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1、12-1,Chapter 12Developing New Market Offeringsby,PowerPoint byMilton M.PressleyUniversity 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 a compan
2、y 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?,12-4,Developi
3、ng New Market Offerings,Six categories of new productsNew-to-the-world productsNew product linesAdditions to existing product linesImprovements and revisions of existing productsRepositioningCost reductions,12-5,Challenges in New-Product Development,Incremental innovationDisruptive technologiesWhy d
4、o 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 positioned in the market,not
5、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-product developmentShortage of
6、 important ideas in certain areasFragmented marketsSocial and governmental constraintsCost of developmentCapital shortagesFaster required development timeShorter product life cycles,12-8,Organizational Arrangements,New-product deployment requires specific criteria one company established the followi
7、ng acceptance criteriaThe product can be introduced within five yearsThe 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 would achieve technical or market leaders
8、hip.,12-9,Budgeting For New Product Development3Ms approach:15%ruleEach promising idea gets an“executive champion”Expect some failuresGolden Step awards handed out each year,Organizational Arrangements,12-10,3M online:The 3M Innovation Network,12-11,Table 12.1 Finding One Successful New Product(Star
9、ting with 64 New Ideas),12-12,Organizational Arrangements,Organizing New-Product DevelopmentProduct managersNew-product managersHigh-level management committeeNew product departmentVenture teams,12-13,Stage-gate systemGatekeepers make one of four decisions:GoKillHoldRecycle,Organizational Arrangemen
10、ts,12-14,Idea GenerationInteracting with OthersSales representativesIntermediariesProduct champion,Managing the Development Process:Ideas,12-15,Techniques for stimulating creativity in individuals and groupsAttribute listingForced relationshipsMorphological analysisReverse assumption analysisNew con
11、textsMind-mapping,Managing the Development Process:Ideas,12-16,Idea ScreeningIdea managerIdea committeeTwo types of errors in screening ideasDROP-errorGO-error,Managing the Development Process:Ideas,12-17,Some of the most notable“drop-errors”have come from the most recognizable names in American bus
12、iness.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?,Discussion Question,12-18,Table 12.2 Product-Idea Rating Device,12-19,Managing the Development
13、Process:Concept to Strategy,Concept Development and TestingProduct ideaProduct conceptConcept developmentCategory conceptProductpositioning mapBrand concept,12-20,Figure 12.3:Product and Brand Positioning,12-21,Sometimes a new product is developed,like the felt-tip pen and the“walkman”style personal
14、 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 lines.Can you think of more recent examples?,Discussion Question,12-22,Managing the Development Process:C
15、oncept to Strategy,Concept TestingRapid prototypingVirtual realityCustomer-driven engineeringQuestions to measure product dimensionsCommunicability and believabilityNeed levelGap levelNeed-gap score,12-23,Managing the Development Process:Concept to Strategy,Perceived valuePurchase intentionUser targ
16、ets,purchase occasions,purchasing frequencyConjoint AnalysisExample:five design elementsThree package designsThree brand namesThree pricesPossible Good Housekeeping sealPossible money-back guarantee,12-24,Managing the Development Process:Concept to Strategy,Marketing StrategyBusiness AnalysisEstimat
17、ing Total Sales,12-25,Managing the Development Process:Concept to Strategy,Survival-age distributionEstimating Cost and Profits,12-26,Table 12.3 Projected Five-Year-Cash-Flow Statement(in thousands of dollars),See text for complete table,12-27,Managing the Development Process:Concept to Strategy,Bre
18、ak-even analysisRisk analysis,12-28,Managing The Development Process:Development to Commercialization,Product DevelopmentQuality Function Deployment(QFD)Customer attributes(CAs)Engineering attributes(EAs),Lands End Japan Web site,12-29,Managing The Development Process:Development to Commercializatio
19、n,Customer testsAlpha testingBeta testingConsumer preference measuresRank-orderPaired-comparisonMonadic-rating,12-30,Managing The Development Process:Development to Commercialization,Market TestingConsumer-Goods Market TestingSeeks to estimate four variablesTrialFirst repeatAdoptionPurchase frequenc
20、ySales wave research,12-31,Managing The Development Process:Development to Commercialization,Simulated Test MarketingControlled Test MarketingTest MarketsHow many test cities?Which cities?Length of test?What information?What action to take?Business-Goods Market Testing,12-32,Managing The Development
21、 Process:Development to Commercialization,Philips Pronto Web site,CommercializationWhen(Timing)First entry Parallel entry Late entryWhere(Geographic Strategy),12-33,To Whom(Target-Market Prospects)How(Introductory Market Strategy)Critical path scheduling(CPS),Managing The Development Process:Develop
22、ment to Commercialization,The iMac,launched with a dramatic countdown campaign,12-34,The Consumer-Adoption Process,AdoptionConsumer-adoption processConsumer-loyalty processMass-market approachHeavy-usage target marketingStages in the Adoption ProcessInnovationInnovation diffusion process,12-35,The C
23、onsumer-Adoption Process,Adopters of new products move through five stagesAwarenessInterestEvaluationTrialAdoptionFactors Influencing the Adoption ProcessReadiness to Try New Products and Personal Influence,12-36,Figure 12.7:Adopter Categorization on the Basis of Relative Time of Adoption of Innovation,12-37,The Consumer-Adoption Process,Personal influenceCharacteristics of the InnovationRelative advantageCompatibilityComplexityDivisibilityCommunicabilityOrganizations Readiness to Adopt Innovations,
