Introducing New Market Offerings Mikhail Tenazas
Outline <ul><li>Challenges in developing new products </li></ul><ul><li>Organizational structures and processes </li></ul>...
Challenges in New-Product Development <ul><li>Types of New Products </li></ul><ul><ul><li>New-to-the-world </li></ul></ul>...
Challenges in New-Product Development <ul><li>1. New-Product Success </li></ul><ul><ul><li>Incremental innovation </li></u...
Challenges in New-Product Development <ul><li>2. New-Product Failure </li></ul><ul><ul><li>Shortage of ideas </li></ul></u...
<ul><li>“ It is not just OK to fail; it is imperative to fail” </li></ul><ul><ul><li>Kotler: Dogster.com </li></ul></ul><u...
3. Organizational Arrangements <ul><li>Budgeting </li></ul><ul><li>Organizing </li></ul><ul><li>Internal changes: customer...
Managing the Development Process Idea Generation: Is the idea worth considering?
Managing the Development Process <ul><li>4. Idea Generation </li></ul><ul><ul><li>Lateral marketing </li></ul></ul><ul><ul...
Managing the Development Process Idea Generation: Is the idea worth considering? Idea Screening: Is the product idea compa...
Managing the Development Process: <ul><li>5. Concept Development and Testing </li></ul><ul><ul><li>Product idea </li></ul>...
<ul><ul><li>Concept Development and Testing </li></ul></ul><ul><ul><ul><li>Kotler: </li></ul></ul></ul><ul><ul><ul><ul><li...
<ul><li>Concept Development and Testing </li></ul><ul><ul><li>Local: Clear vs Head and Shoulders </li></ul></ul><ul><ul><u...
Managing the Development Process Yes Yes Yes Yes No No No No Idea Generation: Is the idea worth considering? Idea Screenin...
Managing the Development Process Yes Yes Yes Yes No No No No Idea Generation: Is the idea worth considering? Idea Screenin...
Managing the Development Process Yes No Business analysis: Will this product meet our profit goal? Product development: Ha...
Managing the Development Process <ul><li>6.  Product Development </li></ul><ul><ul><li>Quality function deployment </li></...
Managing the Development Process Yes Yes No No Business analysis: Will this product meet our profit goal? Product developm...
Managing the Development Process <ul><li>7.  Market Testing </li></ul><ul><ul><li>Consumer-Goods Market Testing </li></ul>...
<ul><li>Market Testing </li></ul><ul><ul><li>Kotler: General Mills’ Toast-Ems toaster pastries, Colgate-Palmolive </li></u...
Managing the Development Process Business analysis: Will this product meet our profit goal? Product development: Have we g...
Managing the Development Process <ul><li>8.  Commercialization </li></ul><ul><ul><li>When (Timing) </li></ul></ul><ul><ul>...
<ul><li>Kotler: Apple iPod </li></ul>
<ul><li>Kotler: Apple iPod </li></ul><ul><li>Local: Clear Shampoo </li></ul><ul><li>Medical: Medical City, Belo Medical Gr...
9. Factors Influencing the Adoption Process <ul><li>Readiness and Personal Influence </li></ul>
Factors Influencing the Adoption Process <ul><li>Readiness and Personal Influence </li></ul><ul><ul><li>Kotler: Nike skate...
10. Characteristics of the Innovation <ul><li>Relative advantage </li></ul><ul><li>Compatibility </li></ul><ul><li>Complex...
<ul><li>Kotler: TiVo, or PVRs </li></ul><ul><li>Local: iPhone, preventive supplements </li></ul><ul><li>Medical: Laparosco...
