1. Introducing New Market Offerings20
Introducing New Market Offerings
Marketing Management, 13th ed

2. Chapter Questions
What challenges does a company face in developing new products and services?
What organizational structures and processes do managers use to manage new-product development?
What are the main stages in developing new products and services?
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3. Chapter Questions (cont.)
What is the best way to manage the new-product development process?
What factors affect the rate of diffusion and consumer adoption of newly launched products and services?
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4. Johnson & Johnson Emphasizes New Product Development
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5. Categories of New Products
New-to-the-world
New product lines
Additions
Improvements
Repositionings
Cost reductions
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6. The World’s Most Innovative Companies
Apple
Google
Toyota
General Electric
Microsoft
Procter & Gamble 3M
Walt Disney
IBM
Sony
Wal-Mart
Honda
Starbucks
Target
BMW
Samsung
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7. Seven Notions of Innovation
See the future through the eyes of your customer
Intellectual property and brand power are key assets
Use digital technology to create tools for customers
Build a championship team
Innovation is a state of mind
Speed is critical, so push your organization
Partner up if you’re not the best
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8. 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
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9. Table 20.4 Finding One Successful New Product
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10. What is a Venture Team?
A venture team is a cross-functional group charged with developing a specific product or business; intrapreneurs are relieved of other duties and provided a budget and time frame.
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11. 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
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12. Figure 20.2 The New Product Development Decision Process
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13. Ways to Find Great New Ideas
Run informal sessions with customers
Allow time off for technical people to putter on pet projects
Make customer brainstorming a part of plant tours
Survey your customers
Undertake “fly on the wall” research to customers
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14. More Ways to Find Great Ideas
Use iterative rounds with customers
Set up a keyword search to scan trade publications
Treat trade shows as intelligence missions
Have employees visit supplier labs
Set up an idea vault
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15. Drawing Ideas from Customers
Observe customers using product
Ask customers about problems with products
Ask customers about their dream products
Use a customer advisory board or a brand community of enthusiasts to discuss product
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16. Idea Generation: Creativity Techniques
Attribute listing
Forced relationships
Morphological analysis
Reverse assumption analysis
New contexts
Mind mapping
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17. Lateral Mapping Gas stations + food Cafeteria + Internet
Cereal + snacking
Candy + toy
Audio + portable
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18. Variations on Failure Absolute product failure Partial product failure
Relative product failure
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19. Table 20.5 Product-Idea Rating Device
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20. Concepts in Concept Development
Product idea
Product concept
Category concept
Brand concept
Concept testing
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21. Concept Testing Communicability and believability Need level Gap level
Perceived value
Purchase intention
User targets, purchase occasions, purchasing frequency
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22. Figure 20.6 Utility Functions Based on Conjoint Analysis
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23. Marketing Strategy Target market’s size, structure, and behavior
Planned price, distribution, and promotion for year one
Long-run sales and profit goals and marketing-mix strategy over time
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24. Figure 20.7 Product Life Cycle Sales for Three Product Types
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25. Table 20.6 Projected Five-Year Cash-Flow Statement (in thousands $)
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26. Product Development Quality function deployment (QFD)
Customer attributes
Engineering attributes
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27. Prototype Testing Alpha testing Beta testing Market testing
Rank-order method
Paired-comparison method
Monadic-rating method
Market testing
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28. Consumer Goods Market Testing
Sales-Wave Research
Simulated Test Marketing
Controlled Test Marketing
Test Markets
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29. Test Market Decisions How many test cities? Which cities?
Length of test?
What information to collect?
What action to take?
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30. Timing of Market Entry First entry Parallel entry Late entry
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31. Criteria for Choosing Rollout Markets
Market potential
Company’s local reputation
Cost of filling pipeline
Cost of communication media
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32. What is Adoption?
Adoption is an individual’s decision to become a regular user of a product.
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33. Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
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34. Figure 20.6 Adopter Categorization
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35. Characteristics of an Innovation
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
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36. Marketing Debate Who should you target with new products?
Take a position:
Consumer research is critical to new-product
development. or
2. Consumer research may not be all that
helpful in new-product development.
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37. 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?
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