Download Improved product

New Products Classified by Product Objective
Product Objective
Degree of Technological Newness
Degree of
market
newness
No technological
change
No
market
change
Improved technology
New technology
Reformulation
Make minor modifications
in product to reduce cost
and/or improve quality.
Replacement
Make major modifications
in product to reduce cost
and/or improve quality.
Strengthen
market
Remerchandising
Make present products
more attractive to
the type of customers
presently served.
Improved product
Make present product
more useful to present
customers by improving
present technology.
Product line extension
Widen the line of products
offered to present
customers by adopting a
new technology.
New
market
New use
Extend sales of present
products to types of
customers not
presently served.
Market extension
Extend sales to types of
customers not presently
served by offering a
modified present product.
Diversification
Extend sales to types of
customers not presently
served by offering
products of a new
technology.
Development Sequence From Concept to Production Model
FEASIBILITY
DESIGN
DEFINITION
CONCEPT
PROTOTYPE
DEVELOPMENT AND TESTING
PRODUCTION MODEL
New-Product Screening Checklist
Product
Market Potential
A. Demand/Competition
1. Size of latent primary demand
2. Trend in size of latent primary demand
3. Relative importance of benefit of promise
4. Uniqueness of benefit
5. Sensitivity of demand to price
6. Competitive price behavior
7. Number of competitors
8. Number of buyers
B. Buyer Behavior
1. Brand/supplier recognition
2. Brand/supplier loyalty
3. Dependence on channel assistance
4. Dependence on technical assistance
5. Influence of advertising
6. Influence of sales promotion
7. Motive/use segmentation
8. Buyer characteristic segmentation
9. Reciprocity
10. Quality assurance
Relation to Proposal
Effect on Proposal
Not
Do
Very
Not
Very
Very
Appli-
Not
Impor-
Impor-
Favor-
Unfavor-
cable
Know
tant
tant
able
able
Product
Relation to Proposal
C. Channel Behavior
1. Our established channels
2. Full line requirements
3. Exclusive/limited dealing
4. Missionary sales support
5. Trade relations
6. Trade advertisement
7. Sales training
8. Technical support
D. Strategy
1. Push effort (marketing directed to channels)
2. Pull effort (marketing directly to users)
3. Aggressive market expansion
4. Segmentation/skimming (selective marketing/pricing)
5. Product leadership
6. Price leadership
7. Life-cycle effects of product
8. Life-cycle effects on process
Effect on Proposal
Not
Do
Very
Not
Very
Very
Appli-
Not
Impor-
Impor-
Favor-
Unfavor-
cable
Know
tant
tant
able
able
Company Capacity
Relation to Proposal
A. Personnel/Facilities
1. Availability of qualified development personnel
2. Availability of qualified marketing personnel
3. Availability of sales force time, personnel
4. Availability of manufacturing personnel
5. Availability of manufacturing and distribution facilities
6. Availability of investment capital
B. Relative Marketing Effectivness
1. Established reputation
2. Established distribution system
3. Established customer contacts
4. Sales force qualifications
5. Strength of technical support
6. Strength of advertising claims
7. Strength of sales promotion
8. Strength of channel support
Effect on Proposal
Not
Do
Very
Not
Very
Very
Appli-
Not
Impor-
Impor-
Favor-
Unfavor-
cable
Know
tant
tant
able
able
Company Capacity
Relation to Proposal
C. Relative Product Effectiveness
1. Patent and technical strength
2. Capacity of competitors to copy
3. Quality of product
4. Value of product
5. Capacity to improve product
6. Product line synergism
D. Manufacturing Effectiveness
1. Manufacturing know -how
2. Capacity to expand output
3. Capacity to low er unit cost
4. Reliability of output
5. Quality of output
6. Raw material supply
7. Location problems
Effect on Proposal
Not
Do
Very
Not
Very
Very
Appli-
Not
Impor-
Impor-
Favor-
Unfavor-
cable
Know
tant
tant
able
able
Product
E. Firm's Environment
1. Employee safety problems
2. Consumer safety problems
3. Legal problems w ith product, advertising,
distribution, price, etc.
4. By-product disposal problems
5. Conflicts w ith corporate image
6. Conflicts w ith other corporate divisions