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Marketing presentation

  1. 1. Introducing New Market Offerings Mikhail Tenazas
  2. 2. Outline <ul><li>Challenges in developing new products </li></ul><ul><li>Organizational structures and processes </li></ul><ul><li>Main stages in new product development </li></ul><ul><li>Managing the development process </li></ul><ul><li>Factors affecting adoption process </li></ul>
  3. 3. Challenges in New-Product Development <ul><li>Types of New Products </li></ul><ul><ul><li>New-to-the-world </li></ul></ul><ul><ul><li>New product lines </li></ul></ul><ul><ul><li>Minor additions or improvements </li></ul></ul><ul><ul><li>Repositioning </li></ul></ul>Innovation
  4. 4. Challenges in New-Product Development <ul><li>1. New-Product Success </li></ul><ul><ul><li>Incremental innovation </li></ul></ul><ul><ul><ul><li>Kotler: Southwest Airlines </li></ul></ul></ul><ul><ul><ul><li>Local: PLDT, Cebu Pacific, Pizza Hut Bistro </li></ul></ul></ul><ul><ul><ul><li>Medical: Satellite clinics, Belo Medical Group </li></ul></ul></ul>
  5. 5. Challenges in New-Product Development <ul><li>2. New-Product Failure </li></ul><ul><ul><li>Shortage of ideas </li></ul></ul><ul><ul><li>Fragmented markets </li></ul></ul><ul><ul><li>Social and governmental constraints </li></ul></ul><ul><ul><li>Cost of development </li></ul></ul><ul><ul><li>Capital shortages </li></ul></ul><ul><ul><li>Shorter required development time </li></ul></ul>
  6. 6. <ul><li>“ It is not just OK to fail; it is imperative to fail” </li></ul><ul><ul><li>Kotler: Dogster.com </li></ul></ul><ul><ul><li>Local: IntelKinetic, ElectroLux </li></ul></ul><ul><ul><li>Medical: Evista, Strattera </li></ul></ul>
  7. 7. 3. Organizational Arrangements <ul><li>Budgeting </li></ul><ul><li>Organizing </li></ul><ul><li>Internal changes: customer-driven engineering </li></ul><ul><ul><li>Kotler: Xerox, Whirlpool Corporation </li></ul></ul><ul><ul><li>Local: McDonald’s </li></ul></ul><ul><ul><li>Medical: Medical City </li></ul></ul>
  8. 8. Managing the Development Process Idea Generation: Is the idea worth considering?
  9. 9. Managing the Development Process <ul><li>4. Idea Generation </li></ul><ul><ul><li>Lateral marketing </li></ul></ul><ul><ul><ul><li>E.g. Gas station stores = gas stations + food </li></ul></ul></ul><ul><ul><ul><ul><li>Cyber cafes = cafeteria + internet </li></ul></ul></ul></ul><ul><ul><li>Open innovation </li></ul></ul><ul><ul><ul><li>Tapping external sources </li></ul></ul></ul><ul><ul><ul><li>Kotler: Mr. Clean </li></ul></ul></ul><ul><ul><ul><li>Local: </li></ul></ul></ul><ul><ul><ul><li>Medical: </li></ul></ul></ul>
  10. 10. Managing the Development Process Idea Generation: Is the idea worth considering? Idea Screening: Is the product idea compatible with company objectives, strategies, and resources? Concept Development and Testing: Can we find a good concept consumers say they would try? DROP
  11. 11. Managing the Development Process: <ul><li>5. Concept Development and Testing </li></ul><ul><ul><li>Product idea </li></ul></ul><ul><ul><li>Product concept </li></ul></ul><ul><ul><ul><li>Who will use it? </li></ul></ul></ul><ul><ul><ul><li>Benefits? </li></ul></ul></ul><ul><ul><ul><li>When will they use it? </li></ul></ul></ul>
  12. 12. <ul><ul><li>Concept Development and Testing </li></ul></ul><ul><ul><ul><li>Kotler: </li></ul></ul></ul><ul><ul><ul><ul><li>Product idea: powder to add to milk </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Product concept: Instant breakfast drink for adults </li></ul></ul></ul></ul>Quick Inexpensive Slow Expensive Product-Positioning Map (Breakfast Market) <ul><ul><ul><ul><li>Perceptual mapping </li></ul></ul></ul></ul>Bacon and eggs Cold cereal Pancakes Hot cereal Instant breakfast
  13. 13. <ul><li>Concept Development and Testing </li></ul><ul><ul><li>Local: Clear vs Head and Shoulders </li></ul></ul><ul><ul><ul><li>Product-positioning: </li></ul></ul></ul><ul><ul><ul><ul><li>No dandruff, no hairfall </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Soft and silky hair </li></ul></ul></ul></ul><ul><ul><li>Medical: Pain relievers </li></ul></ul>Brand-Positioning Map for Pain Relievers
  14. 14. Managing the Development Process Yes Yes Yes Yes No No No No Idea Generation: Is the idea worth considering? Idea Screening: Is the product idea compatible with company objectives, strategies, and resources? Concept Development and Testing: Can we find a good concept consumers say they would try? DROP Marketing Strategy Development: Can we find a cost-effective, addordable marketing strategy?
