MANAGINGNEW PRODUCT

DEVELOPMENT

MANAGING Generating Ideas

Idea ScreeningIDEAS

GENERATING IDEASManaged by

DIG (demand-innovation-growth)

framework

Demand landscape

Opportunity space

Strategic blueprint

GENE

RATI

NG ID

EAS

Studying Competitors

Adopting Creative Techniques

Employees as idea sourceInteracting With Employees

• Costumer …Retailer…..Distributors

• Crowdsourcing

Interacting With Others

Studying competitors

• Attribute listing

• Forced relationship

• Morphological analysis

• Reverse assumption

• New context

• Mind mapping

IDEA SCREENING

Overall

Probability

of Success

Probability

Of

technical

completion

Probability

Of

comercia-

lization

Probability

Of

economic

success

MANAGINGCONCEPT TO STRATEGY

Concept development & testing

Marketing strategy development

Business Analysis

CONCEPT Development

List all concepts

Judge them on

Product

Positioning

Map

Brand

Positioning

Map

CONCEPT Testing

Test using rapid prototyping & virtual reality products

Analyze consumer responses

Measure Product dimentions

MARKETING STRATEGY Development

Divided in 3 parts

Target Market

Planned Product Positioning

Sales & Market Shares

Future Profit Goals

Part 1

describes

Part 2

Outlines for 1st year

Planned Price

Distribution Strategy

Marketing budget

Part 3

Describes for long run

Long-run Sales

Profit Goals

Marketing-mix Strategy

BUSINESS ANALYSISESTIMATING SALES

Sale

s

Time

Sale

s

Time

Sale

s

Time

One-time

Purchased product

Infrequently

Purchased product

Frequently

Purchased product

BUSINESS ANALYSIS

ESTIMATING COST & PROFITS

MANAGINGDevelopment to Commercialization

Product Development

Market Testing

Commercialization

PRODUCT DEVELOPMENT

Step 1: Physical Prototype

Step 2: Costumer tests

• Alpha test- within the firm

• Beta test- customer testing in lab

MARKET TESTINGCONSUMER GOODS

4 Variables• Trial

• First repeat

• Adoption

• Purchase frequency

4 Methods• Sale-wave research (free trials)

• Stimulated test (Made to shop freely by giving money)

• Controlled test marketing (only avail at specific stores)

• Test Market

MARKET TESTINGCONSUMER GOODS

MARKET TESTINGBUSINESS GOODS

• Alpha test

within the firm

• Beta test

observing how customers

use the product

COMMERCIALIZATIONLaunch timing

Launch sequence of places

Target Market Prospects

Introductory Strategy