1. Chapter 10 Developing and Managing Products

2. Categories of New Products
New-To-The-World
New Product Lines
Product Line Additions
Improvements/Revisions
Repositioned Products
Lower-Priced Products
Six
Categories of
New
Products

3. Successful New-Product Development Process
New Product Success Factors
Long-Term Commitment
New Product Strategy
Capitalize on Experience
Establish an Environment

4. New-Product Development Process
New-Product Strategy
Idea Generation
Idea Screening
Business Analysis
Development
Test Marketing
Commercialization
New Product

5. SoftBook IBM Electronic Newspaper Rocket e-book BMW R 1200 C
Design Awards for 1999
Polaroid PopShot iMac Voice-Egg Nissan SUT (Sports Utility Truck)

6. usually before any prototype has
Concept Test
A test to evaluate a
new-product idea,
usually before any prototype has
been created.

7. Choosing a Test Market Similar to planned distribution
Relative isolation and free of influences
Advertising availability; multiple media
Diversified cross section
No atypical purchase habits
Representative population/income
Not overly used or easily “jammed”
Year-round sales stability
Available research/audit and retailers

8. Why New Products Fail No discernible benefits
Poor match between features and customer desires
Overestimation of market size
Incorrect positioning
Price too high or too low
Inadequate distribution
Poor promotion
Inferior product

9. Where is E-Comm Going to Grow?
Degree of Consideration
Low High
Magazines
Recorded Music
Flowers
Books
Business Supplies
Abrasives
Financial Services
Travel
Software
PCs
Industrial Machinery
Efficiency of the On-Line Sales Channel
Low High
Where is E-Comm Going to Grow?
Paper Goods
Hand Tools
Consumer Electronics
Food, Drink
Medicine
Clothes
House Paint
Home Appliances
Furniture
Source: Forrester Research
Banners Only
Micro-Site
Destination Site

10. Success Factors Factors in Successful New Products
Match between product and market needs
Unique but superior product
Benefit to large number of people
Factors in Successful New Products

11. Categories of Adopters
Laggards
Late Majority
Early Majority
Early Adopters
Innovators
Categories of Adopters in the Diffusion Process

12. Product Life Cycle Time Dollars Product Category Profits
Category Sales
Introductory
Stage
Growth
Maturity
Decline

13. Product Characteristics and the Rate of Adoption
Trialability
Observability
Relative Advantage
Compatibility
Complexity
Product Characteristics Predict Rate of Adoption

14. Marketing Strategies for PLC
INTRODUCTION
GROWTH
MATURITY
DECLINE
Product
Strategy
Distribution
Promotion
Pricing
Limited models
Frequent
changes
More models
Frequent changes.
Large number of models.
Eliminate unprofitable models
Limited Wholesale/ retail distributors
Expanded dealers. Long-
term relations
Extensive.
Margins drop.
Shelf space
Phase out unprofitable outlets
Awareness.
Stimulate
demand.Sampling
Aggressive ads.
Stimulate demand
Advertise. Promote heavily
Phase out promotion
Higher/recoup development costs
Fall as result of
competition & efficient produc-
tion.
Prices fall (usually).
Prices
stabilize at low level.

15. Diffusion Process and PLC Curve
Innovators
Early adopters
Early majority
Late majority
Laggards
Product
life cycle
curve
Diffusion
Introduction
Growth
Maturity
Decline
Sales