Objectives Challenges in New Product Development(NPD) Organizational structure NPD Stages Management of NPD Diffusion Adoption of New Products @2000 Prentice Hall
©2000 Prentice Hall Objectives Challenges in New Product Development (NPD) Organizational Structure & NPD Stages & Management of NPD Diffusion & Adoption of New Products
Why New Products Fail “ Over Championing Overestimated demand Poor design Poor Marketing EXecution High development Costs Strong Competitive Reaction @2000 Prentice Hall
©2000 Prentice Hall Why New Products Fail “Over Championing” Overestimated Demand Poor Design Poor Marketing Execution High Development Costs Strong Competitive Reaction
Challenges in NPD Idea Shortage Fragmented Markets Social Governmental Constraints Cost Capital Shortage Need for Speed Shorter Product Life Cycles @2000 Prentice Hall
©2000 Prentice Hall Challenges in NPD Idea Shortage Fragmented Markets Social & Governmental Constraints Cost Capital Shortage Need for Speed Shorter Product Life Cycles
Probability of Success Overall Probability Probability of Probability of probability of technical commercialization economIc of success completion given technical success given completion commercialization @2000 Prentice Hall
©2000 Prentice Hall 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
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 @2000 Prentice Hall
©2000 Prentice Hall 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
Consumer-Goods Market Testing Simulated Controlled Test Market Test Market Test in a simulated A few stores that have shopping environment agreed to carry new to a sample of products for a fee Sales consumers Wave Standard Research Test Market Test offering trail to Full marketing campaign a sample of in a small number of consumers in representative cities successive periods. @2000 Prentice Hall
©2000 Prentice Hall Consumer-Goods Market Testing SalesWave 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
Commercialization Ⅸ Product When Place romotion Where @2000 Prentice Hall
©2000 Prentice Hall Commercialization When Where Whom Product Price Place Promotion
Characteristics of the Innovation rate of Adoption Relative advantage Compatibility Complexity Divisibili Communicability @2000 Prentice Hall
©2000 Prentice Hall Characteristics of the Innovation Rate of Adoption Relative advantage Compatibility Complexity Divisibility Communicability
