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Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
Product development strategy
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Product development strategy

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  • 1. 1visit: www.studyMarketing.orgNew ProductNew ProductDevelopmentDevelopmentStrategyStrategy
  • 2. 2visit: www.studyMarketing.orgYou can download this presentation at:www.studyMarketing.orgVisit www.studyMarketing.org for morepresentations on Marketing, Strategy,Innovation, and Branding
  • 3. 3visit: www.studyMarketing.orgKey Steps inKey Steps inNew ProductNew ProductDevelopmentDevelopment
  • 4. 4visit: www.studyMarketing.orgKey Steps inKey Steps inNew Product DevelopmentNew Product DevelopmentIdea GenerationProduct ScreeningConcept TestingBusiness & Financial AnalysisProduct DevelopmentTest MarketingCommercialization
  • 5. 5visit: www.studyMarketing.orgIdea GenerationIdea GenerationIdea generation is a continuous,systematic search for newproduct opportunities. It involvesdelineating sources of new ideasand methods for generating them.
  • 6. 6visit: www.studyMarketing.orgMethods for Generating IdeasMethods for Generating IdeasDimensional AnalysisDimensional Analysis lists all of the physicalcharacteristics of a product type. Having obtainedsuch a list, creativity can be triggered by askingquestions such as: "Why is the product thisway?“, "How could the product be changed?""How could the product be changed?"or "What would happen if one or more of thecharacteristics were removed?"
  • 7. 7visit: www.studyMarketing.orgProblem AnalysisProblem Analysis is a need-assessmenttechnique designed to develop aninventory of consumer problemsconsumer problems in aparticular product or service category andto serve as a basis for new product orservice ideas.
  • 8. 8visit: www.studyMarketing.orgBenefit Structure AnalysisBenefit Structure Analysis determineswhat specific benefits and characteristicsare desired by consumers within aparticular product or service category andidentifies perceived deficiencies in whatidentifies perceived deficiencies in whatis currently provided.is currently provided.
  • 9. 9visit: www.studyMarketing.orgScenarioScenarioAnalysisAnalysisidentifiesopportunities bycapitalizing onprojected futureenvironments andassociatedconsumer needs.
  • 10. 10visit: www.studyMarketing.orgProduct ScreeningProduct ScreeningAfter the firm identifies potentialproducts, it must screen them. Inproduct screening, poor, unsuitable, orotherwise unattractive ideas areweeded out from further actions.
  • 11. 11visit: www.studyMarketing.org• Today, many companies use a new-productscreening checklist for preliminary evaluation.• In it, firms list the new-product attributesconsidered most important and compare eachidea with those attributes.• The checklist is standardized and allows ideasto be compared.
  • 12. 12visit: www.studyMarketing.orgConcept testing presents theconsumer with a proposedproduct and measuresattitudes and intentions at thisearly stage of development.Concept TestingConcept Testing
  • 13. 13visit: www.studyMarketing.orgConcept testing is a quick andinexpensive way of measuringconsumer enthusiasm. It asks potentialconsumers to react to a picture, writtenstatement, or oral description of aproduct. This enables a firm todetermine initial attitudes prior toexpensive, time-consuming prototypedevelopment.
  • 14. 14visit: www.studyMarketing.orgBusiness and financial analysis for theremaining product concepts is much moredetailed than product screening.Business & Financial AnalysisBusiness & Financial Analysis
  • 15. 15visit: www.studyMarketing.org•Factors consideredFactors consideredin business analysisin business analysisstage :stage :• Demand projections• Cost projections• Competition• Required investment• Profitability
  • 16. 16visit: www.studyMarketing.orgProduct development converts aproduct idea into a physical form andidentifies a basic marketing strategy.Product DevelopmentProduct Development
  • 17. 17visit: www.studyMarketing.orgIt involves product construction,packaging, branding, productpositioning, and usage testing.
  • 18. 18visit: www.studyMarketing.orgTest marketing involvesplacing a product for sale inone or more selected areasand observing its actualperformance under theproposed marketing plan.Test MarketingTest Marketing
  • 19. 19visit: www.studyMarketing.orgThe purpose is to evaluate theproduct and pretest marketingefforts in a real setting prior to a full-scale introduction.
  • 20. 20visit: www.studyMarketing.orgRather than inquire aboutintentions, test marketingallows actual consumerbehavior to be observed.The firm can also learnabout competitive reactionsand the response of channelmembers.
