New product innovation ppt


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New product innovation ppt bec bagalkot mba 2009

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New product innovation ppt

  1. 1. New Product Innovation
  2. 2. Agenda Product Development Market Research Concept Testing Prototype Development Market Testing Product Launch Discussion
  3. 3. Why New Products? New product development is critical to long- term success Approximately one-third of the revenue a business generates is coming from products they did not sell five years ago Changing environment creates new demands and needs
  4. 4. Product Development Must be alert to quickly develop opportunities Focus on markets or product categories consistent with organization’s objectives, resources, capabilities and strengths Securing a competitive advantage
  5. 5. Industrial New Product Ideas Company sources other than R&D 36.2% Analysis of the competition 27.0% Research & Development 24.3% Product users 15.8% Supplier suggestions 12.5% Product user research 10.5% Published information 7.9%
  6. 6. New Products A way of getting new and keeping old customers Effective way of obtaining a competitive advantage Source of growth and excitement
  7. 7. New Product Categories New to the world products New product lines Product line extensions Improvements and revisions to existing products Repositionings Cost reductions
  8. 8. Product Development Process Product Launch Test Marketing Prototype Development Concept TestingMarket research andOpportunity scan
  9. 9. Marketing Very important to product development success Key to successful marketing is imaginative, effective, creative communication Find a need and fill it. Mutually beneficial exchange relationships Non-profit organizations have sometimes difficult task
  10. 10. Marketing Strategies Increase the number of customers Increase the average transaction Increase the frequency of repurchase
  11. 11. Marketing Concepts Consumer orientation Customer service orientation Profit orientation Society
  12. 12. Marketing Mix Price PlacementProduct Promotion
  13. 13. Market Research Who is my target audience? Are there enough members of this target group to make the business worthwhile? How large is the potential market and how much of that potential market can I capture? Who is my competition and what would make someone choose my product over their current?
  14. 14. Market Opportunity and ThreatsSocietal Focus Economic Realities •GNP•Population Shifts •Disposable Income•Values •Discretionary Income•Attitudes•Competition•TrendsTechnologicalDevelopment•Advance in Legal & Regulatorytechnology Condition•Market receptiveness •Lawsto technology •Regulations
  15. 15. Market PlacementIdentify target markets  Size and growth potential  Ability and ease of reaching segment  Good fit with organizational objectives  Greatest revenue generation with least investment
  16. 16. Market PlacementDetermine opportunity  Segment size  Annual usage potential  Anticipated annual growth rate  Margin  Value in useEvaluate competition  Strengths/Limitations  Implications
  17. 17. Market Research – Pricing Strategies Goal is to achieve a target profit Can you hold a product’s manufacturing costs down to less than 25% of its perceived value? Estimating manufacturing costs  Obtain price quotes from several suppliers
  18. 18. Concept TestingDetermine  Critical success factors  Financial objectives  Marketing mix strategies  Product, Pricing, Promotion, Placement  Marketing plan initiatives  Activity, Budget, Timing
  19. 19. Prototype and Test MarketingSurvey end-users  Do you prefer this product over your current product?  Does this product meet the need you thought it would?  Does the way the product works provide an important benefit?
  20. 20. Promotion and Product Launch Publicity  Trade journals  Conferences Personal selling Word of mouth
  21. 21. Reasons For New Product Failures Poor marketing research Technical problems Insufficient marketing effort Bad timing
  22. 22. Marketing PlanAudit  Challenge and refine assumptions from current plan  Evaluate success for input into next year’s plan  Revise plan for new year incorporating marketplace learnings, marketing insights and current plan successes
  23. 23. Summary New product development drives growth Market research is critical to the success of a new product launch Market research is a continuous process as customer needs, your business and the environment changes