Kotler MM 13e Overheads 20
20
Introducing
New Market Offerings
Marketing Management, 13th ed
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?
• What are the main stages in developing
new products and services?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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
launched products and services?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Categories of New Products
New-to-the-world
New product lines
Additions
Improvements
Repositionings
Cost reductions
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Table 20.4 Finding One Successful
New Product
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 20.2 The New Product
Development Decision Process
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Idea Generation: Creativity Techniques
• Attribute listing
• Forced relationships
• Morphological
analysis
• Reverse assumption
analysis
• New contexts
• Mind mapping
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Lateral Mapping
•
•
•
•
•
Gas stations + food
Cafeteria + Internet
Cereal + snacking
Candy + toy
Audio + portable
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Table 20.5 Product-Idea
Rating Device
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Concepts in Concept Development
•
•
•
•
•
Product idea
Product concept
Category concept
Brand concept
Concept testing
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Concept Testing
•
•
•
•
•
•
Communicability and believability
Need level
Gap level
Perceived value
Purchase intention
User targets, purchase occasions,
purchasing frequency
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 20.6 Utility Functions Based on
Conjoint Analysis
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Strategy
• Target market’s size, structure, and
behavior
• Planned price, distribution, and
promotion for year one
• Long-run sales and profit goals and
marketing-mix strategy over time
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 20.7 Product Life Cycle Sales
for Three Product Types
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Test Market Decisions
•
•
•
•
•
How many test cities?
Which cities?
Length of test?
What information to collect?
What action to take?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Criteria for
Choosing Rollout Markets
•
•
•
•
Market potential
Company’s local reputation
Cost of filling pipeline
Cost of communication media
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 20.6 Adopter Categorization
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Characteristics of an Innovation
•
•
•
•
•
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Introducing
New Market Offerings
Marketing Management, 13th ed
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?
• What are the main stages in developing
new products and services?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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
launched products and services?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Categories of New Products
New-to-the-world
New product lines
Additions
Improvements
Repositionings
Cost reductions
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Table 20.4 Finding One Successful
New Product
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 20.2 The New Product
Development Decision Process
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Idea Generation: Creativity Techniques
• Attribute listing
• Forced relationships
• Morphological
analysis
• Reverse assumption
analysis
• New contexts
• Mind mapping
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Lateral Mapping
•
•
•
•
•
Gas stations + food
Cafeteria + Internet
Cereal + snacking
Candy + toy
Audio + portable
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Table 20.5 Product-Idea
Rating Device
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Concepts in Concept Development
•
•
•
•
•
Product idea
Product concept
Category concept
Brand concept
Concept testing
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Concept Testing
•
•
•
•
•
•
Communicability and believability
Need level
Gap level
Perceived value
Purchase intention
User targets, purchase occasions,
purchasing frequency
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 20.6 Utility Functions Based on
Conjoint Analysis
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Marketing Strategy
• Target market’s size, structure, and
behavior
• Planned price, distribution, and
promotion for year one
• Long-run sales and profit goals and
marketing-mix strategy over time
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 20.7 Product Life Cycle Sales
for Three Product Types
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Test Market Decisions
•
•
•
•
•
How many test cities?
Which cities?
Length of test?
What information to collect?
What action to take?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Criteria for
Choosing Rollout Markets
•
•
•
•
Market potential
Company’s local reputation
Cost of filling pipeline
Cost of communication media
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Figure 20.6 Adopter Categorization
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Characteristics of an Innovation
•
•
•
•
•
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall