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StrategicStrategic

MarketingMarketing

Chapter # 08Chapter # 08

Planning forNew Products

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PLANNING FOR NEW

PRODUCTS Importance of New Products Customer Driven Process

Steps in New Product Planning

Idea Generation Screening/Evaluating/and Business

Analysis

Product and Process Development

Marketing Strategy and Market Testing

Commercialization

Variation in the Generic Planning Process

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Importance ofNew Products

Innovation at top of potential valuedrivers (Ernst & Young)

Innovation initiatives extend beyond

new goods and services to include ideas,processes, and business practices

Organizations must build a culture ofinnovation

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New Product Planning as a

Customer Driven Process New product classifications:

1. Newness to market solar panel ac

2. Newness to company sufi beuti soap

New product types: Transformational innovations pentium

1

New product category solar panelgeaser

Product line extensions coke, diet coke

Incremental improvements kenwood

cd player with usb

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Finding Customer Value

Opportunities Matching Capabilities to Customer

Value Opportunities

Fit between capabilities and product

offering pakaims offers MBA banking andfinance

Transformational Innovations

new-to-the-world ideas

Customers not always the best guides

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Characteristics ofSuccessful

Innovations

STRATEGICINITIATIVES

Creating an Innovative Culturenokia various models

LeveragingCapabilitiesPepsi vs coke

Selecting The RightInnovation StrategyPepsi launchesMineral water

Making ResourceCommitmentsTrend mobilesfails Developing and Implementing

Effective New Product Processes

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Developing an Innovation

Culture Innovation Workshop for top executives to

develop an innovation plan.

Innovation Statement highlightingobjectives and senior managements role

and responsibilities.

Training programs for employees andmanagers.

Communicate the priority of innovation. Speakers to expose employees to

innovation authorities.

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NEW PRODUCT PLANNING

PROCESSCustomer

NeedsAnalysis

IdeaGeneration

MarketingStrategy

Development

Screening

AndEvaluation

BusinessAnalysis

Product

Development

Commercialization

Testing

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Achieving Cross-Functional

Interaction and Coordination

R & D

MarketingOperations

Finance

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METHODSO

FGENERATINGIDEAS

DirectSearch

TechnologicalInnovation

Alliances/

Acquisition/Licensing

ExploratoryCustomerStudies

NationalPolicy

CreativeMethods

LinkingMarketingand Technology

FacilitatingLead UserAnalysis

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SCREENING,EVALUATING, AND

BUSINESS ANALYSIS

IDEA GENERATION

SCREENING

(fit/feasibility)

CONCEPT EVALUATION

BUSINESS ANALYSIS

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PRODUCT AND PROCESS

DEVELOPMENT

NEWPRODUCTCONCEPT

PRODUCTDEVELOPMENT

ANDUSE

TES

TING

MARKETINGSTRATEGY

DEVELOPMENT

MARKETTESTING

LAUNCH

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PURPOSE OFUSE TESTS

Does it have therequired attributes?

Ideas forimprovements

VerifyClaims

Identify usesituations

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MARKETING STRATEGYAND

MARKET TESTING Marketing Strategy Decisions

Market Targeting

Positioning Strategy

Market Testing Options

Simulated Test Marketing

Scanner Based Test Marketing

Conventional Test Marketing Testing Industrial Products

Selecting Test Sites

Length of the Test

External Influences

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COMMERCIALIZATION The Marketing Plan

Complete marketing strategy

Responsibilities for execution

Cross functional approach

Monitoring and Control

Real time tracking

Role of the Internet Include product performance metrics

with performance targets