Factors associated w/ new prdct success
1. prdct superiority & high quality.
2. Eco adv to user.
3. Overall company & proj fit.
4. Identified mkt need, growth & size.
5. Competitive opportunity or niche.
6. Excell in CS.
New prdct development process
1. Idea generation.
Most ideas do not become prdcts.
Idea generation, the least expensive step in new prdct development, requires recognizing available idea sources.
New prdct development must focus on meeting C’s needs.
Top mngmnt support is critical.
2. Idea screening. (Usually it’s a group effort)
Ppl who in charge of the idea screening should be very experienced, and should find the balance btw type 1 error (never kill a good idea) and type 2 error (never let a bad idea go by)
Risk categories:
1. Strategic risk: does the prdct meet the genuine need.
2. Mkt risk: the risk that a new prdct won’t meet a mkt need in a value-added, differentiated way.
3. Internal risk: the risk that a new prdct won’t be developed w/I the desired time & budget.
Firms should not hastily in discounting new prdct ideas because of a lack of resources or expertise. Instead, they should consider forming joint or strategic alliances with other firms.
Ideas that appear to hv adequate profit potential and offer the firm a competitive adv in the mkt should be accepted for further study.
3. Proj planning (Biz analysis)
Analyze the proposal in terms of production, MKT, financial & competitive factors.
Establish a development budget w/ preliminary MKT & tech research.
Create a “rough form” prdct.
Create a proj plan w/ estimated costs.
Review the proj plan w/ top mngmnt.
4. Prdct development.
Evaluate the prdct from the viewpoint of engineering, manufacturing, finance & MKT.
Consider further research & testing.
Produce a finished prdct & “ mkt test it” (diff from test MKT)
A development, report to mngmnt is prepared.
5. Test MKT.
Goal is to evaluate & adjust if necessary the marketing strategy to be used in the MKT mix.
4P’s MKT mix.
6. Commercialization.
The firm commits to introducing the prdct into the marketplace.
Emphasis is placed on org. structure & mngmnt talent needed to implement the MKT strategy.
Prdct Life Cycle
1.
But what is new?? 1 • Repositioning • Innovations • Line Extensions • “Me Too” Products New to World New to Company 2 Markets Existing Existing New Market Penetration Market Development New Product Development (Diversification) Products New 3 Opportunity Identification Design Testing Introduction Life Cycle Management 4 Product Design Forecasting 5 Product design using conjoint analysis Forecasting the pattern of new product adoptions (Bass Diffusion Model) 6…
1946-1964, they never age (stay young, reward time); clog the upward mobility pipeline in employment (complained by the Xers that hold the positions to much) children, teens, tweens (8-14): feel-good products. - Gender: metrosexual. Family Life Cycle: seniors( resort condominiums and golf products) Income and Social Class: but many consumers buy, not according to where they actually fall in that framework, but rather according to the image they wish to portray. Ethnicity(culture differences…
Objective Outline 3 Types of Buying Decision Behavior The Buyer Decision Process List and define the major types of buying decision behavior and the stages in the buyer decision process. The buyer decision Process for New Products 4 Describe the adoption and diffusion process for new products. Model of Consumer Behavior Consumer Buyer Behavior Consumer buyer behavior refers to the buying behavior of final consumers ─ individuals and households that buy goods and services for personal consumption. All…
different brand names for the same product across national boundaries. d. using the same brand for the original product and all subsequent product extensions. e. using a current brand name to enter a different product class. C 18. The diffusion process curve shows: a. the relationship of the product life cycle to sales. b. how price changes as different groups adopt a product. c. that different groups adopt new products at different times. d…
Refers to what those people in society believe, do, use, or produce Describe the concept of society. A large number of living people who lead a common life interacting in various ways according to a pattern of social organization and usually in a defined spatial area Describe the concept of subculture. Focuses more on narrowly on the way of life (social heritage) of some particular category of people in a complex society. This may be social class, a regional population, a religious, radical, or…
to develop a method of baking pizza that enables pizzas to be baked in 10 minutes rather than the standard 20 minutes during the late 1980s a potato chip company introduces a line of its potato chips with a new type of seasoning. a major motion picture studio releases a new 3D movie. a tire manufacturer develops a tire that re-inflates itself instantly when it is punctured Instructor Explanation: Chapter 3 Points Received: 4 of 4 Comments: Question 2. Question…
Herbal Cosmetic Products in Thailand Rojanadilok, Thanisorn*, Bunchapattanasakda Chanchai School of Management Shinawatra University, Thailand *lovefirstsign@hotmail.com Abstract: This research investigated the factors that influence marketing strategies of imported herbal cosmetic products in Thailand. The study is qualitative research using in - depth interview to collect primary data and use content analysis to analyze the obtained data. The facial herbal cosmetics products using in this…
User developed innovations are a major feedstock for products commercialized by manufacturers. User innovation is a “good thing” that increases social welfare. User innovation is steadily increasing as enabling computing and communication technologies improve. Need for organizations to implement this Technology…
Creating Sustainable Change: A new paradigm in Project Management Ron Schipper Senior Consultant, Van Aetsveld Project and Change management, Amersfoort, the Netherlands Harry Rorije Principal Consultant, Van Aetsveld Project and Change management, Amersfoort, the Netherlands Gilbert Silvius 1 Professor of Business, ICT and Innovation, University of Applied Sciences, Utrecht, the Netherlands Principal Consultant, Van Aetsveld Project and Change management, Amersfoort, the Netherlands Abstract…
want in a new product that might make them switch from an old product * 4Ps (1) Product: value= creating (2) Price: value= capturing (3) Place= delivering (4) Promotion= communicating * Product: Creating Value the fundamental purpose of marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs * Price: Capturing Value Price is everything a buy gives up (money, time, energy) in exchange for the product; the key…