  • 21. 21visit: www.studyMarketing.orgAfter testing is completed, the firm is ready tointroduce the product to its full target market. ThisThisis commercializationis commercialization and corresponds to theintroductory stage of the product life cycle.
  • 22. 22visit: www.studyMarketing.orgCommercializationinvolvesimplementing atotal marketingplan and fullproduction.
  • 23. 23visit: www.studyMarketing.orgKey Success FactorsKey Success Factorsin New Productin New ProductDevelopmentDevelopment
  • 24. 24visit: www.studyMarketing.orgAn investigation of new productpractices in 700 firms by Booz-Allen& Hamilton identified the existencethe existenceof common characteristicsof common characteristics incompanies that were successful atproduct innovation
  • 25. 25visit: www.studyMarketing.orgSuccessful companies are morecommitted to growth through newproducts developed internally.1. Operating Philosophy
  • 26. 26visit: www.studyMarketing.orgThey are more likely to have had a formalnew product process in place for a longerperiod of time than unsuccessful companies.They are more likely to have a strategic planthat includes a certain portion of companygrowth from new products.
  • 27. 27visit: www.studyMarketing.orgSuccessful companies are morelikely to house the new productorganization in R&D or engineeringand are more likely to allow themarketing and R&D functions tohave greater influence on the newproduct process.2. OrganizationalStructure
  • 28. 28visit: www.studyMarketing.orgExperience inintroducing newproducts enablescompanies toimprove newproductperformance.3. TheExperience Effect
  • 29. 29visit: www.studyMarketing.orgNew product developmentcosts conform to theexperience curve: The moreyou do something, the moreefficient you become atdoing it. This experienceadvantage stems from theacquisition of a knowledgeof the market and of thesteps required to develop anew product.
  • 30. 30visit: www.studyMarketing.orgSuccessful companies appear notonly to select a managementstyle appropriate to immediatenew product development needsbut also to revise and tailor thatapproach to changing newproduct opportunities4. Management Style4. Management Style
  • 31. 31visit: www.studyMarketing.orgAn empirical research byRobert CooperRobert Cooper found threekey factors that distinguishwinning projects from thelosers
  • 32. 32visit: www.studyMarketing.orgFactor 1: A High-Quality NewProduct ProcessFactor 2: A Clear and Well-Communicated New ProductStrategy for the BusinessFactor 3: Adequate Resourcesfor New Productsthree key factorsthree key factors for effectiveproduct development:
  • 33. 33visit: www.studyMarketing.orgFactor 1: A High-Quality NewProduct ProcessSome of these success factorssuccess factorsthat top performers build intotheir new product processesinclude:emphasizing the up-frontpredevelopment homework;building in the voice of thecustomer throughout
  • 34. 34visit: www.studyMarketing.orgFactor 1: A High-Quality NewProduct Processdemanding sharp, early productdefinitionhaving tough Go/Kill decisionpoints where projects really doget killedand highlighting quality ofexecution throughout
  • 35. 35visit: www.studyMarketing.orgthere are clear goals or objectives for thebusinesss total new product effort; forexample, what percentage of sales orprofits new products will contribute to thebusinessFactor 2: A Clear and Well-Communicated New ProductStrategy for the Business
  • 36. 36visit: www.studyMarketing.orgthere are clearly defined arenas—specified areas of strategic focus, suchas products, markets, or technologies—to give direction to the businessstotal new product effort
  • 37. 37visit: www.studyMarketing.orgthe role of new products in achievingthe businesss goals and the newproduct strategy for the business areclearly communicated to all whoneed to know
  • 38. 38visit: www.studyMarketing.org• In top-performing businesses,senior management has devotedthe necessary resources—peopleand money, marketing andtechnical—to achieve the businesssnew product objectivesFactor 3: Adequate Resourcesfor New Products
  • 39. 39visit: www.studyMarketing.org• R&D budgetsare adequate—judged to besufficient inlight of thebusinesss newproductobjectives
  • 40. 40visit: www.studyMarketing.org• the necessary people are in place andhave their time freed up for newproducts.
  • 41. 41visit: www.studyMarketing.orgSource of Reference:Robert Cooper, Winning at New Products: Acceleratingthe Process from Idea to Launch, Perseus Books Group.

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