New Product Development

Objectives
Challenges a company faces in developing and introducing new products Stages in developing new products and how they can be better managed

Buying Roles of Consumers

Initiator Influencer Decider Buyer User Gatekeeper

New to the world products

Slide 11 in Chapter 10

New Product Lines

Addition to existing product lines Tata Motors Ltd.

Improvements and revision of existing products i Phone 4

i Phone 2

Repositioned products Blackberry

Cost reduction products

LPG Cars Induction cookers

JCB

New product failure

95% of new US consumer products 90% of new European consumer products

Reasons for failure

Ignoring unfavorable market research Overestimating market size Marketing mix decision errors Stronger than anticipated competitor actions

Successful products
Strong relative advantage Reflect better understanding of customer needs Beat the competition to market Exhibit higher performance-to-cost ratios and higher contribution margins Are launched with larger budgets Have stronger top management support