Kotler MM 13e Overheads 20

Introducing

New Market Offerings

Chapter Questions

• What challenges does a company face

in developing new products and

services?

• What organizational structures and

processes do managers use to manage

new-product development?

Chapter Questions (cont.)

• What is the best way to manage the

new-product development process?

• What factors affect the rate of diffusion

and consumer adoption of newly

Categories of New Products

New-to-the-world

New product lines

Factors That Limit

New Product Development

• Shortage of ideas

• Fragmented markets

• Social and governmental constraints

• Cost of development

• Capital shortages

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Idea Generation: Creativity Techniques

• Attribute listing

• Forced relationships

• Morphological

analysis

• Reverse assumption

analysis

Lateral Mapping

• Gas stations + food

• Cafeteria + Internet

• Cereal + snacking

• Candy + toy

Concepts in Concept Development

• Product idea

• Product concept

• Category concept

• Brand concept

Concept Testing

• Communicability and believability

• Need level

• Gap level

• Perceived value

• Purchase intention

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Marketing Strategy

• Target market’s size, structure, and

behavior

• Planned price, distribution, and

promotion for year one

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Test Market Decisions

• How many test cities?

• Which cities?

• Length of test?

Criteria for

Choosing Rollout Markets

• Market potential

• Company’s local reputation

• Cost of filling pipeline

Stages in the Adoption Process

Awareness

Interest

Evaluation

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Characteristics of an Innovation

• Relative advantage

• Compatibility

• Complexity

• Divisibility