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Introducing
New Market Offerings
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
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The Worlds
Most Innovative Companies
Apple
Google
Toyota
General Electric
Microsoft
Procter & Gamble
3M
Walt Disney
IBM
Sony
Wal-Mart
Honda
Starbucks
Target
BMW
Samsung
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Shortage of ideas
Fragmented markets
Social and governmental constraints
Cost of development
Capital shortages
Faster required development time
Shorter product life cycles
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Lateral Mapping
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Variations on Failure
Absolute product failure
Partial product failure
Relative product failure
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Product idea
Product concept
Category concept
Brand concept
Concept testing
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Concept Testing
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Marketing Strategy
Target markets size, structure, and
behavior
Planned price, distribution, and
promotion for year one
Long-run sales and profit goals and
marketing-mix strategy over time
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Product Development
Quality function
deployment (QFD)
Customer attributes
Engineering attributes
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Prototype Testing
Alpha testing
Beta testing
Rank-order method
Paired-comparison method
Monadic-rating method
Market testing
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Sales-Wave Research
Simulated Test Marketing
Controlled Test Marketing
Test Markets
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Criteria for
Choosing Rollout Markets
Market potential
Companys local reputation
Cost of filling pipeline
Cost of communication media
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What is Adoption?
Adoption is an individuals decision to become
a regular user of a product.
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Characteristics of an Innovation
Relative advantage
Compatibility
Complexity
Divisibility
Communicability
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Marketing Debate
Who should you target with new products?
Take a position:
1. Consumer research is critical to new-product
development.
or
2. Consumer research may not be all that
helpful in new-product development.
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
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Marketing Discussion
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