Ch20 - New Market Offerings

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Ch20 - New Market Offerings

  1. 1. INTRODUCING NEW MARKET OFFERINGS Ralph W. Tanco Ateneo Graduate School of Business Top 10 Concepts
  2. 2. Outline: New Market Offerings: <ul><li>Ways of introducing New Products </li></ul><ul><li>Challenges in New-Product Development </li></ul><ul><li>Most important success factor. (What?) </li></ul><ul><li>Reasons for New Product Failure </li></ul><ul><li>Organizational arrangements for product development </li></ul>
  3. 3. Outline: New Market Offerings <ul><li>Budgeting for a new product development </li></ul><ul><li>Organizing New-Product Development </li></ul><ul><li>Managing the development process </li></ul><ul><li>Consumer Adoption </li></ul><ul><li>Characteristics of innovation </li></ul>
  4. 4. Concept 1: Ways of introducing new products <ul><li>Make them </li></ul><ul><li>Buy them </li></ul>
  5. 5. <ul><li>Innovation Imperative </li></ul><ul><li>Must have constant improvement and innovations </li></ul><ul><li>Incremental innovation </li></ul><ul><li>Tweaking existing products for new customers </li></ul>Concept 2: Challenges in a new product development
  6. 6. Concept 3: Most important success factor <ul><li>A unique and superior product </li></ul>
  7. 7. Concept 4: Reasons for New Product Failure <ul><li>Shortage of important ideas in some areas </li></ul><ul><li>Fragmented markets </li></ul><ul><li>Social and governmental constraints </li></ul><ul><li>Cost of development </li></ul><ul><li>Capital shortages </li></ul><ul><li>Shorter required development time </li></ul><ul><li>Shorter prduct life cycles </li></ul>
  8. 8. Concept 5: Organizational arrangements <ul><li>Commonly uses customer-driven engineering </li></ul>
  9. 9. Concept 6: Budgeting for a new product <ul><li>Financing as many projects as possible </li></ul><ul><li>Conventional percentage-of-sales figure </li></ul><ul><li>Spend what the competition spends </li></ul><ul><li>Working backwards </li></ul>
  10. 10. Concept 7: Organizing New-Product Development <ul><li>Use of new product managers </li></ul><ul><li>Use of stage gate system </li></ul>
  11. 11. Concept 8: Managing the development process <ul><li>Idea Generation </li></ul><ul><li>Idea Screening </li></ul><ul><li>Concept development and testing </li></ul><ul><li>Marketing strategy development </li></ul><ul><li>Business analysis </li></ul>
  12. 12. Concept 8: Managing the development process <ul><li>Product development </li></ul><ul><li>Market testing </li></ul><ul><li>Commercialization </li></ul>
  13. 13. Concept 9: Consumer adoption <ul><li>Awareness </li></ul><ul><li>Interest </li></ul><ul><li>Evaluation </li></ul><ul><li>Trial </li></ul><ul><li>Adoption </li></ul>
  14. 14. Concept 10: Characteristics of the innovation <ul><li>Relative advantage </li></ul><ul><li>Compatibility </li></ul><ul><li>Complexity </li></ul><ul><li>Divisibility </li></ul><ul><li>Communicability </li></ul>
  15. 15. Summary: New Market Offerings: <ul><li>Two ways to introduce the product </li></ul><ul><li>Obstacles in introducing new products </li></ul><ul><li>The golden rule of success. </li></ul><ul><li>Reasons for New Product Failure </li></ul><ul><li>The ideal organizational structure </li></ul>
  16. 16. Summary: New Market Offerings <ul><li>Ways of budgeting for new products </li></ul><ul><li>Organizing New-Product Development </li></ul><ul><li>Managing the development process </li></ul><ul><li>Consumer Adoption </li></ul><ul><li>Characteristics of innovation </li></ul>
  17. 17. My Conclusion: New Market Offerings <ul><li>Not easy to create new Products </li></ul><ul><li>You have to be creative </li></ul><ul><li>Resourceful, cautious </li></ul><ul><li>And ready to fail! </li></ul>

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