1. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-7 Little Remedies How does an extensive product line benefit both consumers and retailers?

2. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-10 FIGURE 10-1 FIGURE 10-1 Classification of consumer goods

3. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-11 Raymond Weil Watch What type of consumer good?

4. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin CLASSIFYING CONSUMER AND BUSINESS GOODS Slide 10-12  Production Goods Production Goods Classification of Business Goods  Support Goods Support Goods Installations Accessory Equipment Supplies Industrial Services

5. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL Slide 10-16  Newness Compared with Existing Products What is a New Product?  Newness in Legal Terms (Regular Distribution?)  Newness from the Company’s Perspective Regular Distribution

6. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-17 Sony’s PlayStation 2 and Microsoft’s Xbox How does the term “new” apply? XboxPS2

7. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-18 MARKETING NEWSNET Blindsided in the Twenty-First Century— The Convergence of Digital Devices

8. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL Slide 10-19 What is a New Product? Continuous Innovation  Newness from the Consumer’s Perspective Dynamically Continuous Innovation Discontinuous Innovation

9. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-20 FIGURE 10-2 FIGURE 10-2 Consumption effects define newness

10. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL Slide 10-21 Why Products Succeed or Fail Insignificant Point of Difference  Marketing Reasons for New-Product Failures

11. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-22 FIGURE 10-B FIGURE 10-B What it takes to launch one commercially successful new product

12. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-23 MARKETING NEWSNET What Separates New-Product Winners and Losers

13. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL Slide 10-25 Why Products Succeed or Fail  Marketing Reasons for New-Product Failures Too Little Market Attractiveness Incomplete Market and Product Definition Before Product Development Starts  Protocol Protocol Poor Execution of the Marketing Mix: Name, Price, Promotion, and Distribution

14. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin NEW PRODUCTS AND WHY THEY SUCCEED OR FAIL Slide 10-26 Why Products Succeed or Fail  Marketing Reasons for New-Product Failures Bad Timing Poor Product Quality or Insensitivity to Customer Needs on Critical Factors No Economic Access to Buyers  A Look at Some Failures

15. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-27 Thirsty Dog! and Thirsty Cat! Why did these products fail?

16. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-28 MARKETING NEWSNET When Less is More— How Reducing the Number of Features Can Open Up Huge Markets

17. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-29 FIGURE 10-3 FIGURE 10-3 Why did these new products fail?

18. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-33 FIGURE 10-4 FIGURE 10-4 Stages in the new-product process

19. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-34 FIGURE 10-C FIGURE 10-C Strategic roles of most successful new products

20. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-36 Volvo’s YCC How are new-product ideas generated?

21. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-39 3M Post-it Flag Highlighter How are new-product ideas screened & evaluated? += 3M Post-it Flag Highlighters 3M Post-it NotesFelt Tip Highlighters

22. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-40 Frito-Lay Natural Snacks How are new-product ideas screened & evaluated?

23. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-45 Mattel’s Barbie Why should laboratory and safety tests be done?

24. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-46 ETHICS AND SOCIAL RESPONSIBILITY ALERT SUVs and Pickups versus Cars— Godzilla Meets a Chimp?

25. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-48 FIGURE 10-5 FIGURE 10-5 Six important U.S. test markets and the “demographics winner”: Wichita Falls, Texas, metropolitan statistical area

26. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-50 FIGURE 10-6 FIGURE 10-6 Marketing information and methods used in the new-product process

27. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-62 3M New-Product Idea Ultrathon Insect Repellent

28. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-64 FIGURE 10-D FIGURE 10-D Five alternative structures for product development projects

29. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-65 FIGURE 10-E FIGURE 10-E Overall performance of five structures for product development projects

30. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-67 FIGURE 10-F FIGURE 10-F A weighted point system Medtronic uses to spot a winning new medical product (part 1)

31. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 10-68 FIGURE 10-G FIGURE 10-G A weighted point system Medtronic uses to spot a winning new medical product (part 2)