(Kotler, Chap.19-1) What Challenges Does A Company Face In Developing New Products And Services?

2,639 views
2,182 views

Published on

(Kotler, Chap.19-1) What Challenges Does A Company Face In Developing New Products And Services?

Published in: Marketing, Business, Career
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,639
On SlideShare
0
From Embeds
0
Number of Embeds
95
Actions
Shares
0
Downloads
1
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

(Kotler, Chap.19-1) What Challenges Does A Company Face In Developing New Products And Services?

  1. 1. What Challenges Does A Company Face In Developing New Products And Services? Kotler, Chapter 19 Prof. Sameer Mathur, Ph.D. Prof. Prem P. Dewani, Ph.D.
  2. 2. Sameer Mathur BuddingMarkets.com IIM, Lucknow, Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 BTech, Indian Institute of Technology, Roorkee 1995 – 1999 2 Prem Prakash Dewani IIM, Lucknow, Marketing Professor 2013 – Ph.D. (Marketing) 2007 – 2013
  3. 3. Contents 3 What is New Product Development? Challenges to New Product Development Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  4. 4. 4 What is New Product Development? In business and engineering, new product development is the complete process of bringing a new product to market. Marketing Management | Kotler and Keller
  5. 5. 5 Challenges to New Product Development Global competition  Time  Market potential  Technological change Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  6. 6. 6 Challenges to New Product Development Distribution  New features  Price  Promotion Marketing Management | Kotler and Keller
  7. 7. 7 Price Setting the right price of the product before introducing it in the market is also a challenge for the organization. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  8. 8. 8 Price  MICROMAX introduced its new model “canvas” which is not only unique from its other products but is also economical in meeting the Indian customer needs. Marketing Management | Kotler and Keller
  9. 9. 9 Price  The ultimate success of the product was its price which not only ensured the longevity of the product but also opened gamut of opportunities for the company. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  10. 10. 10 Market Potential Facebook acquired Instagram for $ 1 billion. Marketing Management | Kotler and Keller
  11. 11. 11 Market Potential Knowing your future competitors will help you to develop a strategy to retain your competitive advantage. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  12. 12. 12 Market Potential Facebook saw Instagram as its fastest growing competitor and decided to take control before it became a problem for Facebook. Marketing Management | Kotler and Keller
  13. 13. 13 Time  The companies today are facing time as one of the critical challenges in new product challenge. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  14. 14. 14  Introducing the new product at the right time reduces the ambiguity about the failure of the product. Time Marketing Management | Kotler and Keller
  15. 15. 15 Time  Spanish apparel brand ZARA takes just two weeks to create a new product line out of high street fashion design and ship it to stores making it the world’s most popular “fast fashion” brand. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  16. 16. 16 Global Competition  Global competition is often a major factor impacting the challenges of new product development. Marketing Management | Kotler and Keller
  17. 17. 17 Global Competition  Since the playing field is large and diverse, it may be very difficult for companies to gather intelligence on competitors. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  18. 18. 18 Global Competition M&M in 2009 launched the Xylo, a model that finally achieved the right mix of design, power, and price. Not only it was a performer; it cost less than its rivals. Marketing Management | Kotler and Keller
  19. 19. 19 New Features Adding new features can increase your overall product value and consequently, increase your market share. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  20. 20. 20 New Features What makes new product development different from product development? While new product development can be revolutionary, product development (i.e. adding new features) is an evolutionary process. Marketing Management | Kotler and Keller
  21. 21. 21 New Features Gmail is one of many Google products that illustrate this point. Once Google mastered the end product, the search giant was able to add new features to increase the products overall value. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  22. 22. 22 New Features For instance, enables users to make large changes, such as adding a customized inbox skin or SMS through Gmail chat, and small adjustments, such as YouTube e-mail previews. Marketing Management | Kotler and Keller
