1. Launching a New Product Dr. Carol Gwin Baylor University July 14, 2005

3. Slide 10-43 Handspring Treo Brand Video What is involved developing a new product?

4. Slide 10-31 What Separates New-Product Winners From Losers?

5. Slide 10-42 Stages in the New-Product Process

6. SETTING STRATEGIC DIRECTIONS Where are we now? –Internal (your company) Core Competencies Other strengths Weaknesses –External (outside of the company) Trends changing customer needs and wants (sociocultural, demographics, technology) Industry and competitive strengths and weaknesses Technological developments The economy Political, legal and regulatory restrictions and changes Where are the greatest opportunities?

7. 1. Create a Sustainable Competitive Advantage Different from competition in a way that is meaningful to the customer. –Product/service, image, price Difficult to copy (sustainable). Profitable.

8. Potential Sources for Product/Service Differentiation  Patents  Brand equity  Exclusive supplier agreements  Exclusive distribution agreements  Product reliability & quality  Unique processes

9.  Obtain lower prices from suppliers.  Create efficient operations.  Control overhead costs.  Move down the experience curve.  Achieve economies of scale.  Obtain lower prices from suppliers.  Create efficient operations.  Control overhead costs.  Move down the experience curve.  Achieve economies of scale. Potential Sources for Cost Competitive Advantage

10. Identifying the Target Market Who is most likely to buy your product? Why is it important to precisely define the target market? – –Efficiencies Marketing - Focused on specific target. Operations – Focused on specific features/attributes. – –Price premium Greater value to customer since deliver to specific target market’s needs.

11. Customer Value CostsBenefits

12. Consumer Segmentation Variables FIGURE 7.3

13. Slide 2-43 Elements of the Marketing Mix

14. Slide 10-42 Information is Key to Developing a Successful New Product

15. Slide 18-10 Growth of the Internet and E-Commerce

16. Slide 18-23 Online Consumer Sales by Category: 2001 and 2005

17. Slide 18-25 Why Consumers Shop and Buy Online

18. Why Do Some Consumers Not Shop Online?

19. Slide 18-18 Creating the Customer Experience Online Country Selector Amazon.com: Online shopping for electronics, apparel, music, books, DVDs & more

20. Online Marketing Tools Search engines Online ads Viral marketing Affiliation programs Community/relationships Interactive sites –Personalization, customization, games Personalized e-mail

21. What is the biggest barrier to creating a successful online business? Profitability –Attracting consumers to your web site. –Getting consumers to buy (or advertisers). –The infrastructure for product availability, packing and shipping. –Keeping competitors from copying real- time. –Price sensitivity.