Product Management and New–Product Development

1. Product Management and New–Product Development

8. New Product Planning What Is a New Product? FTC Rule: 6 Months Ethical Dilemmas Exist

9. 2. Screening 3. Idea evaluation 4.Development 5. Commercial-ization An Organized New-Product Development Process is Critical 1. Idea generation

10. 1. Idea generation • Ideas from customers and users • Marketing research • Competitors • Other markets • Company people, intermediaries, etc. Step 1: Idea Generation 1. Idea generation 2. Screening 3. Idea evaluation 4.Development 5. Commercial-ization

11. 2. Screening • Strengths and weaknesses • Fit with objectives • Market trends • Rough ROI estimate Step 2: Screening 1. Idea generation 2. Screening 3. Idea evaluation 4.Development 5. Commercial-ization

12. Step 2: Screening and Types of New Product Opportunities (Exhibit 10-5) 1. Idea generation 2. Screening 3. Idea evaluation Desirable products Salutary products 4.Development Pleasing products Deficient products 5. Commercial-ization

13. 3. Idea Evaluation • Concept testing • Reactions from customers • Rough estimates of costs, sales, and profits Step 3: Idea evaluation 1. Idea generation 2. Screening 3. Idea evaluation 4.Development 5. Commercial-ization

14. 4. Development • R&D • Develop model or service • Test marketing mix • Revise plans as needed • ROI estimate Step 4: Development 1. Idea generation 2. Screening 3. Idea evaluation 4.Development 5. Commercial-ization

15. 5. Commercialization • Finalize product and marketing plan • Start production and marketing • “Roll out” in select markets • Final ROI estimate Step 5: Commercialization 1. Idea generation 2. Screening 3. Idea evaluation 4.Development 5. Commercial-ization

18. Complete marketing plan Effective transition to regular operations Organized new-product development process A basis for superior customer value Effective design New Product Development: A Total Company Effort New-product success

21. Top management support Cross-functional team Clear understanding of customer needs Culture of innovation Product champion with authority Timely development cycle Cost management (costs add value) New Product Development: A Total Company Effort(Exhibit 10-6) Organized new-product development process

22. Managing Product Quality “This innovative cloth mask contains Nanosomes of Pro-Retinol A® and Par-Elastyl™ to firm skin and fight against the signs of aging. It’s infused with 7X your daily dosage of anti-wrinkle moisturizer, so you get a week’s worth of treatment in just 10 minutes.” “The nanosome is used in particular to transport lipophilic active ingredients, that is those that are soluble in oil. Given that the interstices of the outer layer of skin measure about 100 nanometers, nanovectors offer the best solution to the problem of transporting and concentrating active ingredients in the skin.” “The effectiveness of nanosomes and the superiority of vitamin E protection when it is incorporated into nanoparticles have been demonstrated in vivo.”

23. Why Things Go Wrong(Exhibit 10-8)

24. Other Issues in Quality Implementation Efforts Managers Lead the Effort Specify Jobs and Benchmark Get a Return on Quality

25. Group Assignment • Go to: http://www.nanotechproject.org/inventories/consumer/browse/companies/ and select a company/product that interests you. • Assume that you worked for this company and explain the five step process that you would go through to launch this new nano product. That is explain, how this firm would actually do each new product activity for the product. • See the Hart Report online and read it. Based upon the report, do you think launching new nano products to households will be harder in the future? Please explain.