chapter 20 intro new market offer
DESCRIPTION
Introducing New Market OfferingTRANSCRIPT
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1Introducing New Market
Offerings
Arnold A. Tolentino7 February 2014
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5 Things to Know in Introducing New Market Offerings
1Challenges
2Organizational structures
& processes
3Stages in Development
4Best ways to manage NPD
5Consumer Adoption
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Continuous Innovation to seize new market opportunities and to create new choices
New Product Success Unique, superior product Well-defined product concept Produce locally, think globally
New Product Failure Accept as part of the “game” to be
successful
Challenges
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5 Types of New Products
1New to the World
2Additions
3Improvements
4Repositioning
5Cost reductions
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Organizational Structures for the Development Process
New Product Management
Budget R & D
Marketing
SVP – Product Development
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What is a Venture Team?
A venture team is a cross-functional group charged with
developing a specific product or business; intrapreneurs are relieved of other duties and provided a budget and time
frame.
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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
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New-Product Development Decision Process
DROP
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1 Idea
Genera-tion
Is it worth considering
?
2 Idea
Screen-ing
Is it compatible
with corporate
objectives?
3Concept Dev’t & Testing
Can we find a good concept
consumers say they
would try?
4 Mktg Strat Dev’t
Can we find a cost-
effective, affordable
mktg strategy?
5B’ness
Analysis
Will this product
meet our businesss
goals?
Y Y Y Y Y
N N N N N
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New-Product Development Decision Process
DROP
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6 Prod Dev’t
Have we got a
technically and
c’mercially sound
product?
7 Market Testing
Have product
sales met xpectations
?
8Commercializa-
tion
Are product sales
meeting xpectations
?
Y Y Y Lay Future Plans
Send it back for
prod dev’t?
Modify the prod or mktg
program?
Y
Y
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New-Product Development Decision Process
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Stages in Managing the Development Process
1Dream to Ideas
2Concept to Strategy
3Development to
Commercialization
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Ideas : 10 Ways to Find Them
1. Run informal sessions
2. Technical people to putter on pet projects
3. Customer brainstorming as part of plant tours
4. Survey your customers
5. Undertake “fly on the wall” research
6. Use iterative rounds with customers
7. Do keyword search to scan trade publications
8. Treat trade shows as intelligence missions
9. Have employees visit supplier labs
10. Set up an idea vault
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Ideas : How to Obtain from Customers Observe how they use the product Ask about their problems with the
products Ask about their dream products Use advisory board or a brand
community of enthusiasts to discuss product
Challenge them to change or improve your product
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Concept Testing
Communicability and believability
Need level Gap level Perceived value Purchase intention User targets,
purchase occasions, purchasing frequency
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Marketing Strategy
First Stage:
Target market’s size, structure, and behavior
Second Stage:Planned price, distribution, and promotion for year one
Third Stage:Long-run sales and profit goals and marketing-mix
strategy over time
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Test Market Decisions
Select test cities Which cities Length of test What information to
collect What action to take
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What is Adoption?
Adoption is an individual’s decision to become a regular user of a product.
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5 Stages in the Adoption Process
Awareness(aware but lacks info)
Interest(seek info)
Evaluation(consider to try product)
Trial(try to improve his estimate of its value)
Adoption(decide as regular user)
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In Summary Company, to be competitive,
must welcome all ideas for consideration to develop appropriate new products;
New products developed must passed series of processes and rigid market tests, the challenge is on marketeer’s ability to ensure product adoption;
The consumer-adoption process may be influenced by many factors beyond marketeer’s control, including consumers willingness to try new products.
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