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20
Introducing New
Market Offerings
1
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-2
Factors That Limit
New Product Development
 Shortage of ideas
 Fragmented markets
 Social and governmental constraints
 Cost of development
 Capital shortages
 Faster required development time
 Shorter product life cycles
What is a Venture Team?
 A venture team is a cross-functional group
charged with developing a specific product or
business.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-3
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-4
Criteria for Staffing Venture Teams
 Desired team leadership style
 Desired level of leader expertise
 Team member skills and expertise
 Level of interest in concept
 Potential for personal reward
 Diversity of team members
Figure 20.1 New-Product
Development Decision Process
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-5
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-6
Ways to Find Great New Ideas
 Run informal sessions with customers
 Allow time off for technical people to putter on
pet projects
 Make customer brainstorming a part of plant
tours
 Survey your customers
 Undertake “fly on the wall” research to
customers
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-7
Drawing Ideas from Customers
 Observe customers using product
 Ask customers about problems with products
 Ask customers about their dream products
 Use a customer advisory board or a brand
community of enthusiasts to discuss product
Consumer Goods Market Testing
 Sales-Wave Research
 Simulated Test Marketing
 Controlled Test Marketing
 Test Markets
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-8
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-9
Test Market Decisions
 How many test cities?
 Which cities?
 Length of test?
 What information to collect?
 What action to take?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-10
What is Adoption?
Adoption is an individual’s decision to
become a regular user of a product.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-11
Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
Figure 20.7 Adopter
Categorization on the Basis of
Relative time of Adoption
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-12

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kotler_mm_14e_20_ippt.ppt

  • 2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-2 Factors That Limit New Product Development  Shortage of ideas  Fragmented markets  Social and governmental constraints  Cost of development  Capital shortages  Faster required development time  Shorter product life cycles
  • 3. What is a Venture Team?  A venture team is a cross-functional group charged with developing a specific product or business. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-3
  • 4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-4 Criteria for Staffing Venture Teams  Desired team leadership style  Desired level of leader expertise  Team member skills and expertise  Level of interest in concept  Potential for personal reward  Diversity of team members
  • 5. Figure 20.1 New-Product Development Decision Process Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-5
  • 6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-6 Ways to Find Great New Ideas  Run informal sessions with customers  Allow time off for technical people to putter on pet projects  Make customer brainstorming a part of plant tours  Survey your customers  Undertake “fly on the wall” research to customers
  • 7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-7 Drawing Ideas from Customers  Observe customers using product  Ask customers about problems with products  Ask customers about their dream products  Use a customer advisory board or a brand community of enthusiasts to discuss product
  • 8. Consumer Goods Market Testing  Sales-Wave Research  Simulated Test Marketing  Controlled Test Marketing  Test Markets Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-8
  • 9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-9 Test Market Decisions  How many test cities?  Which cities?  Length of test?  What information to collect?  What action to take?
  • 10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-10 What is Adoption? Adoption is an individual’s decision to become a regular user of a product.
  • 11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-11 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption
  • 12. Figure 20.7 Adopter Categorization on the Basis of Relative time of Adoption Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 20-12