Assignment 2 marketing management

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20
Introducing New Market Offerings

Chapter Questions

What challenges does a company face in developing new products and services?
What organizational structures and processes do managers use to oversee new-product development?
What are the main stages in developing new products and services?

Chapter Questions

What is the best way to manage the new-product development process?
What factors affect the rate of diffusion and consumer adoption of newly launched products and services?

Categories of New Products

New to the World

Additions

Improvements

Repositionings

Cost reductions

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

Table 201. Finding One Successful Product

What is a Venture Team?

A venture team is a cross-functional group charged with developing a specific product or business.

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

Ways to Find Great New Ideas

Run informal sessions with customers
Allow time off for technical people to putter on pet projects
https://metro.co.uk/2018/03/16/took-tour-googles-magic-happens-dreamy-imagine-7337482/
Make customer brainstorming a part of plant tours
Survey your customers
Undertake “fly on the wall” research to customers

More Ways to Find Great Ideas

Use iterative rounds with customers
Set up a keyword search to scan trade publications
Treat trade shows as intelligence missions
Have employees visit supplier labs
Set up an idea vault

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

Idea Generation:
Creativity Techniques

Attribute listing: list the attributes of an object then try to modify
Forced relationships: list several ideas and consider how each relates to the others
Morphological analysis: involves starting with a problem, and then identifying the dimensions, the medium, and the power source
Reverse assumption analysis: list all the normal assumptions about an entity and then reverse them
New contexts: instead of adopting the logical, normal manner of looking at a challenge, you reverse it and think about opposite ideas.
Mind mapping: is intended for generating as many ideas as possible in relation to a specific topic

Lateral Marketing

Gas stations + food
Cafeteria + Internet
Cereal + snacking
Candy + toy
Audio + portable

Figure 20.2 Forces Fighting
New Ideas

Figure 20.3 Product and
Brand Positioning

Concept Testing

Communicability and believability
Need level
Gap level
Perceived value
Purchase intention
User targets, purchase occasions, purchasing frequency

Figure 20.6 Product Life-Cycle Sales for Three Types of Products

Prototype Testing

Alpha testing
Beta testing
Rank-order method
Paired-comparison method
Monadic-rating method
Market testing

Consumer Goods Market Testing

Sales-Wave Research
Simulated Test Marketing
Controlled Test Marketing
Test Markets

Test Market Decisions

How many test cities?
Which cities?
Length of test?
What information to collect?
What action to take?

Timing of Market Entry

First entry
Parallel entry
Late entry

What is Adoption?

Adoption is an individual’s decision to become a regular user of a product.

Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption

Figure 20.7 Adopter Categorization on the Basis of Relative time of Adoption

Characteristics of an Innovation

Relative advantage
Compatibility
Complexity
Divisibility
Communicability

For Review

What challenges does a company face in developing new products and services?
What organizational structures and processes do managers use to oversee new-product development?
What are the main stages in developing new products and services?

For Review

What is the best way to manage the new-product development process?
What factors affect the rate of diffusion and consumer adoption of newly launched products and services?