Lectures Marketing management - Chapter 20: Introducing new market offerings provides students with the knowledge: New product options, challenges in new product development, organisational arrangements, the consumer-Adoption process. Invite you to refer to the disclosures.
CHAPTER 20 INTRODUCING NEW MARKET OFFERINGS Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn Chapter Questions ● What challenges does a company face in developing new ● ● ● ● products and services? What organizational structures and processes managers use to manage new-product development? What are the main stages in developing new products and services? What is the best way to manage the new-product development process? What factors affect the rate of diffusion and consumer adoption of newly launched products and services? © Nguyễn Tiến Dũng Main Contents New Product Options Challenges in New-Product Development Organisational Arrangements The Consumer-Adoption Process © Nguyễn Tiến Dũng New Product Options ● Make or Buy ● Types of New Products ● New to the world ● New to the company ● Improvements of existing products © Nguyễn Tiến Dũng The World’s Most Innovative Companies ● Apple ● IBM ● Google ● Sony ● Toyota ● Wal-Mart ● General Electric ● Honda ● Microsoft ● Starbucks ● Procter & Gamble ● Target ● 3M ● BMW ● Walt Disney ● Samsung © Nguyễn Tiến Dũng Challenges in New-Product Development ● The Innovation Imperative ● New-Product Success ● Incremental innovation ● Disruptive technologies: higher risk, higher return ● iPhone – 3S – – 4S – – 5S ● New-Product Failure © Nguyễn Tiến Dũng New Product Failure ● Shortage of important ideas in certain areas ● Fragmented markets ● Social, economic, and governmental constraints ● Cost of development ● Capital shortages ● Shorter required development time ● Poor launch timing ● Shorter product life cycles ● Organizational support © Nguyễn Tiến Dũng Organisational Arrangements ● Budgeting for New-Product Development ● Organising New-Product Development ● Product managers ● New-product managers who report to category managers ● Growth leaders—a full-time job for its most creative and successful managers ● A high-level management committee ● A new-product department © Nguyễn Tiến Dũng Budgeting for New Product Development © Nguyễn Tiến Dũng Managing the New Product Development Process © Nguyễn Tiến Dũng 10 Lateral Mapping ● Gas stations + food ● Cafeteria + Internet ● Cereal + snacking ● Candy + toy ● Audio + portable © Nguyễn Tiến Dũng 18 Variations on Failure ● Absolute product failure ● Partial product failure ● Relative product failure © Nguyễn Tiến Dũng 19 Concept Testing ● Communicability and believability ● Need level ● Gap level ● Perceived value ● Purchase intention ● User targets, purchase occasions, purchasing frequency © Nguyễn Tiến Dũng 20 Marketing Strategy ● Target market’s size, structure, and behavior ● Planned price, distribution, and promotion for Year One ● Long-run sales and profit goals and marketing-mix strategy over time © Nguyễn Tiến Dũng 21 Product Development ● Quality function deployment (QFD) ● Customer attributes ● Engineering attributes © Nguyễn Tiến Dũng 22 Prototype Testing ● Alpha testing ● Beta testing ● Rank-order method ● Paired-comparison method ● Monadic-rating method ● Market testing © Nguyễn Tiến Dũng 23 Consumer Goods Market Testing ● Sales-Wave Research ● Simulated Test Marketing ● Controlled Test Marketing ● Test Markets © Nguyễn Tiến Dũng 24 Test Market Decisions ● How many test cities? ● Which cities? ● Length of test? ● What information to collect? ● What action to take? © Nguyễn Tiến Dũng 25 Timing of Market Entry ● First entry ● Parallel entry ● Late entry © Nguyễn Tiến Dũng 26 Criteria for Choosing Rollout Markets ● Market potential ● Company’s local reputation ● Cost of filling pipeline ● Cost of communication media © Nguyễn Tiến Dũng 27 The Consumer-Adoption Process ● The stages in the adoption process ● Factors influencing the adoption process © Nguyễn Tiến Dũng 28 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption © Nguyễn Tiến Dũng 29 Factors Influencing the Success of an Innovation ● Readiness to try new products and personal influence ● Characteristics of the Innovation ● Organizations’ readiness to adopt innovations © Nguyễn Tiến Dũng 30 Innovation Diffusion Process © Nguyễn Tiến Dũng 31 Characteristics of the Innovation ● Relative advantage ● Compatibility ● Complexity ● Divisibility ● Communicability © Nguyễn Tiến Dũng 32 ... full-time job for its most creative and successful managers ● A high-level management committee ● A new-product department © Nguyễn Tiến Dũng Budgeting for New Product Development © Nguyễn Tiến Dũng. .. your customers ● Undertake “fly on the wall” research to customers © Nguyễn Tiến Dũng 11 © Nguyễn Tiến Dũng 12 © Nguyễn Tiến Dũng 13 Seven Notions of Innovation ● See the future through the eyes... testing ● Rank-order method ● Paired-comparison method ● Monadic-rating method ● Market testing © Nguyễn Tiến Dũng 23 Consumer Goods Market Testing ● Sales-Wave Research ● Simulated Test Marketing