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.
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?"
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.
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.
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.
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.
12visit: www.studyMarketing.orgConcept testing presents theconsumer with a proposedproduct and measuresattitudes and intentions at thisearly stage of development.Concept TestingConcept Testing
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.
14visit: www.studyMarketing.orgBusiness and financial analysis for theremaining product concepts is much moredetailed than product screening.Business & Financial AnalysisBusiness & Financial Analysis
15visit: www.studyMarketing.org•Factors consideredFactors consideredin business analysisin business analysisstage :stage :• Demand projections• Cost projections• Competition• Required investment• Profitability
16visit: www.studyMarketing.orgProduct development converts aproduct idea into a physical form andidentifies a basic marketing strategy.Product DevelopmentProduct Development
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
19visit: www.studyMarketing.orgThe purpose is to evaluate theproduct and pretest marketingefforts in a real setting prior to a full-scale introduction.
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.
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.
22visit: www.studyMarketing.orgCommercializationinvolvesimplementing atotal marketingplan and fullproduction.
23visit: www.studyMarketing.orgKey Success FactorsKey Success Factorsin New Productin New ProductDevelopmentDevelopment
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
25visit: www.studyMarketing.orgSuccessful companies are morecommitted to growth through newproducts developed internally.1. Operating Philosophy
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.
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
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.
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
31visit: www.studyMarketing.orgAn empirical research byRobert CooperRobert Cooper found threekey factors that distinguishwinning projects from thelosers
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:
33visit: www.studyMarketing.orgFactor 1: A High-Quality NewProduct ProcessSome of these success factorssuccess factorsthat top performers build intotheir new product processesinclude:emphasizing the up-frontpredevelopment homework;building in the voice of thecustomer throughout
34visit: www.studyMarketing.orgFactor 1: A High-Quality NewProduct Processdemanding sharp, early productdefinitionhaving tough Go/Kill decisionpoints where projects really doget killedand highlighting quality ofexecution throughout
35visit: www.studyMarketing.orgthere 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
36visit: www.studyMarketing.orgthere are clearly defined arenas—specified areas of strategic focus, suchas products, markets, or technologies—to give direction to the businessstotal new product effort
37visit: www.studyMarketing.orgthe role of new products in achievingthe businesss goals and the newproduct strategy for the business areclearly communicated to all whoneed to know
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
39visit: www.studyMarketing.org• R&D budgetsare adequate—judged to besufficient inlight of thebusinesss newproductobjectives
40visit: www.studyMarketing.org• the necessary people are in place andhave their time freed up for newproducts.
41visit: www.studyMarketing.orgSource of Reference:Robert Cooper, Winning at New Products: Acceleratingthe Process from Idea to Launch, Perseus Books Group.