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1-1Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
After studying this chapter you
should be able to:
Recognize the different types of new products.
New products
drive sales and New Product
profit growth.
Failure Rate
May Be 80%
New products
may gain market share
from competitors.
1-3Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Types of New Products
New to the World Products
Product Improvements
Repositionings
1-4Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Sources of New Products
External Internal
Sourcing Development
Collaborative
Venture
1-5Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
New-Product Development Process
Idea Generation
Prototype
Development
Idea Screening
Test Marketing
Concept
Development
& Testing
Commercialization
Business
Analysis
1-6Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
New-Product Development Approaches
1-7Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Idea Generation
Idea Generation:
The initial stage for the new-product
development process.
1-8Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Idea Screening
Idea Screening:
Evaluate the idea pool and reduce it to a
smaller and more attractive set of potential
new products.
1-9Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Concept Development and Testing
Concept Development:
The process of shaping and refining the idea into a
more complete product concept.
1-10
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Business Analysis
Business Analysis:
Stage of the new-development process that
calls for preparing initial marketing plans for the
product.
1-11
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Prototype Development
Prototype Development:
Converting the concept into an actual product.
1-12
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Test Marketing
Test Marketing:
Testing the product
prototype and marketing
strategy in simulated or
actual market situations.
Simulated Test
Marketing:
Evaluating a new product
in situations contrived to
be similar to how
consumers would
purchase and use it.
1-13
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Test Marketing
1-14
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Commercialization
Commercialization:
The firm introduces the product on a full-scale basis,
involving:
Understanding Consumer Adoption
Timing
Coordination
1-15
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
The Consumer Adoption Process
Consumer Marketing Strategy
Adoption Stage Objective
1-16
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Keys to New-Product Success
1-17
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Organizational Approaches to New
Product Development
Balanced Matrix
Organization
Project Team
Organization
Project Matrix
Organization
1-18
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing-Research Support
Prelaunch
1-19
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
Market-Research Support
Rollout
1-20
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.
The Best Products for 2001
1-21
Irwin/McGraw-Hill Copyright 2001 by The McGraw-Hill Companies, Inc. All rights reserved.