MARKETING MANAGEMENT
12th edition
20
Introducing New
Market Offerings
20-2
Chapter Questions
• What challenges does 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?
• What is the best way to set up the new-product development process?
• What factors affect the rate of diffusion and
20-3
3M Emphasizes
20-4
Categories of New Products
New-to-the-world
Cost reductions New product lines
Additions
Improvements
20-5
20-6
Factors That Limit New Product
Development
• Shortage of ideas
• Fragmented markets
• Social and governmental constraints
• Cost of development
• Capital shortages
20-7
20-8
Venture Team
Cross-functional group charged with
developing a specific product or business; intrapreneurs are relieved of other duties
20-9
Criteria for Staffing Venture Teams
• Desired team leadership style • Desired level of leader
expertise
• Team member skills and expertise
20-10
Figure 20.1 The New
20-11
Idea Generation: Creativity Techniques
• Attribute listing
• Forced relationships • Morphological
analysis
• Reverse assumption analysis
20-12
Lateral Mapping
• Gas stations + food • Cafeteria + Internet • Cereal + snacking • Candy + toy
20-13
Variations on Failure
20-15
Concepts in Concept Development
• Product idea
• Product concept
• Category concept
• Brand concept
20-16
Concept Testing
• Communicability and believability
• Need level
• Gap level
• Perceived value
• Purchase intention
20-17
Figure 20.5 Utility Functions Based
20-18
20-19
Marketing Strategy
• Target market’s size, structure, and
behavior
• Planned price, distribution, and promotion
for Year 1
20-20
Figure 20.6 PLS Sales for Three
20-21
20-22
Product Development
• Quality function deployment (QFD)
– Customer attributes – Engineering
20-23
Prototype Testing
• Alpha testing
• Beta testing
– Rank-order method
– Paired-comparison method
– Monadic-rating method
20-24
Consumer Goods Market Testing
• Sales-Wave Research • Simulated Test
Marketing
• Controlled Test Marketing
20-25
Test Market Decisions
• How many test cities?
• Which cities?
• Length of test?
20-26
Timing of Market Entry
• First entry
20-27
Criteria for Choosing Rollout Markets
• Market potential
• Company’s local reputation
• Cost of filling pipeline
20-28
Consumer-Adoption Process
Adoption is an individual’s decision
to become a regular user
20-29
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
20-31
Characteristics of an Innovation
• Relative advantage
• Compatibility
• Complexity
• Divisibility
20-32
Marketing Debate
Who should you target with new
products?
Take a position:
1. New products should always target new adopters.
20-33
Marketing Discussion
Think about the last new product
you bought. How do you think
its success will be affected by
