1、12-112-2 Who should ultimately design the product?The customer,of course.Kotler on Marketing12-3Chapter Objectives In this chapter,we focus on the following questions:What challenges does a company face in developing new products?What organizational structures are used to manage new-product developm
2、ent?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?12-4Developing New Market Offerings Six categories of new products1.New-to-the-world products2.New product lines3.Addi
3、tions to existing product lines4.Improvements and revisions of existing products5.Repositioning6.Cost reductions12-5Challenges in New-Product Development Incremental innovation Disruptive technologies Why do new products fail?A high-level executive pushes a favorite idea through in spite of negative
4、 research findings.The idea is good,but the market size is overestimated.The product is not well designed.12-6Challenges in New-Product Development The product is incorrectly positioned in the market,not advertised effectively,or overpriced.The product fails to gain sufficient distribution coverage
5、or support.Development costs are higher than expected.Competitors fight back harder than expected.12-7Challenges in New-Product Development Factors that tend to hinder new-product development Shortage of important ideas in certain areas Fragmented markets Social and governmental constraints Cost of
6、development Capital shortages Faster required development time Shorter product life cycles12-8Organizational Arrangements New-product deployment requires specific criteria one company established the following acceptance criteria The product can be introduced within five years The product has a mark
7、et 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 leadership.12-9 Budgeting For New Product Development 3Ms approach:15%rule Each promising idea get
8、s an“executive champion”Expect some failures Golden Step awards handed out each yearOrganizational Arrangements 12-1012-11Table 12.1 Finding One Successful New Product(Starting with 64 New Ideas)12-12Organizational Arrangements Organizing New-Product Development Product managers New-product managers
9、 High-level management committee New product department Venture teams12-13 Stage-gate system Gatekeepers make one of four decisions:Go Kill Hold RecycleOrganizational Arrangements12-14 Idea Generation Interacting with Others Sales representatives Intermediaries Product championManaging the Developme
10、nt Process:Ideas12-15 Techniques for stimulating creativity in individuals and groups Attribute listing Forced relationships Morphological analysis Reverse assumption analysis New contexts Mind-mappingManaging the Development Process:Ideas12-16Managing the Development Process:Ideas12-1712-18Table 12
11、.2 Product-Idea Rating Device12-19Managing the Development Process:Concept to Strategy Concept Development and Testing Product idea Product concept Concept development Category concept Productpositioning map Brand concept12-20Figure 12.3:Product and Brand Positioning12-2112-22Managing the Developmen
12、t 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-gap score12-23Managing the Development Process:Concept to Strategy Perceived value Purchase
13、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 guarantee12-24Managing the Development Process:Concept to Strategy12-25Managing the D
14、evelopment Process:Concept to Strategy Survival-age distribution Estimating Cost and Profits12-26Table 12.3 Projected Five-Year-Cash-Flow Statement(in thousands of dollars)See text for complete table12-27Managing the Development Process:Concept to Strategy Break-even analysis Risk analysis12-28Manag
15、ing The Development Process:Development to Commercialization Product Development Quality Function Deployment(QFD)Customer attributes(CAs)Engineering attributes(EAs)12-29 Managing The Development Process:Development to Commercialization Customer tests Alpha testing Beta testing Consumer preference me
16、asures Rank-order Paired-comparison Monadic-rating12-30 Managing The Development Process:Development to Commercialization Market Testing Consumer-Goods Market Testing Seeks to estimate four variables Trial First repeat Adoption Purchase frequency Sales wave research12-31 Managing The Development Pro
17、cess:Development to Commercialization Simulated Test Marketing Controlled Test Marketing Test Markets How many test cities?Which cities?Length of test?What information?What action to take?Business-Goods Market Testing12-32Managing The Development Process:Development to Commercialization Commercializ
18、ation When(Timing)1.First entry2.Parallel entry3.Late entry Where(Geographic Strategy)12-33 To Whom(Target-Market Prospects)How(Introductory Market Strategy)Critical path scheduling(CPS)Managing The Development Process:Development to Commercialization 12-34The Consumer-Adoption Process Adoption Cons
19、umer-adoption process Consumer-loyalty process Mass-market approach Heavy-usage target marketing Stages in the Adoption Process Innovation Innovation diffusion process12-35The Consumer-Adoption Process Adopters of new products move through five stages Awareness Interest Evaluation Trial Adoption Fac
20、tors Influencing the Adoption Process Readiness to Try New Products and Personal Influence12-36Figure 12.7:Adopter Categorization on the Basis of Relative Time of Adoption of Innovation12-37The Consumer-Adoption Process Personal influence Characteristics of the Innovation Relative advantage Compatibility Complexity Divisibility Communicability Organizations Readiness to Adopt Innovations
