Directory UMM :Slide_Kuliah:PPT:MP_Kotler_10:

Objectives
 Challenges

in New Product
Development (NPD)
 Organizational Structure & NPD
 Stages & Management of NPD
 Diffusion & Adaption of New Products

©2000 Prentice Hall

Why New Products Fail
 “Over

Championing”
 Overestimated Demand
 Poor Design
 Poor Marketing Execution
 High Development Costs
 Strong Competitive Reaction

©2000 Prentice Hall

Challenges in NPD
 Idea

Shortage
 Fragmented Markets
 Social & Governmental Constraints
 Cost
 Capital Shortage
 Need for Speed
 Shorter Product Life Cycles
©2000 Prentice Hall

New Product Development
Process
Marketing
Strategy
Development
Concept

Development
and Testing
Idea
Screening

©2000 Prentice Hall

Idea
Generation

Business
Analysis
Product
Development

Market
Testing

Commercialization

Probability of Success

Overall
probability
of success

©2000 Prentice Hall

=

Probability
of technical
completion

X

Probability of
commercialization
given technical
completion

Probability of
economic
success given
commercialization

X

Concept Development &
Testing
1.
1. Develop
DevelopProduct
ProductIdeas
Ideasinto
into
Alternative
AlternativeProduct
ProductConcepts
Concepts

2.
2. Concept
ConceptTesting
Testing--Test
Testthe
theProduct
Product
Concepts
Conceptswith
withGroups
Groupsof
ofTarget
TargetCustomers
Customers

3.
3. Choose
Choosethe
theBest

BestOne
One
©2000 Prentice Hall

Product & Brand
Positioning
High price/oz.

Pancakes
Hot
cereal

Instant
breakfast

Inexpensive
©2000 Prentice Hall

Quick

Bacon
and
eggs

Cold
cereal

Low in calories

Expensive
Slow

b) Brand-positioning
map
(instant breakfast market)
Brand C

Brand B
Brand A

Low price/oz.

High in calories

(a) Product-positioning
map
(breakfast market)

Conjoint Analysis
Brand name

©2000 Prentice Hall

Utility

Utility

1.0 ------ |
|
|

|
|
0 $1.19 $1.39 $1.59 Money-Back
Glory Bissell
Good Housekeeping Seal?
Guarantee?
1.0-1.0--------- |
|
|
0-- |No
0 No
Yes
Yes
Utility

Utility

1.0 ------ |
0 K2R

Retail Price

Consumer-Goods Market
Testing
Simulated
Simulated
Test
Test Market
Market
Test
Testin
inaasimulated
simulated
shopping
shoppingenvironment
environment
to
toaasample
sampleof
of

SalesSales- consumers.
consumers.

Wave
Wave
Research
Research

Test
Testoffering
offeringtrail
trailto
to
aasample
sampleof
of
consumers
consumersin
in
successive
successive
periods.
periods.
©2000 Prentice Hall

Controlled
Controlled
Test
Test Market
Market
AAfew
fewstores
storesthat
thathave
have
agreed
agreedto
tocarry
carrynew
new
products
for
a
fee.
products for a fee.

Standard
Standard
Test
Test Market
Market

Full
Fullmarketing
marketingcampaign
campaign
in
inaasmall
smallnumber
numberof
of
representative
representativecities.
cities.

Commercialization

Whom
When

Product
Price
Place
Promotion

Where

©2000 Prentice Hall

Adopter Categorization of the Basis of
Relative Time of Adoption of Innovations

34%
Early
majority
2 1/2%
Innovators

13 1/2%
Early
adopters

34%
Late
majority
16%
Laggards

Time of adoption innovations
©2000 Prentice Hall

Characteristics of the
Innovation Rate of Adoption
 Relative

advantage
 Compatibility
 Complexity
 Divisibility
 Communicability

©2000 Prentice Hall

Review
 Challenges

in New Product
Development (NPD)
 Organizational Structure & NPD
 Stages & Management of NPD
 Diffusion & Adaption of New Products

©2000 Prentice Hall