Kotler20_media.ppt 3552KB Aug 31 2008 10:04:22 PM
MARKETING MANAGEMENT
12th edition
20
Introducing New
Market Offerings
Kotler
Keller
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
consumer adoption of newly launched products?
20-2
3M Emphasizes
New Product Development
20-3
Categories of New Products
New-to-the-world
New product lines
Additions
Improvements
Repositionings
Cost reductions
20-4
Innovations
20-5
Factors That Limit New Product
Development
•
•
•
•
•
•
•
Shortage of ideas
Fragmented markets
Social and governmental constraints
Cost of development
Capital shortages
Faster required development time
Shorter product life cycles
20-6
Table 20.1 Finding One
Successful New Product
20-7
Venture Team
Cross-functional group charged with
developing a specific product or business;
intrapreneurs are relieved of other duties
and provided a budget and time frame.
20-8
Criteria for Staffing Venture Teams
• Desired team leadership style
• Desired level of leader
expertise
• Team member skills and
expertise
• Level of interest in concept
• Potential for personal reward
• Diversity of team members
20-9
Figure 20.1 The New ProductDevelopment Decision Process
20-10
Idea Generation: Creativity Techniques
• Attribute listing
• Forced relationships
• Morphological
analysis
• Reverse assumption
analysis
• New contexts
• Mind mapping
20-11
Lateral Mapping
•
•
•
•
•
Gas stations + food
Cafeteria + Internet
Cereal + snacking
Candy + toy
Audio + portable
20-12
Variations on Failure
• Absolute product failure
• Partial product failure
• Relative product failure
20-13
Table 20.2 Product-Idea Rating Device
20-14
Concepts in Concept Development
•
•
•
•
•
Product idea
Product concept
Category concept
Brand concept
Concept testing
20-15
Concept Testing
•
•
•
•
•
•
Communicability and believability
Need level
Gap level
Perceived value
Purchase intention
User targets, purchase occasions,
purchasing frequency
20-16
Figure 20.5 Utility Functions Based
on Conjoint Analysis
20-17
Airlines Use Conjoint Analysis
20-18
Marketing Strategy
• Target market’s size, structure, and
behavior
• Planned price, distribution, and promotion
for Year 1
• Long-run sales and profit goals and
marketing-mix strategy over time
20-19
Figure 20.6 PLS Sales for Three
Product Types
20-20
Table 20.3 Projected 5-year Cash-Flow
Statement (in thousands $)
20-21
Product Development
• Quality function
deployment (QFD)
– Customer attributes
– Engineering
attributes
20-22
Prototype Testing
• Alpha testing
• Beta testing
– Rank-order method
– Paired-comparison method
– Monadic-rating method
• Market testing
20-23
Consumer Goods Market Testing
• Sales-Wave Research
• Simulated Test
Marketing
• Controlled Test
Marketing
• Test Markets
20-24
Test Market Decisions
•
•
•
•
•
How many test cities?
Which cities?
Length of test?
What information?
What action to take?
20-25
Timing of Market Entry
• First entry
• Parallel entry
• Late entry
20-26
Criteria for Choosing Rollout Markets
•
•
•
•
Market potential
Company’s local reputation
Cost of filling pipeline
Cost of communication media
20-27
Consumer-Adoption Process
Adoption is an individual’s decision
to become a regular user
of a product.
20-28
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
20-29
Figure 20.7 Adopter Categorization
20-30
Characteristics of an Innovation
•
•
•
•
•
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
20-31
Marketing Debate
Who should you target with new
products?
Take a position:
1. New products should always target new
adopters.
2. New products should target the broadest
market possible.
20-32
Marketing Discussion
Think about the last new product
you bought. How do you think
its success will be affected by
the five characteristics of an
innovation?
20-33
12th edition
20
Introducing New
Market Offerings
Kotler
Keller
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
consumer adoption of newly launched products?
20-2
3M Emphasizes
New Product Development
20-3
Categories of New Products
New-to-the-world
New product lines
Additions
Improvements
Repositionings
Cost reductions
20-4
Innovations
20-5
Factors That Limit New Product
Development
•
•
•
•
•
•
•
Shortage of ideas
Fragmented markets
Social and governmental constraints
Cost of development
Capital shortages
Faster required development time
Shorter product life cycles
20-6
Table 20.1 Finding One
Successful New Product
20-7
Venture Team
Cross-functional group charged with
developing a specific product or business;
intrapreneurs are relieved of other duties
and provided a budget and time frame.
20-8
Criteria for Staffing Venture Teams
• Desired team leadership style
• Desired level of leader
expertise
• Team member skills and
expertise
• Level of interest in concept
• Potential for personal reward
• Diversity of team members
20-9
Figure 20.1 The New ProductDevelopment Decision Process
20-10
Idea Generation: Creativity Techniques
• Attribute listing
• Forced relationships
• Morphological
analysis
• Reverse assumption
analysis
• New contexts
• Mind mapping
20-11
Lateral Mapping
•
•
•
•
•
Gas stations + food
Cafeteria + Internet
Cereal + snacking
Candy + toy
Audio + portable
20-12
Variations on Failure
• Absolute product failure
• Partial product failure
• Relative product failure
20-13
Table 20.2 Product-Idea Rating Device
20-14
Concepts in Concept Development
•
•
•
•
•
Product idea
Product concept
Category concept
Brand concept
Concept testing
20-15
Concept Testing
•
•
•
•
•
•
Communicability and believability
Need level
Gap level
Perceived value
Purchase intention
User targets, purchase occasions,
purchasing frequency
20-16
Figure 20.5 Utility Functions Based
on Conjoint Analysis
20-17
Airlines Use Conjoint Analysis
20-18
Marketing Strategy
• Target market’s size, structure, and
behavior
• Planned price, distribution, and promotion
for Year 1
• Long-run sales and profit goals and
marketing-mix strategy over time
20-19
Figure 20.6 PLS Sales for Three
Product Types
20-20
Table 20.3 Projected 5-year Cash-Flow
Statement (in thousands $)
20-21
Product Development
• Quality function
deployment (QFD)
– Customer attributes
– Engineering
attributes
20-22
Prototype Testing
• Alpha testing
• Beta testing
– Rank-order method
– Paired-comparison method
– Monadic-rating method
• Market testing
20-23
Consumer Goods Market Testing
• Sales-Wave Research
• Simulated Test
Marketing
• Controlled Test
Marketing
• Test Markets
20-24
Test Market Decisions
•
•
•
•
•
How many test cities?
Which cities?
Length of test?
What information?
What action to take?
20-25
Timing of Market Entry
• First entry
• Parallel entry
• Late entry
20-26
Criteria for Choosing Rollout Markets
•
•
•
•
Market potential
Company’s local reputation
Cost of filling pipeline
Cost of communication media
20-27
Consumer-Adoption Process
Adoption is an individual’s decision
to become a regular user
of a product.
20-28
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
20-29
Figure 20.7 Adopter Categorization
20-30
Characteristics of an Innovation
•
•
•
•
•
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
20-31
Marketing Debate
Who should you target with new
products?
Take a position:
1. New products should always target new
adopters.
2. New products should target the broadest
market possible.
20-32
Marketing Discussion
Think about the last new product
you bought. How do you think
its success will be affected by
the five characteristics of an
innovation?
20-33