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Developing & Managing Products

Developing & Managing Products. Chapter 11. New Product Development. 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

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Developing & Managing Products

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  1. Developing & Managing Products Chapter 11

  2. New Product Development

  3. New-product Strategy • Link product development to MKT strategy • 3M • Identify markets and strategic roles • Environmental scanning • SWOT analysis Source: http://www.logotecs.com

  4. Idea Generation • Customers • Employees • Distributors • Vendors • Competitors • Research & Development • Consultants Source: http://www.clker.com/clipart-9721.html

  5. Idea Screening • First filter • Committee Reviews • Concept test

  6. Business Analysis • Last checkpoint before capital is committed • Look at product and marketing strategy needed to commercialize it • Preliminary figures

  7. Development • “Paper into prototype” • Testing against standards • Work on marketing mix • Team-based analysis • Internet • Customer panels

  8. Market Testing • Company chooses a specific market, based on criteria • Advantages • Disadvantages • Internet

  9. Commercialization • Positioning and launching a product • Most expensive step • Slotting fee • Failure fee

  10. Diffusion of Innovation • Innovators (2.5%) • Early adopters (13.5%) • Early majority (34%) • Late majority (34%) • Laggards (16%) Source: http://tutor2u.net

  11. Diffusion of Innovation • Factors for Adoption • Complexity • Compatibility • Relative advantage • Observability • Trialability • Implications

  12. The Product Life Cycle • Introduction Stage • Growth Stage • Maturity Stage • Decline Stage

  13. Introduction Stage • Create awareness and encourage customers to try the product • Advertising • Primitive demand • Distribution issues • Pricing issues

  14. Growth Stage • Rapid increases in sales • Competition • Advertising • Selective demand • Who is buying? • Distribution

  15. Maturity Stage • Slowing sales and decreasing profits • Marketing strategy • Hold market share

  16. Decline Stage • Sales and profits drop • Marketing strategy • Deletion • Harvesting

  17. Product Cycle Dimensions • Length • Shape • Generalized product • High learning product • Low learning product • Fashion product • Fad product Source: www.your90s.com

  18. 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

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