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New product

Development

New product

Development

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6000 BC:camel carvan(speed-

8miles/hr)

1600 BC: Chariot(Speed-20mph)

1784 AD: Rail engine(Spped-

10mph)

1880 AD: Steam

Locomotive(100mph)

1939: Aeroplane(400mph)

1959: -Do- 800m h

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When is a new product

new 1.New Technology

2.New Innovations

3.New to the market

4.New to the country

4.New category to thecompany

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5.New Brand

6.New channels of distribution

7.New Package

8.New to a product line

9.Repositioning

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New product

Introduction It will double because:

Technological advance-90%

Changing consumer need-

72%

Shortening PLC-55%

Increasing foreign market

access-53%

Increasing foreign competition-

48%

Increasing labour cost-35%

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Govt. Regulations-35%

Increasing costs-18%

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IdeaIdea

GenerationGeneration

ConceptConceptDevelopmentDevelopmentand Testingand Testing

MarketingMarketingStrategyStrategy

DevelopmentDevelopment

IdeaIdeaScreeningScreening

BusinessBusinessAnalysisAnalysis

ProductProductDevelopmentDevelopment

MarketMarketTestingTesting

CommercializationCommercialization

New Product

Development Process

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New Product

Development Process

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1.Idea Generation

Sources-Customers

Channel Intermediaries

EmployeesCompetitors

Top Mgmt.

Ad Agencies

Marketing Research Firms

Publications

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Techniques:

Attribute Listing

Forced relationship (Trigger

Response)

Morphological Analysis

Need/Problem Identification Brain storming

Synectics

Checklist

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2.Concept Generation &

Evaluation

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Concept Development

& Testing1. Develop Product Ideas into

Alternative Product Concepts

2. Concept Testing - Test the ProductConcepts with Groups of Target Customers

3. Choose the Best One

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Idea vs Concept:

Attribute+Benefit(S)=Product

concept

Form Technology

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Concept Development

Techniques:

1.Attribute Analysis

Dimensinal Analysis

Check List

Gap AnalysisTrade off Analysis

Benefit Analysis

contd.

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Function Analysis

Use AnalysisAttribute Extension

Relative Brand profilePseudo product test

System Analysis

contd.

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Unique Properties

Hierarchial DesignWeakness

Achilles

Hill

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2.Relationship Analysis

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Consumer-Goods Market

Testing

Sales-Wave

ResearchTest offering trail to

a sample ofconsumers in

successive

periods.

Sales-Wave

ResearchTest offering trail to

a sample ofconsumers in

successive

periods.

SimulatedTest Market

Test in a simulatedshopping environment

to a sample ofconsumers.

SimulatedTest Market

Test in a simulatedshopping environment

to a sample ofconsumers.

Standard

Test MarketFull marketing campaign

in a small number ofrepresentative cities.

Standard

Test MarketFull marketing campaign

in a small number ofrepresentative cities.

ControlledTest Market

A few stores that haveagreed to carry newproducts for a fee.

ControlledTest Market

A few stores that haveagreed to carry newproducts for a fee.

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Commercialization

When

Where

W

hom

Product

Price

PlacePromotion

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2 1/2%

Innovators13 1/2%

Early

adopters

34%

Early

majority

34%

Late

majority

16%

Laggards

Time of adoption of innovations

the Basis of

Relative Time of Adoption of

Innovations