Developing and Managing Products

CHAPTER
11
New
NewProduct
Product Development
Development
Designed by SARFARAZ SARWAR KHAN
DIT, BSIT, MBA (MKT/HR), MS (Supply Chain)
Eric Brengle Certified Professional Marketer (Asia Pacific)
B-books, Ltd. Marketing Association of Pakistan
Cell: 0300-2111257 | Email: sarfarazpk@gmail.com
Copyright ©2009 by Cengage Learning Inc. All rights reserved 1
 So, You have launched a New Product

New A product new to the world,

NewProduct
Product
the market, the producer,
the seller, or some
combination of these.

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 New Product Advantages

Being first on the market has numerous advantages:

•Increased sales through longer sales life

•Increased margins
•Increased product loyalty
•More resale opportunities
•Greater market responsiveness
•A sustained leadership position

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 LOI REVIEW LEARNING OUTCOME
Developing New Products

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 New Product Success Factors
Factors in Successful
New Products

Match between product and market needs

Different from substitute products

Benefit to large number of people

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 New Product Success Factors

Listening to customers Strong leadership

Producing the best Commitment to new-

product product development

Project-based team
Vision of future market
approach

Willingness to fail
Getting every aspect right
occasionally

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 REVIEW LEARNING OUTCOME
Why Products Succeed or Fail?

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 Global Issues in New-Product Development

 Develop product for potential

worldwide distribution

 Build in unique market

requirements

 Design products to meet

regulations and key market
requirements

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 Sustainable Growth Strategy can be….:

Single
Singleproduct
productworldwide
worldwide

Modification
Modificationof
ofproducts
products

Multiple
Multipleproducts
productsin
in
multiple
multiplecountries
countries

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 The Spread of New Products

Explain the diffusion process

through which
new products are adopted

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 LO5
Diffusion

The process by which the

Diffusion
Diffusion adoption of an innovation
spreads.

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 LO5 Sales of New Audio Products

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Assignment
#4
Individual Home Assignment
(To be submitted on or before May 6th, 2020 11am)

Make a single page graph / chart of any 8

products/services launched after 2010 and
mention time-period they took to reach 1
million sales/users/subscribe

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 Marketing Implications
of the Adoption Process

Word
Wordof
ofMouth
Mouth

Communication
Communication
Aids
Aidsthe
the
Diffusion
DiffusionProcess
Process

Direct
Directefforts
effortsfrom
from
Marketer
Marketer

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 Categories of Adopters
Innovators
Innovators

Early
Early Adopters
Adopters

Early
Early Majority
Majority

Late
Late Majority
Majority

Laggards
Laggards
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 REVIEW LEARNING OUTCOME
Diffusion Process for New Products

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 LO6 Product Life Cycles

Explain the concept of

product life cycles

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 LO6
Product Life Cycle

Product A biological metaphor that

Product
Life traces the stages of a
LifeCycle
Cycle
product’s acceptance, from
its introduction (birth) to its
decline (death).

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 Summary
and Queries
SARFARAZ SARWAR KHAN
DIT, BSIT, MBA (MKT/HR), MS (Supply Chain)
Certified Professional Marketer (Asia Pacific)
Marketing Association of Pakistan
Cell: 0300-2111257 | Email: sarfarazpk@gmail.com

Copyright ©2009 by Cengage Learning Inc. All rights reserved