Principlesofmarketing.com

1. Principlesofmarketing.com Chapter Six – How do companies decide what products and services to market?

2. Definition of ‘new product’ • “A new product is everything the buyer receives in the exchange, bad and good, intended and unintended” • When the consumer buys a product s/he is buying benefits. For example, think of what you are buying when you buy a new car in terms of the benefits you are seeking.

3. The ideal climate for New Product Development • Goal clarity • Adequate resources • Encouragement • Freedom • Integrity

4. Stages in the new product development process • Idea generation • Idea assessment • Concept testing • Idea choice • Idea prototype development and testing • Final version development • Commercialization

5. Common pitfalls in the new product development process • Lack of goal clarity • Lack of resources • Lack of encouragement • Lack of freedom • Lack of integrity (that is, will management do what it promises?)

6. Typical roles in NPD teams • Positive Roles • Willie, the wild idea man • Inga, the analytical • Edith, the encourager • Pam, the peacemaker • Otto, the observer

7. Typical roles in NPD teams • Negative Roles • Doubtful David • Serious Sandra • Patty the Parent • Nasty Nick • War Story Wally

8. Organizing for new product development • Traditional ‘silo’ organization • Organizational functions share equal power • Functions usually struggle for resources and control over process rather than cooperate • Wasteful and comparatively inefficient and ineffective • Slow, political process

9. Organizing for new product development Contemporary organizations • Cross-functional teams • Looser • Less management interference • More fun in the process • More dedication from team members • Much faster process

10. The role of product positioning in new product development • A product’s position is the image the product has in the minds of the target market • For example, which one of the following cars does not belong in the list? • BMW • HYUNDAI • LEXUS • MERCEDES-BENZ • JAGUAR • Why? What is your reasoning?

11. Product Positioning • Which one of the following beers does not belong on the list? • Coors • Bud • Miller • Avalanche • Why? What is your reasoning?

12. Product Positioning Map for bar soap higher price Safeguard Oil of Olay Coast better for skin better for getting clean Zest Camay Ivory lower price

13. Group exercises • Grp 1 – Select three new consumer products and explain what additional benefits these products provide that weren’t available before this product was introduced • Grp 2 – Select a product or service and identify a few possible intended and unintended consequences of the purchase and how those consequences might impact consumer satisfaction or dissatisfaction

14. Group exercises • Grp 3 – Identify the most important benefits being purchased for the following products: a. a new expensive wristwatch, b. a new microwave oven, c. a new, big screen TV, d. a bottle of an exclusive women’s perfume • Grp 4 – compare and contrast the traditional ‘silo’ organization for new product development with the cross-functional team approach to new product development, identifying the advantages and disadvantages of eachapproach

15. Group exercises • Grp 5 – Give an example in which the five factors of a good environment for new product development exist and an example in which the five factors of a good environment for product development do not exist Grp 6 – Prepare a brief skit to demonstrate the five positive roles on new product development teams

16. Group exercises • Grp 7 – Prepare a brief skit to demonstrate the five negative roles on new product development teams • Grp 8 – prepare a product positioning map for toothpaste