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Developing and Launching New Offerings – Chapter 14 (part 1). Chris Freeman PADM 7040. Background. Aggressive competition among non-profits leads to possibility that the organization becomes obsolete.
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Developing and Launching New Offerings – Chapter 14 (part 1) Chris Freeman PADM 7040
Background • Aggressive competition among non-profits leads to possibility that the organization becomes obsolete. • “A well-managed organization cannot survive merely on chance or insight. New offerings must continually be generated” (Andreasen & Kotler, 2003, p. 350). • A system for the generation of new offerings must be put in place. (Andreasen & Kotler, 2003)
Offer Development • Several strategies exist for offer development: • “Playing it safe” • Sell existing offerings to new markets • “Building on what works” • New, similar offerings sold to new and existing markets • “Branching out” • Move the organization in new directions and into new markets (Andreasen & Kotler, 2003)
Mission Creep • “While it is important…to evaluate new ideas…to keep the organization growing…there is the real danger that projects…are not good fits for organizations”(Andreasen & Kotler, 2003, p.353). • Mission creep leads to need for new staff and skills not “in synergy” with organization. • Loss of focus is unappealing to potential donors • Ask often: “Is [the new program] consistent with the mission?”(Andreasen & Kotler, 2003, p.353). (Andreasen & Kotler, 2003)
The Development Process • Idea generation • Idea screening • Concept development and testing • Marketing strategy formulation • Business analysis • Offer development • Market testing • Commercialization • Launch (Andreasen & Kotler, 2003, p.354)
Idea Generation • Don’t rely on chance or past, successful concepts: • Commit to systematic development process • Designate organizational development leader • Formalize the process • Encourage creativity (Andreasen & Kotler, 2003)
Idea Screening • Not all ideas are good but it’s less costly to drop a good one than to develop a poor one. Screening is vital. • Develop a screening committee and meet often • Have formal, baseline criteria and “weight” each criterion • Be prepared for meetings to judge each idea objectively (Andreasen & Kotler, 2003)
Development and Testing • Grow ideas into marketable concepts: • One, generic idea can take many potential forms • Create a marketable image • Test the image through market research: • Surveys • Conjoint analysis (Andreasen & Kotler, 2003)
Marketing Strategy Formulation • Develop an offering’s marketing strategy focusing on: • Structure, intended positioning, and short-term/impact goals • Intended price, distribution strategy, and marketing budget • Long-term goals and marketing mix strategy (Andreasen & Kotler, 2003)
Business Analysis • Carefully estimate offering costs and revenues. • Use realistic hypotheticals to gauge financial feasibility of offering. (Andreasen & Kotler, 2003)
Offer Development & Market Testing • Develop real marketing campaign materials and test on consumers. • Introduce the offering in “authentic consumer setting” (Andreasen & Kotler, 2003, p.361) and gauge response. • Provides insight into both project feasibility and best marketing strategies. (Andreasen & Kotler, 2003)
Commercialization • Before launching new program, ask: • When? • Where? • To whom? • How? • Assign organizational responsibility. • Develop formal schedule of marketing tasks. (Andreasen & Kotler, 2003)
