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Click to edit Master title style,Click to edit Master text styles,Second Level,Third Level,Fourth Level,Fifth Level,*,2000,Prentice Hall,Chapter 11,Developing New,Market Offerings,1,Objectives,Challenges in New Product Development (NPD),Organizational Structure & NPD,Stages & Management of NPD,Diffusion & Adoption of New Products,2,Why New Products Fail,“,Over Championing”,Overestimated Demand,Poor Design,Poor Marketing Execution,High Development Costs,Strong Competitive Reaction,3,Challenges in NPD,Idea Shortage,Fragmented Markets,Social & Governmental Constraints,Cost,Capital Shortage,Need for Speed,Shorter Product Life Cycles,4,New Product Development Process,Idea,Generation,Concept,Development,and Testing,Marketing,Strategy,Development,Idea,Screening,Business,Analysis,Product,Development,Market,Testing,Commercialization,5,Probability of Success,Probability,of technical,completion,Overall,probability,of success,=,Probability of,commercialization,given technical,completion,X,Probability of,economic,success given,commercialization,X,6,Concept Development & Testing,1.,Develop Product Ideas into,Alternative Product Concepts,2.,Concept Testing - Test the Product,Concepts with Groups of Target Customers,3.,Choose the Best One,7,High price/oz.,Low in calories,Low price/oz.,High in calories,Product & Brand Positioning,(,a) Product-positioning,map,(breakfast market),Expensive,Slow,Inexpensive,Quick,Bacon,and,eggs,Pancakes,Instant,breakfast,Cold,cereal,Hot,cereal,b) Brand-positioning,map,(instant breakfast market),Brand C,Brand B,Brand A,8,Conjoint Analysis,Brand name,-,-,-,-,-,Utility,1.0,0,| | |,K2R Glory Bissell,Retail Price,Utility,-,-,-,-,-,1.0,0,| | |,$1.19 $1.39 $1.59,Good Housekeeping Seal?,Utility,1.0,-,-,-,-,-,0,| |,No Yes,Utility,Money-Back,Guarantee?,1.0,-,-,-,-,-,0,| |,No Yes,9,Consumer-Goods Market Testing,Sales-,Wave,Research,Test offering trail to,a sample of,consumers in,successive,periods.,Simulated,Test Market,Test in a simulated,shopping environment,to a sample of,consumers.,Standard,Test Market,Full marketing campaign,in a small number of,representative cities.,Controlled,Test Market,A few stores that have,agreed to carry new,products for a fee.,10,Commercialization,When,Where,Whom,Product,Price,Place,Promotion,11,2,1,/2%,Innovators,13,1,/2%,Early,adopters,34%,Early,majority,34%,Late,majority,16%,Laggards,Time of adoption innovations,Adopter Categorization of the Basis of Relative Time of Adoption of Innovations,12,Characteristics of the Innovation Rate of Adoption,Relative advantage,Compatibility,Complexity,Divisibility,Communicability,13,
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