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Marketing Management in New-Product Development in Finnish Online Game Industry

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Thesis presentation on "Marketing Management in New-Product Development in the Finnish Online Game Industry".
The actual study can be found here: http://pyrylehdonvirta.wordpress.com/2009/10/19/fff-five-forces-of-the-finnish-online-game-industry/

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Marketing Management in New-Product Development in Finnish Online Game Industry

  1. 1. MARKETING MANAGEMENT IN NEW-PRODUCT DEVELOPMENT IN FINNISH ONLINE GAME INDUSTRY Pyry Lehdonvirta Casual Continent Ltd
  2. 2. Presentation overview <ul><li>INTRODUCTION </li></ul><ul><li>STUDY </li></ul><ul><li>RESULTS </li></ul><ul><li>Background </li></ul><ul><li>Problem </li></ul><ul><li>Goal of the study </li></ul><ul><li>Structure of the study </li></ul><ul><li>Literature review </li></ul><ul><li>Case studies </li></ul><ul><li>Resulting model </li></ul><ul><li>Conclusions </li></ul><ul><li>Further studies </li></ul>
  3. 3. Background <ul><li>Finnish game industry turnover 87 million euros (2008), 87% from export </li></ul><ul><li>TEKES subvents the game industry by 6 million euros per year </li></ul><ul><ul><li>Goal to make games a significant export industry </li></ul></ul><ul><li>Online games account for the majority of the game industry revenue </li></ul><ul><li>Finnish online game industry </li></ul><ul><ul><li>4 medium sized companies (Sulake, Apaja Online Entertainment, Frosmo, Sanoma Entertainment) </li></ul></ul><ul><ul><li>Number of under 15 person companies </li></ul></ul><ul><ul><li>Companies with core in non-online gaming </li></ul></ul>
  4. 4. Problem <ul><li>New-product development evaluation process seems to be vague and even emotional </li></ul><ul><li>Success of a game difficult to pre-evaluate </li></ul><ul><li>Enthusiastic game consumers also end up in the industry </li></ul><ul><li>-> Decision-making shifts toward personal intuition and away from systematical analytic evaluation? </li></ul>
  5. 5. Goal of the study <ul><li>This study seeks to provide a market-driven approach for the planning of new-product development in Finnish online game industry </li></ul>
  6. 6. Structure of the study <ul><li>Background </li></ul><ul><li>Literature review -> synthesis </li></ul><ul><li>Case studies (interviews) -> elaborated synthesis </li></ul><ul><li>Conclusions </li></ul>
  7. 7. Literature review <ul><li>Studies on game industry to define the the market specific constraints </li></ul><ul><ul><li>Limited material found </li></ul></ul><ul><li>General marketing management literature studied for suitable models </li></ul><ul><ul><li>Kotler & Keller as basis </li></ul></ul><ul><li>Synthesis summarises identified relevant points in an adapted version of Porter's Five Forces </li></ul>
  8. 8. Case studies <ul><li>Sanoma Entertainment : Pelikone </li></ul><ul><ul><li>Fernando Herrera (Director of Gaming and Online) </li></ul></ul><ul><li>Frosmo : Frosmo </li></ul><ul><ul><li>Mikael Gummerus (CEO) </li></ul></ul><ul><li>Apaja Online Entertainment : Playray (Aapeli) </li></ul><ul><ul><li>Asmo Halinen (Founder, ex-CEO) </li></ul></ul>
  9. 9. Resulting model The Five Forces of Finnish online game industry
  10. 10. Results
  11. 11. Conclusions <ul><li>Case studies show marketing managemen t had been neglected </li></ul><ul><ul><li>Later on all had introduced marketing management </li></ul></ul><ul><ul><li>Marketing management one of the key factors in all of the successes </li></ul></ul><ul><li>Resulting model close to Dave Chaffey's Five Forces adaptation for the internet era (2007) </li></ul><ul><li>The study reached its goal by providing a model </li></ul><ul><ul><li>The model remains to be evaluated </li></ul></ul>
  12. 12. Further studies <ul><li>Expanding to the whole Finnish game industry </li></ul><ul><li>Expanding scope geographically, Western online game industry? </li></ul><ul><li>Marketing management in game developer start-ups </li></ul><ul><li>Marketing management throughout a game's life-cycle </li></ul><ul><li>Benefits of marketing management in online game development industry </li></ul>
  13. 13. Questions?

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