Provide strategic direction
Encourage teamwork
Increase resources
Understand marketing's importance

8. The eight-stage new product development process
New product strategy
Idea generation
Screening
Concept testing
Business analysis
Product development
Market testing
Commercialisation
New products

9. Nike continues to be at the forefront of the specialist shoe market.

10. Sources of new product ideas
Internal
scientists
engineers
marketers
sales people
designers
Brainstorming may be used.
External
consumers/customers
competitors
distributors
Marketing research may be used.

11. Concept testing Techniques. Group discussions.
Quantitative research using action standards.
The scenario method.

12. Becks New concepts like the introduction of Beck’s
alcohol-free larger will be
tested before development
and launch.

13. Product development Key issues. Multi-disciplinary project teams.
Target costing.
Time to market.
Marketing’s role.
Product testing.

14. Market testing
Techniques.
Simulated market test.
Test marketing.

15. Diffusion of an innovation
34%
16%
13.5%
2.5%
Innovators
Early adopters
Early majority
Late majority
Laggards
Percentage adopting
Time

16. How the characteristics of a product affect its rate of diffusion

17. Product replacement strategies
Inconspicuous technological substitution
Relaunch
Conspicuous technological substitution
No change
Facelift
Re-merchandising
Intangible positioning
Tangible positioning
Neo-innovation
Modified
Technology change
Re-mix
New/market
segment
Marketing
Product

18. Core Reading
Core reading to support this topic can be found in Chapter 11 of your recommended text