Chapter

20
Introducing

New
Market Offerings
Afif Khairi - 8215123458
Satya Yoga P - 8215120520
Manajemen Reg B 2012

New Product Options

O Make or Buy

A company can add new

products
through acquisition or
development.
O Types of New Products
New products range from newto-theworld products that create
an entirely new market to minor
improvement or revisions of existing
products.

Challenges in New-Product
Development
O The Innovation Imperative

Highly innovative firms are able

to identify and quickly seize new
market opportunities.
O New-Product Success
Most established companies
focus on
incremental innovation,
entering new markets by tweaking
products for new customer.

O New-Products Failure

The reasons of new-products

failure are ignored or misinterpreted
market research, overtimes of market
size, high
development costs, poor
design or
ineffectual performance,
incorrect
positioning, advertising
and so on.

Organizational Arrangements
O Budgeting for New-Product Development

When you launch a new product or

service, you need money to fund your
efforts. You will have the money you
need if you plan ahead. Examine the
phases of a launch and determine the
costs associated with each phase so
that you can sustain your efforts until
the product or service pays for it self.

O Organizing New-Product

Development
Companies
organizational aspect of
development in several
the
new-product
decision process.

handle the
new-product
ways. This is
development

Managing the Development

Process: Ideas
O Generating Ideas

New-product ideas can come from

interacting with various groups and
using
creativity-generating
technique.
INTERACTING
WITH OTHERS

INTERACTING
WITH
EMPLOYEES

STUDYING
COMPETITORS

ADOPTING
CREATIVITY
TECHNIQUES

Increasingly, new-product ideas arise from

lateral marketing that combines two product
concepts or ideas to create a new offering. Here
are some successful examples:
GAS STATIONS
+ FOOD

CAFETARIA +
INTERNET

Managing the Development

Process: Concept to Strategy
O Concept Development and Testing

Concept development is
necessary but not sufficient step for
new product
success. Marketers
must
also
distinguish
winning
concepts from losers.
Concept testing means presenting
the
product concept to target
consumers,
physically
or
symbolically, and getting their
reactions.

O Marketing Strategy Development

New-product manager will develop

preliminary three-part strategy plan
for
introducing the new product into
the market.
st
1st

describes the target markets size, structure, and

behavior.

nd
2nd

part outlines the planned price, distribution

strategy, and marketing budget for the first year.

rd
3rd

part of the marketing strategy plan describes the

long-run sales and profit goals and marketingmix
strategy overtime.

O Business Analysis

Estimating
Total
Sales
Total
estimated sales
are the
sum of
estimated first-time sales, replacement
sales, and repeat sales
Estimating Cost and Profit
Cost are estimated by R&D, manufacturing,
marketing, and finance departments

Managing the Development

Process: Development to
Commercialization
O Product Development

The overall process of strategy,

organization, concept generation,
product
and
marketing
plan
creation and evaluation, and
commercialization
of
a
new
product
Physical Prototypes
Customer Test

O Market Testing

Consumer-products test seek to

estimate four variables:
Trial

Frist
Repeat

Adoption

Purchase
Frequen
cy

Consumer may try the product but not rebuy it, or it might
achieve high permanent adoption but low purchase frequency.

O Commercialization

Commercializationis the processor

cycle of introducing a new product or
production method into the market.
The actual launch of a new product
is the final stage of new product
development and the one where the
most moneywill have to be spent
foradvertising, sales promotion, and
other marketing efforts.

The Consumer-Adoption
Process
O Stages in the Adoption Process

The consumer-adoption process is

the mental steps trough which an
individual
passes
from
first
hearing about an innovation to
final adoption, they are:
Awarene
ss

Interest

Evaluatio
n

Trial

Adoption

O Factors Influencing the Adoption

Process
Marketers recognize the
following
characteristics
of
adoption process: difference in
individual readiness to try new
products, the effect of personal
influence,
differing
rates
of
adoption,
and
difference
in
organizations readiness to try
new products.

This Is The End of The

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