Assignment 1 Marketing Management

20
Introducing New Market Offerings

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Chapter Questions

  • What challenges does a company face in developing new products and services?
  • What organizational structures and processes do managers use to oversee new-product development?
  • What are the main stages in developing new products and services?

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Copyright © 2012 Pearson Education 20-*

Chapter Questions

  • What is the best way to manage the new-product development process?
  • What factors affect the rate of diffusion and consumer adoption of newly launched products and services?

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Categories of New Products

New to the World

Additions

Improvements

Repositionings

Cost reductions

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Factors That Limit
New Product Development

  • 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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Table 201. Finding One Successful Product

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What is a Venture Team?

  • A venture team is a cross-functional group charged with developing a specific product or business.

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Criteria for Staffing Venture Teams

  • Desired team leadership style
  • Desired level of leader expertise
  • Team member skills and expertise
  • Level of interest in concept
  • Potential for personal reward
  • Diversity of team members

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Figure 20.1 New-Product Development Decision Process

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Ways to Find Great New Ideas

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More Ways to Find Great Ideas

  • Use iterative rounds with customers
  • Set up a keyword search to scan trade publications
  • Treat trade shows as intelligence missions
  • Have employees visit supplier labs
  • Set up an idea vault

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Drawing Ideas from Customers

  • Observe customers using product
  • Ask customers about problems with products
  • Ask customers about their dream products
  • Use a customer advisory board or a brand community of enthusiasts to discuss product

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Idea Generation:
Creativity Techniques

  • Attribute listing: list the attributes of an object then try to modify
  • Forced relationships: list several ideas and consider how each relates to the others
  • Morphological analysis: involves starting with a problem, and then identifying the dimensions, the medium, and the power source
  • Reverse assumption analysis: list all the normal assumptions about an entity and then reverse them
  • New contexts: instead of adopting the logical, normal manner of looking at a challenge, you reverse it and think about opposite ideas.
  • Mind mapping: is intended for generating as many ideas as possible in relation to a specific topic

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Lateral Marketing

  • Gas stations + food
  • Cafeteria + Internet
  • Cereal + snacking
  • Candy + toy
  • Audio + portable

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Figure 20.2 Forces Fighting
New Ideas

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Figure 20.3 Product and
Brand Positioning

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Concept Testing

  • Communicability and believability
  • Need level
  • Gap level
  • Perceived value
  • Purchase intention
  • User targets, purchase occasions, purchasing frequency

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Figure 20.6 Product Life-Cycle Sales for Three Types of Products

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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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Consumer Goods Market Testing

  • Sales-Wave Research
  • Simulated Test Marketing
  • Controlled Test Marketing
  • Test Markets

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Test Market Decisions

  • How many test cities?
  • Which cities?
  • Length of test?
  • What information to collect?
  • What action to take?

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Timing of Market Entry

  • First entry
  • Parallel entry
  • Late entry

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What is Adoption?

Adoption is an individual’s decision to become a regular user of a product.

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Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption

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Figure 20.7 Adopter Categorization on the Basis of Relative time of Adoption

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Characteristics of an Innovation

  • Relative advantage
  • Compatibility
  • Complexity
  • Divisibility
  • Communicability

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For Review

  • What challenges does a company face in developing new products and services?
  • What organizational structures and processes do managers use to oversee new-product development?
  • What are the main stages in developing new products and services?

Copyright © 2012 Pearson Education 20-*

Copyright © 2012 Pearson Education 20-*

*

For Review

  • What is the best way to manage the new-product development process?
  • What factors affect the rate of diffusion and consumer adoption of newly launched products and services?

Copyright © 2012 Pearson Education 20-*

Copyright © 2012 Pearson Education 20-*

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