Product Planning EssentialsS E C O N D E 0 I T I 0

Kenneth B. Kahn

^M.E.SharpeArmonk, New YorkLondon, England

Contents

Preface xi1. Introduction to Product Planning 3

Product Planning Defined 3Product Planning Roles 4Product, Service, or Both 5What Is a Product? 6

Defining Product by the Nature of Innovation 6Defining Product by the Nature of Market Demand 8Defining Product by the Company's Internal Perspective 12

Defining What Is Meant by "New Product" 16The Growing Emphasis on Product Planning 18So Why Is Product Planning Difficult? 19

2. Strategy and Process 22The Strategic Planning Process 22New Product Strategy 23The Product Development Process ' 25Implementing a Product Development Process 31Evaluating the Product Development Process 32Initiatives to Reduce Cost or Time 37

3. Organizing People 39Department Responsibilities 39Interdepartmental Integration 40Organization Structure 42Team Types 44Distinguishing the Core Team, Ad Hoc Team, and

Extended Team . 48Team Roles 49Factors for Team Effectiveness 50

4. Opportunity IdentificationSources of OpportunitySegmentation of the Market and Technology

Market SegmentationEmpirical Methods for Market Segmentation:

Similarity and Dissimilarity AnalysesTechnology Segmentation

The Product Innovation CharterScreening the PIC

Sample Market-Related CriteriaSample Technology-Related Criteria

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5. Concept GenerationThe Product Concept StatementConcept Generation Techniques

Needs AssessmentScenario AnalysisGroup CreativityAttribute AnalysisRelationship AnalysisLateral Search

Creativity

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6. Concept Evaluation 90Product Development Charter Review 90Concept Testing 90Scoring Models 92Snake Plots 94Financial Analysis 96

ATAR Model 96Applying the ATAR Model to Other Business Contexts 99Expected Commercial Value Approach 101

Summary 105

7. Technical Development 108The Product Protocol 108Themes Underlying "Design for Excellence" Engineering 110Key Techniques to Aid Technical Development: Quality

Function Deployment 119The Theory of Innovative Problem-Solving 124

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The Kano ModelQuantifying the Kano Model

Product Use TestingStructuring a Product Use Test

8. DesignThe Meaning of DesignProduct Design SituationsDesign Disciplines

Industrial DesignGraphic DesignInterior Design

9. Market PlanningThe Situation Analysis

Industry AnalysisCompetitor AnalysisCompany AnalysisCustomer AnalysisSales Analysis

Marketing ObjectivesMarketing Mix Activities

Key Product IssuesKey Distribution IssuesKey Promotion IssuesKey Pricing Issues

Estimating the Marketing Strategy BudgetMarketing Strategy ControlEntrepreneurship Thinking and Business Plan Development

10. Commercialization and LaunchMarket Testing

Pseudo-SaleControlled SaleFull-Scale

Understanding the Launch PhenomenonThe Launch CyclePrelaunch Preparation: Launch Control ProtocolPlotting the Launch ProcessNew Product Forecasting

New Product Forecasting Techniques

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New Product Forecasting Accuracy 183The New Product Forecasting Process 184

11. Life Cycle Management 188The Product Life Cycle 188Strategic Considerations During the Maturity Stage 190Product Families, Product Platforms, and the Product Mix Map 192Brand Management 193

A Brand Equity Framework 195A Brand Decision Framework 201The Brand-Switching Matrix 204

12. Global Issues in Product Planning 210Overview of Global Considerations 210Understanding Global Culture and Language 214Global Product Development Teams 216Sustainable Product Development 217Base of the Pyramid Product Development 218

13. Legal and Public Policy Considerations forProduct Planning 220Intellectual Property 220

Patent 220Trade Secret 222Trademark Protection 222Copyright Protection 223

Product Liability 224Business Entity Formation 225Public Policy Issues 228

Environmental Concerns 228Product Performance and Customer Service 228Morality 230Managing Public Policy Issues 230

14. Product Planning Best Practices 232In Search of Product Development Best Practices 232APQC Benchmarking of Product Development Practices 235PDMA Research on Product Development Practices:

The Comparative Performance Assessment Study (CPAS)or PDMA Best Practices Study 236

PDMA's Outstanding Corporate Innovator Award 238

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The Kahn, Barczak, Moss Best Practices Framework 240The Continued Search for Product Development Best Practices 251

Index 257About the Author 267

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