Developing New Products Invention versus Innovation Invention is
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Developing New Products
Invention versus Innovation • Invention is the discovery of new ideas and methods • Innovation occurs when an invention is commercialised by bringing it to market
What is a new product? Additions to existing lines Product replacements New Products New-to-the-world products New product lines
Dyson This new product replacement from Dyson is an improvement on an existing product.
Creating and nurturing an innovative culture Reward success heavily Clear messages about the role and importance of innovation Tolerate failure Innovative culture Back words with resources Give time Off or ‘turn a blind eye’ to people working on pet projects Be accessible Resist automatic nay-saying
Organising effectively for new product development Project teams Product and brand managers New product departments and committees Importance of teamwork
Organising effectively for new product development Role of marketing directors Encourage teamwork Improve the provision of marketing information to R&D Take R&D people out of lab Develop informal relationships with R&D Learn about technology Formalise the product development process Role of Senior management Make organisational design changes Show a personal interest in new product development Provide strategic direction Encourage teamwork Increase resources Understand marketing's importance
The eight-stage new product development process New product strategy Idea generation Screening Concept testing Business analysis Product development Market testing Commercialisation New products
Nike continues to be at the forefront of the specialist shoe market.
Sources of new product ideas Internal • • • scientists engineers marketers sales people designers Brainstorming may be used. External • consumers/customers • competitors • distributors Marketing research may be used.
Concept testing Techniques. • Group discussions. • Quantitative research using action standards. • The scenario method.
Becks New concepts like the introduction of Beck’s alcohol-free larger will be tested before development and launch.
Product development Key issues. • • • Multi-disciplinary project teams. Target costing. Time to market. Marketing’s role. Product testing.
Market testing Techniques. • Simulated market test. • Test marketing.
Percentage adopting Diffusion of an innovation 2. 5% Innovators 13. 5% Early adopters 34% Early majority 34% Late majority Time 16% Laggards
How the characteristics of a product affect its rate of diffusion
Product replacement strategies Product No change Marketing No change Re-mix Re-merchandising New/market segment Intangible positioning Modified Technology change Facelift Inconspicuous technological substitution Relaunch Conspicuous technological substitution Tangible positioning Neo-innovation
Core Reading Core reading to support this topic can be found in Chapter 11 of your recommended text
- Developing new products and services
- Creativity innovation and invention
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- What is a stagnator
- Appositional relationship in entrepreneurship
- Innovation and invention
- Invention innovation diffusion
- Mysite.socccd
- Incremental innovation vs disruptive innovation
- Developing service products core and supplementary elements
- Lovelock flower of service
- The flower of service model
- Chapter 11 developing and managing products
- Developing and managing products
- Developing and managing products
- Developing and managing products
- Systematic innovation of products processes and services
- Invention of new means through mental combinations
- Functional and innovative products examples