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1、12-1,Chapter 12 Developing New Market Offerings by,PowerPoint by Milton M. Pressley University of New Orleans,12-2,Who should ultimately design the product? The customer, of course.,Kotler on Marketing,12-3,Chapter Objectives,In this chapter, we focus on the following questions: What challenges does
2、 a company face in developing new products? What organizational structures are used to manage new-product development? What are the main stages in developing new products, and how can they be managed better? What factors affect the rate of diffusion and consumer adoption of newly launched products?,
3、12-4,Developing New Market Offerings,Six categories of new products New-to-the-world products New product lines Additions to existing product lines Improvements and revisions of existing products Repositioning Cost reductions,12-5,Challenges in New-Product Development,Incremental innovation Disrupti
4、ve technologies Why do new products fail? A high-level executive pushes a favorite idea through in spite of negative research findings. The idea is good, but the market size is overestimated. The product is not well designed.,12-6,Challenges in New-Product Development,The product is incorrectly posi
5、tioned in the market, not advertised effectively, or overpriced. The product fails to gain sufficient distribution coverage or support. Development costs are higher than expected. Competitors fight back harder than expected.,12-7,Challenges in New-Product Development,Factors that tend to hinder new-
6、product development Shortage of important ideas in certain areas Fragmented markets Social and governmental constraints Cost of development Capital shortages Faster required development time Shorter product life cycles,12-8,Organizational Arrangements,New-product deployment requires specific criteri
7、a one company established the following acceptance criteria The product can be introduced within five years The product has a market potential of at least $50 million and a 15 percent growth rate. The product would provide at least 30 percent return on sales and 40 percent on investment. The product
8、 would achieve technical or market leadership.,12-9,Budgeting For New Product Development 3Ms approach: 15% rule Each promising idea gets an “executive champion” Expect some failures Golden Step awards handed out each year,Organizational Arrangements,12-10,3M online: The 3M Innovation Network,12-11,
9、Table 12.1 Finding One Successful New Product (Starting with 64 New Ideas),12-12,Organizational Arrangements,Organizing New-Product Development Product managers New-product managers High-level management committee New product department Venture teams,12-13,Stage-gate system Gatekeepers make one of f
10、our decisions: Go Kill Hold Recycle,Organizational Arrangements,12-14,Idea Generation Interacting with Others Sales representatives Intermediaries Product champion,Managing the Development Process: Ideas,12-15,Techniques for stimulating creativity in individuals and groups Attribute listing Forced r
11、elationships Morphological analysis Reverse assumption analysis New contexts Mind-mapping,Managing the Development Process: Ideas,12-16,Idea Screening Idea manager Idea committee Two types of errors in screening ideas DROP-error GO-error,Managing the Development Process: Ideas,12-17,Some of the most
12、 notable “drop-errors” have come from the most recognizable names in American business. Xerox saw the potential of the copy machine, IBM and Eastman Kodak did not. IBM thought the personal computer market would be miniscule. Can you think of any “drop-errors” that the company didnt survive?,Discussi
13、on Question,12-18,Table 12.2 Product-Idea Rating Device,12-19,Managing the Development Process: Concept to Strategy,Concept Development and Testing Product idea Product concept Concept development Category concept Productpositioning map Brand concept,12-20,Figure 12.3: Product and Brand Positioning,
14、12-21,Sometimes a new product is developed, like the felt-tip pen and the “walkman” style personal music device. Consumers werent clamoring for either of these products before they came to market. Most people hadnt even conceived of such an item. Careful planning developed markets for these new line
15、s. Can you think of more recent examples?,Discussion Question,12-22,Managing the Development Process: Concept to Strategy,Concept Testing Rapid prototyping Virtual reality Customer-driven engineering Questions to measure product dimensions Communicability and believability Need level Gap level Need-
16、gap score,12-23,Managing the Development Process: Concept to Strategy,Perceived value Purchase intention User targets, purchase occasions, purchasing frequency Conjoint Analysis Example: five design elements Three package designs Three brand names Three prices Possible Good Housekeeping seal Possible money-back guarantee,12-24,Managing the Development Process: Concept to Strategy,Marketing Strategy Business Analysis Estimating Total Sales,12-25,Managing the Development Process: Concept to Strategy,
