1. 8-1

2. 8-2 Product Planning and Development Chapter 8 McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 8-3 Chapter Goals McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Meaning of product New product Classification of consumer and business products Importance of product innovation Stages in new-product development process Criteria for adding a product to a company’s lines Adoption and diffusion processes for new products Organization structures for product planning and development

4. 8-4 Product Set of tangible and intangible attributes Set of tangible and intangible attributes May be a good, service, place, person, or idea May be a good, service, place, person, or idea Want-satisfaction in the form of benefits Want-satisfaction in the form of benefits

5. 8-5 Product More Than a Set of Attributes

6. 8-6 Classification of Products Consumer Intended for personal consumption or household use Business Intended for resale, producing other products, providing services in organization

7. 8-7 Categories of Consumer Goods

8. 8-8 Categories of Business Goods

9. 8-9 Importance of Product Innovation Requirement for growth “Innovate or Die” High failure rates No differentiation, Does not deliver on promise, Poor value

10. 8-10 What is a “New” Product? ReallyinnovativeReallyinnovative SignificantlydifferentSignificantlydifferent ImitativeImitative

11. 8-11 Stages in the Development Process

12. 8-12 Producer’s Criteria for New Products Producer’s Criteria for New Products AdequatemarketdemandAdequatemarketdemand Satisfy key financialcriteria financialcriteria CompatiblewithenvironmentalstandardsCompatiblewithenvironmentalstandards Fitcompany’smarketingstructureFitcompany’smarketingstructure

13. 8-13 Middleman’s Criteria for New Products GoodrelationshipwithproducerGoodrelationshipwithproducer Compatibledistributionpolicies,practicesCompatibledistributionpolicies,practices Satisfy key financialcriteria financialcriteria

14. 8-14 Stages in the Adoption Process AWARENESSINTERESTEVALUATIONTRIALADOPTIONCONFIRMATION

15. 8-15 Early and Late Adopters Early and Late Adopters

16. 8-16 Adoption Rate

17. 8-17 Organizing for Product Innovation SHIFTING ARRANGEMENTS TYPES OF ORGANIZATIONS Product-planning Committee New-product department or team Brand manager Product-planning Committee New-product department or team Brand manager

18. 8-18 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Product Consumer products Business products Convenience good Shopping good Specialty good Unsought good Raw materials Fabricating materials Fabricating parts Installations Accessory equipment Operating supplies New products New-product strategy New-product development process Business analysis Market tests Adoption process Diffusion Stages in the adoption process Innovation adopter categories

19. 8-19 Key Terms and Concepts McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Innovators Early adopters Change agent Early majority Late majority Laggards Nonadopters Adoption rate Product-planning committee New-product department or team Brand manager