Download New-Product Process

Lecture on Developing New
Products and Services
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THE VARIATIONS OF PRODUCTS
• Product Line and Product Mix
• Classifying Products
• Type of User
 Consumer goods
 Business goods
• Degree of Tangibility
• Services and New-Product Development
CLASSIFYING CONSUMER
AND BUSINESS GOODS
• Classification of Consumer Goods
 Convenience goods
 Shopping goods
 Specialty goods
 Unsought goods
Classification of consumer goods
CLASSIFYING CONSUMER
AND BUSINESS GOODS
• Classification of Business Goods
 Production Goods
 Support Goods
 Installations
 Accessory Equipment
 Supplies
 Services
NEW PRODUCTS AND WHY
THEY SUCCEED AND FAIL
• What is a New Product?
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•
•
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Newness Compared with Existing Products
Newness in Legal Terms
Newness from the Company’s Perspective
Newness from the Consumer’s Perspective
Consumption effects define newness
NEW PRODUCTS AND WHY
THEY SUCCEED AND FAIL
• Marketing Reasons for Failures
 Insignificant “point of difference”
 Incomplete market and product definition
(Protocol)
 Too little market attractiveness
 Poor execution of the marketing mix
 Poor product quality or sensitivity
 Bad timing
 No economical access to buyers
NEW-PRODUCT PROCESS
THE NEW-PRODUCT PROCESS
• New-Product Strategy Development
• Objectives of the Stage: Identify Markets
and Strategic Roles
• 3M: Cross-Functional Teams, Six Sigma,
and Lead Users
THE NEW-PRODUCT PROCESS
• Idea Generation
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Customer and Supplier Suggestions
Employee and Co-Worker Suggestions
Research and Development Breakthroughs
Competitive Products
THE NEW-PRODUCT PROCESS
• Screening and Evaluation
• Internal Approach
• External Approach
THE NEW-PRODUCT PROCESS
• Business Analysis
• Development
• Market Testing
• Test Marketing
Six important U.S. test markets
THE NEW-PRODUCT PROCESS
• Market Testing
• Simulated Test Markets
• When Test Markets Don’t Work
THE NEW-PRODUCT PROCESS
• Commercialization
• Burger King’s French Fries: The
Complexities of Commercialization
• The Risks and Uncertainties of the
Commercialization Stage
 Slotting fee
 Failure fee
• Speed as a Factor in New-Product Process
Marketing
information and
methods
used in the newproduct process