introduction to new market offerings
TRANSCRIPT
INTRODUCING NEW MARKET OFFERINGS
PRESENTED BY :NAVEEN K V
PEMMAIAH K LBIKRAM DEBNATH
VARGHESE PAULSUBHASISH SIKDAR
SILLA RUPESHSYED NABEEL ALI
Managing existing products
• Line extension
• Product modifications
functional modifications
quality modifications
aesthetic modifications
New product
Idea generation screening Concept testing
Business analysisProduct
developmentTest marketing
commercialization
Categories of New Products
New-to-the-world
Ex : Apple I-pod , Flat screen TV
New product lines
Ex : Game console for SONY
Cont… Additions to product lines
Ex : Nokia add features in
their Handset.
Improvements to products
Ex : Intel Processor
Criteria for Staffing Venture Teams
Desired team leadership style and level of expertise
The more complex the new-product concept, the greater the desired expertise.
Team member skills and expertise.
New-venture teams for Aventis, part of pharmaceutical company.
Level of interest in concept.
Is there interest or, even better, a high level of ownership and commitment (a "concept champion")?
Cont…
Potential for personal reward.
What motivates individuals to want to participate in this effort?
Diversity of team members.
This includes race, gender, nationality, breadth of experience, depth of experience, and personality. The greater the diversity, the greater the range of viewpoints and decision-making potential.
Idea Generation: Creativity Techniques
Idea Generation: Creativity Techniques
• Attribute listing
• Forced relationships
• Morphological analysis
• Reverse assumption analysis
• New contexts
• Mind mapping
IDEA GENERATION:CREATIVITY TECHNIQUES
• Gas stations +
food
• Cafeteria +
Internet
• Cereal +
snacking
• Candy + toy
• Audio +
portable
LATERAL MAPPING
CONCEPTS IN CONCEPT DEVELOPMENT
• Product idea
• Product concept
• Category concept
• Brand concept.
• Concept testing.
• Communicability and
believability
• Need level
• Gap level
• Perceived value
• Purchase intention
• User targets, purchase
occasions, purchasing
frequency
CONCEPT TESTING
Marketing Strategy
Marketing strategy is the
goal of increasing sales
and achieving a
sustainable competitive
advantage.
preliminary steps:
1. Target market’s sizeStructureBehaviour
2. Planned priceDistribution Promotion for 1
year
3. Long run salesProfit goalsMarketing mix
strategy overtime
Product Development
Quality Function Development
Customer attributes
Engineering attributes
QFD –Translating target customer requirements into a working prototype is helped by a set of methods
CA- The methodology takes the list of desired customer attributes
EA-will do market research and turns them into a list of engineering attributes
A Major contribution of the QFD is improved communication between markets, engineers and manufacturing
Prototype Testing
Developing a prototype of your product allows you to bring your product to life for the first time and test it in its market.
Prototype-An early sample built to test a concept or process
Three types of prototype testing
1. Alpha testing- within the firm
2. Beta testing- with the customers
3.Market testing- give information about buyers, dealers and
market potential
Consumer Goods Market testing
Sales-Wave Research
Simulated Test Marketing
Controlled Test Marketing
Test Market
20-26
Timing of Market Entry
First entry
The first firm entering a market usually enjoy the “first mover advantage”
Parallel entry The firm might time its entry to coincide
with the competitor’s entry.ex : smart phones, Computers
Late entryThe firm might delay its launch until after
the competitor had borne the cost of educating the market .
1.Market Potential
Market potential is the entire size of the market for a product at a specific time . Market potential is usually measured either by sales value or sales volume.
Criteria for Choosing Rollout Markets
Consumer-Adoption Process
“Adoption is an individual’s decision
to become a regular user
of a product”
AwarenessConsumer become aware of the new product, but lacks information about it.
InterestConsumer seek information about new product.
EvaluationConsumer consider whether trying
new product make sense.
TrialConsumer tries new product on a
small scale to improve his or her estimate of its new value.
Innovators
Venturesome people and risk takers who are the very first users.
Early adopters
prestige oriented opinion leaders.
Early majority
The leading segment of the mass market. Who adopt the new technology when its benefits are proven and a lot of adoption has already taken place.
Late majority
Skeptical conservatives who are risk averse, technology shy, and price sensitive.
Laggards
Conservative, tradition bound and resist the innovation until the status is no longer defensible
Characteristics of an Innovation
• Relative advantage
• Compatibility
• Complexity
• Trial ability
• Observability
Relative advantage
The perception that the innovation is more satisfactory than items that already exist in the same class of product.
Compatibility
Is an estimate of harmony between the innovation and the values and norms of potential adopters.
Complexity
Is a gauge of the difficulty faced by a customerin understanding and using the innovation.
Trial ability
The relative ease of testing out the innovation before making a decision.
ObservabilityThe degree of visibility affords by innovation
Reasons for Failure
• Unable to reach the market.
• Some new products are not capable enough to survive due to the competition.
• Lack of proper market research.
• Faulty product idea
• Distribution related problems