Developing New Products Chapter 10
Developing New Products Chapter 10
Management View of a new Product Invention new to the world (10%) New category entries additions to product lines Repositioning (7%) Improvements(37%0)
Management View of a New Product • Invention: New to the world (10%) • New category entries • Additions to Product Lines • Repositioning (7%) • Improvements (37%)
Consumer'sⅤ iew of new Products
Consumer’s View of New Products
NEW PRODUCT DEⅤ ELOPMENT DILEMMA Rewards from success high Risks of failure high
NEW PRODUCT DEVELOPMENT DILEMMA • Rewards from success high Risks of failure high
Why Do New Products Succeed? Product Early entrance Superiority Careful Timing Customer Excellent Orientation Teamwork and Market Execution Attractiveness
Product Superiority Customer Orientation Market Attractiveness Early Entrance Careful Timing Excellent Teamwork and Execution Why Do New Products Succeed?
Why do new products Fail? Improper Targeting and Not Good value Positioning Inadequate Marketing Problems in product and Communication Marketing Planning Poor channel O verpromIsing Management Satisfaction Inadequate profits No Competitive Differentiation
Why Do New Products Fail? Improper Targeting and Positioning Problems in Product and Marketing Planning Overpromising Satisfaction No Competitive Differentiation Not Good Value Inadequate Marketing Communication Poor Channel Management Inadequate Profits
Quicker Cars(WSJ 12195) .Time it takes to develop new vehicle from concept approval to production
Quicker Cars (WSJ 12/95) •Time it takes to develop new vehicle from concept approval to production
1. Idea generation Goal ideas may come from customer suggestions employees research and development competition overseas
1. Idea generation • Goal: • ideas may come from: – customer suggestions – employees – research and development – competition – overseas
2. Screening evaluate new product ideas y adequacy of market demand Y environmental/social standards Y fit with company' s strengths Y fit with company' s image Ask is there a real consumer need for the product? do we have the scientific/ technological ability is the potential large enough to offer some promise of profit
2. Screening • evaluate new product ideas: ¥adequacy of market demand ¥environmental/social standards ¥fit with company's strengths ¥fit with company's image • Ask: – is there a real consumer need for the product? – do we have the scientific/ technological ability – is the potential large enough to offer some promise of profit
3. Business analysis do serious quantitative analysis estimate costs make financial projections
3. Business Analysis • do serious quantitative analysis – estimate costs – make financial projections
