New product

Development
• 6000 BC:camel carvan(speed-
8miles/hr)
• 1600 BC: Chariot(Speed-20mph)
• 1784 AD: Rail engine(Spped-10mph)
• 1880 AD: Steam Locomotive(100mph)
• 1939: Aeroplane(400mph)
• 1959: -Do- (800mph)
• 1960: Space craft(18,000mph)
When is a new product
new
• 1.New Technology
• 2.New Innovations
• 3.New to the market
• 4.New to the country
• 4.New category to the
company
• 5.New Brand
• 6.New channels of distribution
• 7.New Package
• 8.New to a product line
• 9.Repositioning
New product
Introduction
• It will double because:
• Technological advance-90%
• Changing consumer need-72%
• Shortening PLC-55%
• Increasing foreign market
access-53%
• Increasing foreign competition-
48%
• Increasing labour cost-35%
• Govt. Regulations-35%
• Increasing costs-18%
 New Product
Development Process
Marketing Business
Strategy
Analysis
Development
Concept Product
Development Development
and Testing

Idea Market
Screening Testing

Idea
Generation Commercialization
New Product
Development Process
 1.Idea Generation
Sources-Customers
Channel Intermediaries
Employees
Competitors
Top Mgmt.
Ad Agencies
Marketing Research Firms
Publications
• Techniques:
• Attribute Listing
• Forced relationship (Trigger Response)
• Morphological Analysis
• Need/Problem Identification
• Brain storming
• Synectics
• Checklist
2.Concept Generation &
Evaluation
Concept Development
& Testing
1.
1. Develop
DevelopProduct
ProductIdeas
Ideasinto
into
Alternative
AlternativeProduct
ProductConcepts
Concepts

2.
2. Concept
ConceptTesting
Testing--Test
Testthe
theProduct
Product
Concepts
Conceptswith
withGroups
GroupsofofTarget
TargetCustomers
Customers

3.
3. Choose
Choosethe
theBest
BestOne
One
• Idea vs Concept:

• Attribute+Benefit(S)=Product
• concept
Form Technology
Concept Development
• Techniques:
• 1.Attribute Analysis
• Dimensinal Analysis
• Check List
• Gap Analysis
• Trade off Analysis
• Benefit Analysis contd….
• Function Analysis
• Use Analysis
• Attribute Extension
• Relative Brand profile
• Pseudo product test
• System Analysis contd….
• Unique Properties
• Hierarchial Design
• Weakness
• Achille’s Hill
• 2.Relationship Analysis
 Consumer-Goods
Market Testing
Simulated
Simulated Controlled
Controlled
Test
Test Market
Market Test
Test Market
Market
Test AAfew
fewstores
storesthat
thathave
have
Testin
inaasimulated
simulated agreed
shopping environment
shopping environment agreedto
tocarry
carrynew
new
to products
productsfor
foraafee.
fee.
toaasample
sampleofof
Sales-
Sales- consumers.
consumers.
Wave
Wave Standard
Standard
Research
Research Test
Test Market
Market
Test
Testoffering
offeringtrail
trailto
to Full
aasample Fullmarketing
marketingcampaign
campaign
sampleofof in
inaasmall
smallnumber
numberof of
consumers
consumersin in representative
successive representativecities.
cities.
successive
periods.
periods.
Commercialization

Whom

When Product
Price
Place
Promotion
Where
 Adopter Categorization of
the Basis of
Relative Time of Adoption of
Innovations

34% 34%
Early Late
majority majority

2 1/2% 13 1/2% 16%

Innovators Early Laggards
adopters

Time of adoption of innovations