1. 20 Introducing New Market Offerings 1

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-2 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

3. What is a Venture Team?  A venture team is a cross-functional group charged with developing a specific product or business. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-3

4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-4 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

5. Figure 20.1 New-Product Development Decision Process Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-5

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-6 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

7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-7 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

8. Consumer Goods Market Testing  Sales-Wave Research  Simulated Test Marketing  Controlled Test Marketing  Test Markets Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-8

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-9 Test Market Decisions  How many test cities?  Which cities?  Length of test?  What information to collect?  What action to take?

10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-10 What is Adoption? Adoption is an individual’s decision to become a regular user of a product.

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-11 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption

12. Figure 20.7 Adopter Categorization on the Basis of Relative time of Adoption Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-12