  15. 15. Managing the Development Process Yes Yes Yes Yes No No No No Idea Generation: Is the idea worth considering? Idea Screening: Is the product idea compatible with company objectives, strategies, and resources? Concept Development and Testing: Can we find a good concept consumers say they would try? DROP Marketing Strategy Development: Can we find a cost-effective, addordable marketing strategy?
  16. 16. Managing the Development Process Yes No Business analysis: Will this product meet our profit goal? Product development: Have we got a technically and commercially sound product? DROP
  17. 17. Managing the Development Process <ul><li>6. Product Development </li></ul><ul><ul><li>Quality function deployment </li></ul></ul><ul><ul><li>Development of physical prototypes </li></ul></ul><ul><ul><li>Kotler: Boeing 777 </li></ul></ul><ul><ul><li>Local: McRice Burger </li></ul></ul><ul><ul><li>Medical: Cloning, stem cell therapy </li></ul></ul>Desired customer attributes Engineering attributes
  18. 18. Managing the Development Process Yes Yes No No Business analysis: Will this product meet our profit goal? Product development: Have we got a technically and commercially sound product? Market Testing Have product sales met expectations? DROP
  19. 19. Managing the Development Process <ul><li>7. Market Testing </li></ul><ul><ul><li>Consumer-Goods Market Testing </li></ul></ul><ul><ul><ul><li>How many test cities? </li></ul></ul></ul><ul><ul><ul><li>Which cities? </li></ul></ul></ul><ul><ul><ul><li>Length of test? </li></ul></ul></ul><ul><ul><ul><li>What information to collect? </li></ul></ul></ul><ul><ul><ul><li>What action to take? </li></ul></ul></ul>
  20. 20. <ul><li>Market Testing </li></ul><ul><ul><li>Kotler: General Mills’ Toast-Ems toaster pastries, Colgate-Palmolive </li></ul></ul><ul><ul><li>Local: Globe, Smart, Sun </li></ul></ul><ul><ul><li>Medical: Pharmaceutical companies </li></ul></ul>
  21. 21. Managing the Development Process Business analysis: Will this product meet our profit goal? Product development: Have we got a technically and commercially sound product? Market Testing Have product sales met expectations? DROP Commercialization: Are product sales meeting expectations? Send the idea back for product development Modify the product or marketing program
  22. 22. Managing the Development Process <ul><li>8. Commercialization </li></ul><ul><ul><li>When (Timing) </li></ul></ul><ul><ul><li>Where (Geographic Strategy) </li></ul></ul><ul><ul><li>To Whom (Target-Market Prospects) </li></ul></ul><ul><ul><li>How (Introductory-Market Strategy) </li></ul></ul>
  23. 23. <ul><li>Kotler: Apple iPod </li></ul>
  24. 24. <ul><li>Kotler: Apple iPod </li></ul><ul><li>Local: Clear Shampoo </li></ul><ul><li>Medical: Medical City, Belo Medical Group, Calayan </li></ul>
  25. 25. 9. Factors Influencing the Adoption Process <ul><li>Readiness and Personal Influence </li></ul>
  26. 26. Factors Influencing the Adoption Process <ul><li>Readiness and Personal Influence </li></ul><ul><ul><li>Kotler: Nike skateboard </li></ul></ul><ul><ul><li>Local: Mini Cooper </li></ul></ul><ul><ul><li>Medical: Lasik, stem cell therapy </li></ul></ul>
  27. 27. 10. Characteristics of the Innovation <ul><li>Relative advantage </li></ul><ul><li>Compatibility </li></ul><ul><li>Complexibility </li></ul><ul><li>Divisibility </li></ul><ul><li>Communicability </li></ul>
  28. 28. <ul><li>Kotler: TiVo, or PVRs </li></ul><ul><li>Local: iPhone, preventive supplements </li></ul><ul><li>Medical: Laparoscopic surgery, Lasik, glutathione </li></ul>

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