Microsoft PowerPoint - 20-Introducing New Market Offerings [Compatibility Mode]

Introducing New Introducing New Market Offerings.

Chapter Questions • What challenges does a company face in developing new products? • What organizational structures are used to manage new-product development? 20-2 manage new-product development? • What are the main stages in developing new products? • What is the best way to set up the new-product development process? • What factors affect the rate of diffusion and consumer adoption of newly launched products?.

Categories of New Products New-to-the-world New product lines Additions 20-3 Cost reductions Additions Improvements Repositionings.

Factors That Limit New Product Development • Shortage of ideas • Fragmented markets • Social and governmental constraints • Cost of development 20-4 • Cost of development • Capital shortages • Faster required development time • Shorter product life cycles.

Finding One Successful New Product 20-5.

Venture Team Cross-functional group charged with 20-6 Cross-functional group charged with developing a specific product or business; intrapreneurs are relieved of other duties and provided a budget and time frame..

Criteria for Staffing Venture Teams • Desired team leadership style • Desired level of leader expertise • Team member skills and 20-7 • Team member skills and expertise • Level of interest in concept • Potential for personal reward • Diversity of team members.

The New Product-Development Decision Process 20-8.

Idea Generation: Creativity Techniques • Attribute listing • Forced relationships • Morphological analysis 20-9 analysis • Reverse assumption analysis • New contexts • Mind mapping.

Lateral Mapping • Gas stations + food • Cafeteria + Internet 20-10 • Cereal + snacking • Candy + toy • Audio + portable.

Variations on Failure • Absolute product failure • Partial product failure • Relative product failure 20-11.

Product-Idea Rating Device 20-12.

Concepts in Concept Development • Product idea • Product concept • Category concept • Brand concept 20-13 • Brand concept • Concept testing.

Concept Testing • Communicability and believability • Need level • Gap level • Perceived value 20-14 • Perceived value • Purchase intention • User targets, purchase occasions, purchasing frequency.

Marketing Strategy • Target market’s size, structure, and behavior • Planned price, distribution, and promotion for Year 1 20-15 for Year 1 • Long-run sales and profit goals and marketing-mix strategy over time.

Projected 5-year Cash-Flow Statement (in thousands $) 20-16.

Product Development • Quality function deployment (QFD) – Customer attributes – Engineering attributes 20-17 attributes.

Prototype Testing • Alpha testing • Beta testing –Rank-order method –Paired-comparison method 20-18 –Paired-comparison method –Monadic-rating method • Market testing.

Consumer Goods Market Testing • Sales-Wave Research • Simulated Test Marketing 20-19 • Controlled Test Marketing • Test Markets.

Test Market Decisions • How many test cities? • Which cities? • Length of test? • What information? 20-20 • What information? • What action to take?.

Timing of Market Entry • First entry • Parallel entry • Late entry 20-21.

Criteria for Choosing Rollout Markets • Market potential • Company’s local reputation • Cost of filling pipeline • Cost of communication media 20-22 • Cost of communication media.

Consumer-Adoption Process Adoption is an individual’s decision 20-23 to become a regular user of a product..

Stages in the Adoption Process Awareness Interest 20-24 Evaluation Trial Adoption.