Chapter

15
Introducing New
Market Offerings

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 New-Product Options
• Buy other companies
• Buy patents from other
companies
• Buy a license or franchise
from another company
• New-to-the-world items
• Improvine existing products

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 New-Product Failure

• Fragmented • Shorter
markets development time
• Social, economic, • Poor launch timing
and government • Shorter PLCs
constraints
• Lack of
• Development costs organizational
• Capital shortages support

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 Figure 15.1
New-Product Development Process

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 Generating Ideas
• Interacting with
employees
• Interacting with
outsiders
• Studying competitors
• Adopting creativity
techniques

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 Ways to Find New-Product Ideas
• Informal customer
sessions
• Time off for technical
people to putter
• Customer brainstorming
• Survey your customers
• “ Fly on the wall”
research
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• Iterative rounds with
customers
• Keyword search to scan
trade publications
• Treat trade shows as
intelligence missions
• Have employees visit
supplier labs
• Set up an idea vault
15-6
Ways to draw new ideas from
customers

 Observe customers using product

 Ask customers about product problems
 Ask customers about dream products
 Use customer advisory board
 Use Web sites
 Form brand community of enthusiasts
 Challenge customers to improve product

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 Test Market Decisions
• Test Marketing is a limited geographic
introduction of a new product to gauge its
potential
• How many test cities?
• Which cities?
• Length of test?
• What information to collect?
• What action to take?
Copyright
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Education, Pearson Education,
 Publishing Inc.
as Prentice Hall 20-8 15-8
Development to Commercialization

• Commercialization
– Where (Geographic
Strategy)
– To Whom (Target-
Market Prospects)
– How (Introductory
Market Strategy)

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 The Consumer-Adoption Process
• Adoption
– An individual’s decision to become a regular
user of a product

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 Stages in the
Adoption Process
Awareness

Interest

Evaluation

Trial

Adoption

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 Factors Influencing the Adoption
Process
• Readiness to try new products and personal
influence

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