1. New Product Strategy Why do new products fail?
Inability of the company to match up its offerings to the needs of the customers
Common Misconceptions about NPD Process (Marketing Highlight 7-1, p. 106)

2. Categories of New Product
1. New-to-the-world product
Product that are inventions; products that change consumption behavior
2. New category entries
Products that take a firm into a category new to it. Products are not new to the world

3. Categories of New Product
3. Additions to product lines (product line extension)
Products that are line extensions to firm’s current markets
4. Product improvements
Improved performance; greater perceived value

4. Categories of New Product
5. Repositionings
Products retargeted for a new use or application

5. Applications: Ensuring Success
Factors associated with new product success (p. 107)
1. Product superiority/quality
2. Overall company/project fit
3. etc.

6. Applications: Ensuring Success
Product superiority/quality – The competitive advantage the product has by virtue of features, benefits, quality, uniqueness, and so on
Make the use easier: ask customers why they don’t use the product as much
Packages that can be placed directly in a microwave

7. Applications: Ensuring Success
Overall company/project fit – the product’s synergy with the company-marketing, managerial, business fit
New category entries: find commonality in distribution, marketing, or brand name recognition.
Family branding:

8. Challenge in Developing New Products
Need to shorten products “time to market”
Reduce time between idea generation and product availability
Reduce market risk and internal risk
A short “time to market” can create a competitive advantage

9. Challenge in Developing New Products
Research – need for timely and accurate information: tracking competitors and customers; tracking marketing environment
Is new product development consistent with organizational mission and objectives?

10. Challenge in Developing New Products
Will customers benefit?
Are there manufacturing, marketing, or distribution cost efficiencies with the new product?

11. Challenge in Developing New Products
Does the firm have the needed competencies and resources in R&D, manufacturing, and marketing to successfully develop product?
Adding wood stains to a line of paints: includes totally new manufacturing effort, raw materials technology, or marketing effort.