DEVELOPING NEW PRODUCTS AND SERVICES 2002 Mc GrawHill

DEVELOPING NEW PRODUCTS AND SERVICES © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE VARIATIONS OF PRODUCTS • Product Line and Product Mix • Classifying Products • Type of User § Consumer goods § Business goods • Degree of Tangibility • Services and New-Product Development © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

CLASSIFYING CONSUMER AND BUSINESS GOODS • Classification of Consumer Goods § Convenience goods § Shopping goods § Specialty goods § Unsought goods © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Classification of consumer goods © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

CLASSIFYING CONSUMER AND BUSINESS GOODS • Classification of Business Goods § Production Goods § Support Goods § Installations § Accessory Equipment § Supplies § Services © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

NEW PRODUCTS AND WHY THEY SUCCEED AND FAIL • What is a New Product? • Newness Compared with Existing Products • Newness in Legal Terms • Newness from the Company’s Perspective • Newness from the Consumer’s Perspective © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Consumption effects define newness © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

NEW PRODUCTS AND WHY THEY SUCCEED AND FAIL • Marketing Reasons for Failures § Insignificant “point of difference” § Incomplete market and product definition (Protocol) § Too little market attractiveness § Poor execution of the marketing mix § Poor product quality or sensitivity § Bad timing § No economical access to buyers © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

NEW-PRODUCT PROCESS © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE NEW-PRODUCT PROCESS • New-Product Strategy Development • Objectives of the Stage: • Identify Markets and Strategic Roles 3 M: Cross-Functional Teams, Six Sigma, and Lead Users © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE NEW-PRODUCT PROCESS • Idea Generation • Customer and Supplier Suggestions • Employee and Co-Worker Suggestions • Research and Development Breakthroughs • Competitive Products © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE NEW-PRODUCT PROCESS • Screening and Evaluation • Internal Approach • External Approach © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE NEW-PRODUCT PROCESS • Business Analysis • Development • Market Testing • Test Marketing © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Six important U. S. test markets © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE NEW-PRODUCT PROCESS • Market Testing • Simulated Test Markets • When Test Markets Don’t Work © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

THE NEW-PRODUCT PROCESS • Commercialization • Burger King’s French Fries: • The Complexities of Commercialization The Risks and Uncertainties of the Commercialization Stage § Slotting fee § Failure fee • Speed as a Factor in New-Product Process © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Marketing information and methods used in the newproduct process © 2002 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin