Strategic Product Development for Market Success
Learn how to develop, manage, and market new products effectively while considering market strategy, SWOT analysis, idea generation, screening, business analysis, development, market testing, and commercialization.
Strategic Product Development for Market Success
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Presentation Transcript
Developing & Managing Products Chapter 11
New-product Strategy • Link product development to MKT strategy • 3M • Identify markets and strategic roles • Environmental scanning • SWOT analysis Source: http://www.logotecs.com
Idea Generation • Customers • Employees • Distributors • Vendors • Competitors • Research & Development • Consultants Source: http://www.clker.com/clipart-9721.html
Idea Screening • First filter • Committee Reviews • Concept test
Business Analysis • Last checkpoint before capital is committed • Look at product and marketing strategy needed to commercialize it • Preliminary figures
Development • “Paper into prototype” • Testing against standards • Work on marketing mix • Team-based analysis • Internet • Customer panels
Market Testing • Company chooses a specific market, based on criteria • Advantages • Disadvantages • Internet
Commercialization • Positioning and launching a product • Most expensive step • Slotting fee • Failure fee
Diffusion of Innovation • Innovators (2.5%) • Early adopters (13.5%) • Early majority (34%) • Late majority (34%) • Laggards (16%) Source: http://tutor2u.net
Diffusion of Innovation • Factors for Adoption • Complexity • Compatibility • Relative advantage • Observability • Trialability • Implications
The Product Life Cycle • Introduction Stage • Growth Stage • Maturity Stage • Decline Stage
Introduction Stage • Create awareness and encourage customers to try the product • Advertising • Primitive demand • Distribution issues • Pricing issues
Growth Stage • Rapid increases in sales • Competition • Advertising • Selective demand • Who is buying? • Distribution
Maturity Stage • Slowing sales and decreasing profits • Marketing strategy • Hold market share
Decline Stage • Sales and profits drop • Marketing strategy • Deletion • Harvesting
Product Cycle Dimensions • Length • Shape • Generalized product • High learning product • Low learning product • Fashion product • Fad product Source: www.your90s.com
Why do New Products Fail? • Insignificant “point of difference” • Incomplete market and product definition before development starts • Too little market attentiveness • Poor execution of marketing mix • Bad timing • No economical access to buyers
