1. MARKETING MANAGEMENT 12th edition20
Introducing New Market Offerings
Kotler Keller

2. Chapter Questions
What challenges does a company face in developing new products?
What organizational structures are used to manage new-product development?
What are the main stages in developing new products?
What is the best way to set up the new-product development process?
What factors affect the rate of diffusion and consumer adoption of newly launched products?

3. 3M Emphasizes New Product Development

4. Categories of New Products
New-to-the-world
New product lines
Additions
Improvements
Repositionings
Cost reductions

5. Innovations

6. Factors That Limit New Product Development
Shortage of ideas
Fragmented markets
Social and governmental constraints
Cost of development
Capital shortages
Faster required development time
Shorter product life cycles

7. Table 20.1 Finding One Successful New Product

8. Venture Team Cross-functional group charged with
developing a specific product or business;
intrapreneurs are relieved of other duties
and provided a budget and time frame.

9. Criteria for Staffing Venture Teams
Desired team leadership style
Desired level of leader expertise
Team member skills and expertise
Level of interest in concept
Potential for personal reward
Diversity of team members

10. Figure 20.1 The New Product-Development Decision Process

11. Idea Generation: Creativity Techniques
Attribute listing
Forced relationships
Morphological analysis
Reverse assumption analysis
New contexts
Mind mapping

12. Lateral Mapping Gas stations + food Cafeteria + Internet
Cereal + snacking
Candy + toy
Audio + portable

13. Variations on Failure Absolute product failure Partial product failure
Relative product failure

14. Table 20.2 Product-Idea Rating Device

15. Concepts in Concept Development
Product idea
Product concept
Category concept
Brand concept
Concept testing

16. Concept Testing Communicability and believability Need level Gap level
Perceived value
Purchase intention
User targets, purchase occasions, purchasing frequency

17. Figure 20.5 Utility Functions Based on Conjoint Analysis

18. Airlines Use Conjoint Analysis

19. Marketing Strategy Target market’s size, structure, and behavior
Planned price, distribution, and promotion for Year 1
Long-run sales and profit goals and marketing-mix strategy over time

20. Figure 20.6 PLS Sales for Three Product Types

21. Table 20.3 Projected 5-year Cash-Flow Statement (in thousands $)

22. Product Development Quality function deployment (QFD)
Customer attributes
Engineering attributes

23. Prototype Testing Alpha testing Beta testing Rank-order method
Paired-comparison method
Monadic-rating method
Market testing

24. Consumer Goods Market Testing
Sales-Wave Research
Simulated Test Marketing
Controlled Test Marketing
Test Markets

25. Test Market Decisions How many test cities? Which cities?
Length of test?
What information?
What action to take?

26. Timing of Market Entry
First entry
Parallel entry
Late entry

27. Criteria for Choosing Rollout Markets
Market potential
Company’s local reputation
Cost of filling pipeline
Cost of communication media

28. Consumer-Adoption Process
Adoption is an individual’s decision
to become a regular user
of a product.

29. Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption

30. Figure 20.7 Adopter Categorization

31. Characteristics of an Innovation
Relative advantage
Compatibility
Complexity
Divisibility
Communicability

32. Marketing Debate Who should you target with new products?
Take a position:
New products should always target new
adopters.
2. New products should target the broadest
market possible.

33. Marketing Discussion Think about the last new product
you bought. How do you think
its success will be affected by
the five characteristics of an
innovation?