Marketing management topic 8 introducing new market offering

MARKETING MANAGEMENT Topic Introducing New Market Offerings Kotler Keller Chapter Questions      What challenges does a company face in developing new products? What organizational structures are used to manage new-product development? What are the main stages in developing new products? What is the best way to set up the new-product development process? What factors affect the rate of diffusion and consumer adoption of newly launched products? 20-2 Categories of New Products New-to-the-world  New product lines  Additions to product lines  Improvements to products  Repositionings  Cost reductions  20-3 Factors That Limit New Product Development Shortage of ideas  Fragmented markets  Social and governmental constraints  Cost of development  Capital shortages  Faster required development time  Shorter product life cycles  20-4 Venture Team Cross-functional group charged with developing a specific product or business; Intrapreneurs are relieved of other duties and provided a budget and time frame 20-5 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  20-6 Idea Generation: Creativity Techniques Attribute listing  Forced relationships  Morphological analysis  Reverse assumption analysis  New contexts  Mind mapping  20-7 Variations on Failure    Absolute product failure Partial product failure Relative product failure 20-8 Concepts in Concept Development Product idea  Product concept  Category concept  Brand concept  Concept testing  20-9 Concept Testing Communicability and believability  Need level  Gap level  Perceived value  Purchase intention  User targets, purchase occasions, purchasing frequency  20-10 Marketing Strategy Target market’s size, structure, and behavior  Planned price, distribution, and promotion for Year  Long-run sales and profit goals and marketing-mix strategy over time  20-11 Product Development  Quality function deployment (QFD) Customer attributes Engineering attributes 20-12 Prototype Testing Alpha testing  Best testing   Rank-order method  Paired-comparison method  Monadic-rating method  Market testing 20-13 Consumer Goods Market Testing Sales-Wave Research  Simulated Test Marketing  Controlled Test Marketing  Test Markets  20-14 Test Market Decisions How many test cities?  Which cities?  Length of test?  What information?  What action to take?  20-15 Timing of Market Entry First entry  Parallel entry  Late entry  20-16 Criteria for Choosing Rollout Markets Market potential  Company’s local reputation  Cost of filling pipeline  Cost of communication media  20-17 Consumer-Adoption Process Adoption is an individual’s decision to become a regular user of a product 20-18 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption 20-19 Adopter Categorization Innovators  Early adopters  Early majority  Late majority  Laggards  20-20 Characteristics of an Innovation  Relative advantage  Compatibility  Complexity  Divisibility  Communicability 20-21 [...]... method  Market testing 20-13 Consumer Goods Market Testing Sales-Wave Research  Simulated Test Marketing  Controlled Test Marketing  Test Markets  20-14 Test Market Decisions How many test cities?  Which cities?  Length of test?  What information?  What action to take?  20-15 Timing of Market Entry First entry  Parallel entry  Late entry  20-16 Criteria for Choosing Rollout Markets Market. . .Marketing Strategy Target market s size, structure, and behavior  Planned price, distribution, and promotion for Year 1  Long-run sales and profit goals and marketing- mix strategy over time  20-11 Product Development  Quality function deployment (QFD) Customer attributes Engineering... potential  Company’s local reputation  Cost of filling pipeline  Cost of communication media  20-17 Consumer-Adoption Process Adoption is an individual’s decision to become a regular user of a product 20- 18 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption 20-19 Adopter Categorization Innovators  Early adopters  Early majority  Late majority  Laggards  20-20 Characteristics