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1、Chapter 12Developing New Market OfferingsbyPowerPoint byMilton M. PressleyUniversity of New Orleans1編輯ppt Who should ultimately design the product? The customer, of course.Kotler on Marketing2編輯pptChapter Objectives In this chapter, we focus on the following questions:What challenges does a company
2、face in developing new products?What organizational structures are used to manage new-product development?What are the main stages in developing new products, and how can they be managed better?What factors affect the rate of diffusion and consumer adoption of newly launched products?3編輯pptDevelopin
3、g New Market Offerings Six categories of new productsNew-to-the-world productsNew product linesAdditions to existing product linesImprovements and revisions of existing productsRepositioningCost reductions4編輯pptChallenges in New-Product Development Incremental innovationDisruptive technologiesWhy do
4、 new products fail?A high-level executive pushes a favorite idea through in spite of negative research findings.The idea is good, but the market size is overestimated.The product is not well designed.5編輯pptChallenges in New-Product Development The product is incorrectly positioned in the market, not
5、 advertised effectively, or overpriced.The product fails to gain sufficient distribution coverage or support.Development costs are higher than expected.Competitors fight back harder than expected.6編輯pptChallenges in New-Product Development Factors that tend to hinder new-product developmentShortage
6、of important ideas in certain areasFragmented marketsSocial and governmental constraintsCost of developmentCapital shortagesFaster required development timeShorter product life cycles7編輯pptOrganizational Arrangements New-product deployment requires specific criteria one company established the follo
7、wing acceptance criteriaThe product can be introduced within five yearsThe product has a market potential of at least $50 million and a 15 percent growth rate.The product would provide at least 30 percent return on sales and 40 percent on investment.The product would achieve technical or market lead
8、ership.8編輯pptBudgeting For New Product Development3Ms approach:15% ruleEach promising idea gets an “executive champion”Expect some failuresGolden Step awards handed out each yearOrganizational Arrangements 9編輯ppt3M online: The 3M Innovation Network10編輯pptTable 12.1 Finding One Successful New Product
9、 (Starting with 64 New Ideas)StageNumber of IdeasPass RatioCost per Product IdeaTotal Cost1. Idea screening641:4$ 1,000$ 64,0002. Concept testing161:220,000320,0003. Product development81:2200,0001,600,0004. Test marketing41:2500,0002,000,0005. National launch21:25,000,00010,000,000$5,721,000$13,984
10、,00011編輯pptOrganizational ArrangementsOrganizing New-Product DevelopmentProduct managersNew-product managersHigh-level management committeeNew product departmentVenture teams12編輯pptStage-gate systemGatekeepers make one of four decisions:GoKillHoldRecycleOrganizational Arrangements13編輯pptIdea Generat
11、ionInteracting with OthersSales representativesIntermediariesProduct championManaging the Development Process: Ideas14編輯pptTechniques for stimulating creativity in individuals and groupsAttribute listingForced relationshipsMorphological analysisReverse assumption analysisNew contextsMind-mappingMana
12、ging the Development Process: Ideas15編輯pptIdea ScreeningIdea managerIdea committeeTwo types of errors in screening ideasDROP-errorGO-errorManaging the Development Process: Ideas16編輯pptSome of the most notable “drop-errors” have come from the most recognizable names in American business. Xerox saw th
13、e potential of the copy machine, IBM and Eastman Kodak did not. IBM thought the personal computer market would be miniscule. Can you think of any “drop-errors” that the company didnt survive?Discussion Question17編輯pptTable 12.2 Product-Idea Rating DeviceRelative WeightProduct ScoreProduct RatingProd
14、uct Success Requirements(a)(b)(c = a x b)Unique or superior product.40.8.32High performance to cost ratio.30.6.18High marketing dollar support.20.7.14Lack of strong competition.10.5.05Total1.00.69 Rating scale: .00-.30 poor; .31-.60 fair; .61-.80 good. Minimum acceptance rate: .6118編輯pptManaging the
15、 Development Process: Concept to StrategyConcept Development and TestingProduct ideaProduct conceptConcept developmentCategory conceptProductpositioning mapBrand concept19編輯pptFigure 12.3: Product and Brand Positioning20編輯pptSometimes a new product is developed, like the felt-tip pen and the “walkma
16、n” style personal music device. Consumers werent clamoring for either of these products before they came to market. Most people hadnt even conceived of such an item. Careful planning developed markets for these new lines. Can you think of more recent examples?Discussion Question21編輯pptManaging the D
17、evelopment Process: Concept to StrategyConcept TestingRapid prototypingVirtual realityCustomer-driven engineeringQuestions to measure product dimensionsCommunicability and believabilityNeed levelGap levelNeed-gap score22編輯pptManaging the Development Process: Concept to StrategyPerceived valuePurchas
18、e intentionUser targets, purchase occasions, purchasing frequencyConjoint AnalysisExample: five design elementsThree package designsThree brand namesThree pricesPossible Good Housekeeping sealPossible money-back guarantee23編輯pptManaging the Development Process: Concept to StrategyMarketing StrategyB
19、usiness AnalysisEstimating Total Sales24編輯pptManaging the Development Process: Concept to StrategySurvival-age distributionEstimating Cost and Profits25編輯pptTable 12.3 Projected Five-Year-Cash-Flow Statement (in thousands of dollars)Year 0Year 1Year 2Year 31. Sales revenue$ 0$11,889$15,381$19,6542.
20、Cost of goods sold03,9815,1506,5813. Gross margin07,90810,23113,0734. Development costs-3,5000005. Marketing costs08,0006,4608,2556. Allocated overhead01,1891,5381,965See text for complete table26編輯pptManaging the Development Process: Concept to StrategyBreak-even analysisRisk analysis27編輯pptManagin
21、g The Development Process: Development to Commercialization Product DevelopmentQuality Function Deployment (QFD)Customer attributes (CAs)Engineering attributes (EAs)Lands End Japan Web site28編輯ppt Managing The Development Process: Development to CommercializationCustomer testsAlpha testingBeta testi
22、ngConsumer preference measuresRank-orderPaired-comparisonMonadic-rating29編輯ppt Managing The Development Process: Development to CommercializationMarket TestingConsumer-Goods Market TestingSeeks to estimate four variablesTrialFirst repeatAdoptionPurchase frequencySales wave research30編輯ppt Managing T
23、he Development Process: Development to CommercializationSimulated Test MarketingControlled Test MarketingTest MarketsHow many test cities?Which cities?Length of test?What information?What action to take?Business-Goods Market Testing31編輯pptManaging The Development Process: Development to Commercialization Philips Pronto Web site CommercializationWhen (Timing) First entry Parallel entry Late entryWhere (Geographic Strategy)32編輯pptTo Whom (Target-Market Prospects)How (Introductory Market Strategy)Critical path scheduling (CPS)Managing The Development Process: Development to Comm
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