1. Objectives Challenges in New Product Development (NPD)
Organizational Structure & NPD
Stages & Management of NPD
Diffusion & Adoption of New Products

2. Why New Products Fail “Over Championing” Overestimated Demand
Poor Design
Poor Marketing Execution
High Development Costs
Strong Competitive Reaction

3. Challenges in NPD Idea Shortage Fragmented Markets
Social & Governmental Constraints
Cost
Capital Shortage
Need for Speed
Shorter Product Life Cycles

4. Probability of Success
commercialization
given technical
completion X
Probability of
economic
success given
commercialization X
Overall
probability
of success =
Probability
of technical
completion

5. Concept Development & Testing
1. Develop Product Ideas into
Alternative Product Concepts
Concept Development & Testing
2. Concept Testing - Test the Product
Concepts with Groups of Target Customers
3. Choose the Best One

6. Consumer-Goods Market Testing
Sales-
Wave
Research
Test offering trail to
a sample of
consumers in
successive
periods.
Simulated
Test Market
Test in a simulated
shopping environment
to a sample of
consumers.
Standard
Full marketing campaign
in a small number of
representative cities.
Controlled
A few stores that have
agreed to carry new
products for a fee.

7. Commercialization
Whom
Product
Price
Place
Promotion
When
Where

8. Characteristics of the Innovation Rate of Adoption
Relative advantage
Compatibility
Complexity
Divisibility
Communicability