12<br />THE PRODUCT EXPERIENCE:NEW PRODUCT DEVELOPMENT<br />Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights...
LEARNING OBJECTIVES<br />Recognize the importance of new product development to long term success<br />Understand the new ...
NEW PRODUCTS – CREATING LONG TERM SUCCESS<br />“New” Defined<br />Company Perspective<br />New-to-the-World <br />Disrupti...
NEW PRODUCTS – CREATING LONG TERM SUCCESS<br />“New” Defined<br />Customer’s Perspective<br />The customer’s perspective i...
NEW PRODUCTS – CREATING LONG TERM SUCCESS<br />12-5<br />
NEW PRODUCT DEVELOPMENT PROCESS <br />The three major activities in new product development are: <br />Identify Product Op...
NEW PRODUCT DEVELOPMENT PROCESS <br />Identify Product Opportunities<br />Generate New Ideas<br />12-7<br />
NEW PRODUCT DEVELOPMENT PROCESS <br />Identify Product Opportunities<br />Screen And Evaluate Ideas<br />Go-to-Market Mist...
NEW PRODUCT DEVELOPMENT PROCESS <br />Define the Product Opportunity<br />Define and Test Product Concept<br />Product def...
NEW PRODUCT DEVELOPMENT PROCESS <br />Define the Product Opportunity<br />Create Marketing Strategy<br />Marketing<br />Pr...
NEW PRODUCT DEVELOPMENT PROCESS <br />Define the Product Opportunity<br />Conduct Business Case Analysis<br />Total Demand...
NEW PRODUCT DEVELOPMENT PROCESS <br />Develop the Product Opportunity<br />Develop The Product<br />Product Testing<br />T...
Summary of Decision Criteria in Market Tests<br />EXHIBIT 12.5<br />Source: www.emeraldinsight.com.<br />12-13<br />
CONSUMER ADOPTION AND DIFFUSION PROCESS<br />Consumer Product Adoption Process<br />Innovation diffusion process is how lo...
CONSUMER ADOPTION AND DIFFUSION PROCESS<br />Consumer Product Adoption Process<br />An individual moves through five stage...
CONSUMER ADOPTION AND DIFFUSION PROCESS<br />The Diffusion Of New Innovations<br />Innovators (2.5%)<br />Early Adopters (...
Consumer Product Adoption Chart<br />EXHIBIT 12.7<br />Source: www.rubiconconsulting.com.<br />12-17<br />
Thank You, Please Visit Us At :<br />http://wanbk.page.tl<br />
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Chap012

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Chap012

  1. 1. 12<br />THE PRODUCT EXPERIENCE:NEW PRODUCT DEVELOPMENT<br />Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved<br />McGraw-Hill/Irwin<br />
  2. 2. LEARNING OBJECTIVES<br />Recognize the importance of new product development to long term success<br />Understand the new product development process<br />Comprehend the process consumers use in adopting a new product<br />Identify how new products become diffused in a market<br />12-2<br />
  3. 3. NEW PRODUCTS – CREATING LONG TERM SUCCESS<br />“New” Defined<br />Company Perspective<br />New-to-the-World <br />Disruptive Innovation<br />Sustaining Innovations<br />Reposition Existing Products <br />Cost Reduction<br />12-3<br />
  4. 4. NEW PRODUCTS – CREATING LONG TERM SUCCESS<br />“New” Defined<br />Customer’s Perspective<br />The customer’s perspective is much more narrow and self directed.<br />The customer is most interested in an answer to the fundamental question, is this new product new to me?<br />12-4<br />
  5. 5. NEW PRODUCTS – CREATING LONG TERM SUCCESS<br />12-5<br />
  6. 6. NEW PRODUCT DEVELOPMENT PROCESS <br />The three major activities in new product development are: <br />Identify Product Opportunities<br />Define the Product Opportunity<br />Develop the Product Opportunity<br />12-6<br />
  7. 7. NEW PRODUCT DEVELOPMENT PROCESS <br />Identify Product Opportunities<br />Generate New Ideas<br />12-7<br />
  8. 8. NEW PRODUCT DEVELOPMENT PROCESS <br />Identify Product Opportunities<br />Screen And Evaluate Ideas<br />Go-to-Market Mistake<br />Stop-to-Market Mistake<br />12-8<br />
  9. 9. NEW PRODUCT DEVELOPMENT PROCESS <br />Define the Product Opportunity<br />Define and Test Product Concept<br />Product definition has three objectives:<br />Defines the product’s value proposition; what customer needs are being addressed and, in broad terms, at what price. <br />The definition briefly identifies the target market(s) (who is the target market(s), what is the purchase frequency). <br />The definition delineates the product’s characteristics (look, feel, physical elements, and features of the product).<br />12-9<br />
  10. 10. NEW PRODUCT DEVELOPMENT PROCESS <br />Define the Product Opportunity<br />Create Marketing Strategy<br />Marketing<br />Program<br />Target<br />Market<br />Promotion<br />Product<br />Price<br />Place<br />12-10<br />
  11. 11. NEW PRODUCT DEVELOPMENT PROCESS <br />Define the Product Opportunity<br />Conduct Business Case Analysis<br />Total Demand<br />New purchases<br />Repeat purchases<br />Replacement purchases<br />Profitability Analysis<br />12-11<br />
  12. 12. NEW PRODUCT DEVELOPMENT PROCESS <br />Develop the Product Opportunity<br />Develop The Product<br />Product Testing<br />Test the Market<br />Consumer Product Market Tests <br />Business Product Market Tests<br />Product Launch<br />12-12<br />
  13. 13. Summary of Decision Criteria in Market Tests<br />EXHIBIT 12.5<br />Source: www.emeraldinsight.com.<br />12-13<br />
  14. 14. CONSUMER ADOPTION AND DIFFUSION PROCESS<br />Consumer Product Adoption Process<br />Innovation diffusion process is how long it takes a product to move from first purchase to last purchase (the last set of users to adopt the product).<br />12-14<br />
  15. 15. CONSUMER ADOPTION AND DIFFUSION PROCESS<br />Consumer Product Adoption Process<br />An individual moves through five stages before adopting a product:<br />12-15<br />
  16. 16. CONSUMER ADOPTION AND DIFFUSION PROCESS<br />The Diffusion Of New Innovations<br />Innovators (2.5%)<br />Early Adopters (13.5%)<br />Early Majority (34.5%)<br />Late Majority (34%)<br />Laggards (16%)<br />12-16<br />
  17. 17. Consumer Product Adoption Chart<br />EXHIBIT 12.7<br />Source: www.rubiconconsulting.com.<br />12-17<br />
  18. 18. Thank You, Please Visit Us At :<br />http://wanbk.page.tl<br />

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