1. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Gilbert A. Churchill, Jr. J. Paul Peter Chapter 10 Developing New Products Marketing

2. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Types of New Products Slide 10-1 Figure 10.1 New-to-the-World Products New Category Entries Additions to the Product Line Product Improvement Repositionings New!

3. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 The New Product Development Process Slide 10-2 Figure 10.2 Idea Generation Idea Screening Business Analysis Product Development Test Marketing Commercialization

4. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Technique Delphi Method Benefit Analysis Description A panel of experts fills out a questionnaire; a researcher tabulates the results and sends them to panel members. Repeat the process until the panel reaches a consensus or an impasse. Use Analysis Relative Brand Profile Unique properties Techniques for Generating Ideas Slide 10-3a Table 10.1 List all the benefits customers receive from the product under study. Think of benefits that are currently missing from the list. Ask customers how they use the product under study. List the various uses. Ask target markets whether the brand name makes sense for other product categories under consideration. A stretch of the brand name that makes sense to potential buyers can be the basis for a new product. List all the properties held in common by a product or material currently on the market. Look for unique properties of the organization’s product.

5. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Technique Achilles heel Free Association Description List the weaknesses of a product or product line (for the organization and its competitors). Prune the list to the one or two weaknesses most likely to inspire a response from competitors. Identify product concepts that could result from correcting these weaknesses. Study of other people’s failures Slide 10-3b Table 10.1 Study products that have failed. Look for ways to solve the problems that led to failure. Stereotype activity Write down one aspect of the product situation–a product attribute, use or user. Let the mind roam and jot down every idea that surfaces. Repeat the process for other aspects of the product situation. Ask, “How would ________do it?” –referring to how a member of some group or a particular person would use the product. Example: What type of bicycle would a senator ride? Can also ask what the stereotype would not do. Techniques for Generating Ideas

6. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 A standard test market is the practice of offering a new product through normal distribution channels in a limited area.A standard test market is the practice of offering a new product through normal distribution channels in a limited area. A controlled test market is the practice of offering a new product through a set of retailers who have been paid to set aside shelf space for the product in a desirable area of the store.A controlled test market is the practice of offering a new product through a set of retailers who have been paid to set aside shelf space for the product in a desirable area of the store. A simulated test market is an experiment in which a sample of consumers has an opportunity to select products.A simulated test market is an experiment in which a sample of consumers has an opportunity to select products. Slide 10-4 Types of Test Markets

7. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 The Eight Dimensions of Quality Slide 10-5 Performance Features Overall Evaluation Conformance Durability Reliability Serviceability Aesthetics Chrysler DuraCell Sears Die Hard Singapore Airlines Walt Disney World Perceived Quality Ralph Lauren Midas

8. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Universal Product Codes Slide 10-6 0 12345 67890 5 Identify Manufacturer Assigned by the Uniform Code Council Identify Product Assigned by the Manufacturer Check Digit

9. Organizational Forms for New Product Development Slide 10-7 Figure 10.5 Functional With or Without Committee Functional Matrix Balanced Matrix Project Matrix Venture Inside/ Outside Options Almost NoneAlmost All Source: Adapted from C. Merle Crawford, New Products Management, 4th ed. (Burr Ridge, Ill.:Irwin, 1994), p. 411 Percentage of Employee Time Devoted to the New Product

10. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Use cross-functional teams Applying technology Delegate authority Build on specialized knowledge Shortening Development Time Slide 10-8