  23. 23. 23 Distribution Who's going to sell the product? Can you use the same distribution channels you currently use? Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  24. 24. 24 Distribution Can you use the same independent representatives or sales force? Is there sufficient sales potential in the new product to convince a distributor, retailer, or agent to take on the new line? Marketing Management | Kotler and Keller
  25. 25. 25 Distribution There are significant up-front selling costs involved in introducing new products. Everyone in the channel wants some assurance that the investment of time and money will be recovered. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  26. 26. 26 Distribution Taking the first step towards its long-awaited entry into India, US coffee chain Starbucks has signed a pact with Tata group firm Tata Coffee for a possible alliance that could include retail operations and sourcing. Marketing Management | Kotler and Keller
  27. 27. 27 Promotion Promoting a new product in the new market or in the current market is the job of every marketer and the utmost requirement for the longevity of the product in the market. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  28. 28. 28 Promotion Firms who hardly promote their product are rarely recognized by the market and thus remain a mystery product for the consumers. Marketing Management | Kotler and Keller
  29. 29. 29 Promotion Rapid advancement of technology may be considered by many to be among the top challenges of new product development. Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  30. 30. 30 Technological Change Starting from the first Macintosh to the iPod, iPad, iPhone , the list is still growing and Apple has time again proved that innovation is the ultimate success of a new product. Marketing Management | Kotler and Keller
  31. 31. References 31 • http://www.cbii.com/images/people-handshake.jpg • http://www.personalitytutor.com/files/2012/02/How-To-Be-Positive.jpg • http://fc01.deviantart.net/fs50/f/2009/260/c/9/Walking_alone_by_al_fahad515.jpg • http://pad1.whstatic.com/images/thumb/6/67/Train-Someone-to-Do-Your-Job-Step-6.jpg/550px-Train-Someone-to-Do-Your-Job-Step-6.jpg • http://work.chron.com/DM-Resize/photos.demandstudios.com/getty/article/214/154/dv1080023.jpg?w=600&h=600&keep_ratio=1 • http://img.webmd.com/dtmcms/live/webmd/consumer_assets/site_images/article_thumbnails/features/_2012/07_2012/what_does_your_smile_say_ab out_you_features/375x321_what_does_your_smile_say_about_you_features.jpg • http://meganandtimmy.com/wp-content/uploads/2011/11/cant-remember.jpg • http://ronepraisehouston.files.wordpress.com/2011/09/86490082.jpg • http://blog.logmycalls.com/Portals/155740/images/argument-sales-marketing.jpg • http://lookingtobusiness.com/wp-content/uploads/2009/12/Sales-Argument.gif • http://www.european-coatings.com/var/ezflow_site/storage/images/european-coatings/home/markets-companies/nubiola-expands-its-distribution-agreement- with-keyser-mackay/508595-1-eng-GB/Nubiola-expands-its-distribution-agreement-with-Keyser-Mackay.jpg Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  32. 32. Image Credits 32 • http://llbartlett.typepad.com/.a/6a00d8345202e069e2015435652465970c-800wi • http://3.bp.blogspot.com/-3pnLJuGkdp0/UR36z_OCmXI/AAAAAAAAATk/Fk4w7xY6sIU/s1600/complaining1.jpg • http://beniciaherald.files.wordpress.com/2010/02/adam-jennydress.jpg • http://comfortmemorials.com/site1/wp-content/uploads/2013/03/Comfort_1.jpg • http://blogs-images.forbes.com/susantardanico/files/2013/01/dreamstime_m_85361844.jpg • http://www.healthguidance.org/hgimages/16451Criticizing.jpg • http://commonsenseatheism.com/wp-content/uploads/2010/12/criticizing-hitchens.png • http://careers.queensu.ca/students/services/advising/advising.jpg • http://wp.streetwise.co/wp-content/blogs.dir/2/files/2013/03/leaders-wanted.gif • http://www.uh-72a.com/images/the-team/Our-Team_5-31-2013.jpg • http://pad1.whstatic.com/images/thumb/4/44/Impress-Someone-on-a-First-Date-Step-10-Version-2.jpg/550px-Impress-Someone-on-a- First-Date-Step-10-Version-2.jpg • http://www.sense.org.uk/sites/default/files/man_on_mens_shoulders_304r.jpg • http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2012/10/16/1350397525335/business-goals-010.jpg Prof. Sameer Mathur & Prof. Prem P. Dewani, www.BuddingMarkets.com
  33. 33. Sameer Mathur BuddingMarkets.com IIM, Lucknow, Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 BTech, Indian Institute of Technology, Roorkee 1995 – 1999 33 Prem Prakash Dewani IIM, Lucknow, Marketing Professor 2013 – Ph.D. (Marketing) 2007 – 2013
  34. 34. Over 1 Million views from more than 100 countries Top 1% most viewed Prof. Sameer Mathur Over 250 presentations on Marketing www.BuddingMarkets.com

×