Ch20 - New Market Offerings

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INTRODUCING NEW MARKET OFFERINGS

Ralph W. TancoAteneo Graduate School of Business

Top 10 Concepts

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Outline: New Market Offerings:

1. Ways of introducing New Products2. Challenges in New-Product

Development3. Most important success factor.

(What?) 4. Reasons for New Product Failure 5. Organizational arrangements for

product development

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Outline:New Market Offerings

6. Budgeting for a new product development

7. Organizing New-Product Development

8. Managing the development process9. Consumer Adoption10. Characteristics of innovation

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Concept 1:

Ways of introducing new products

Make them

Buy them

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Innovation Imperative Must have constant improvement and

innovations

Incremental innovation Tweaking existing products for new

customers

Concept 2:

Challenges in a new product development

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Concept 3:

Most important success factor

A unique and superior product

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Concept 4:

Reasons for New Product Failure

Shortage of important ideas in some areas

Fragmented markets Social and governmental constraints Cost of development Capital shortages Shorter required development time Shorter prduct life cycles

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Concept 5:

Organizational arrangements

Commonly uses customer-driven engineering

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Concept 6:

Budgeting for a new product

Financing as many projects as possible

Conventional percentage-of-sales figure

Spend what the competition spends

Working backwards

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Concept 7:

Organizing New-Product Development

Use of new product managers Use of stage gate system

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Concept 8:

Managing the development process

Idea Generation Idea Screening Concept development and testing Marketing strategy development Business analysis

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Concept 8:

Managing the development process

Product development Market testing Commercialization

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Concept 9:

Consumer adoption

Awareness Interest Evaluation Trial Adoption

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Concept 10:

Characteristics of the innovation

Relative advantage Compatibility Complexity Divisibility Communicability

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Summary: New Market Offerings:

1. Two ways to introduce the product

2. Obstacles in introducing new products

3. The golden rule of success. 4. Reasons for New Product Failure 5. The ideal organizational structure

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Summary:New Market Offerings

6. Ways of budgeting for new products

7. Organizing New-Product Development

8. Managing the development process9. Consumer Adoption10. Characteristics of innovation

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My Conclusion: New Market Offerings

Not easy to create new Products

You have to be creativeResourceful, cautious

And ready to fail!