MKTG Chapter 11 - MKTG Chapter 11: Deeloping & Managing...

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MKTG Chapter 11: Deeloping & Managing Products New Product Development Process 1. New Product Strategy 2. Idea Generation 3. Idea Screening 4. Business Analysis 5. Development 6. Test Marketing 7. Commercialization Idea Generation Come from both internal & external. Newest- Consultants Idea Screening Point is to eliminate ideas that are inconsistent with organization's strategy. Includes a concept test- point is to find if there is demand "Will you buy? How much are you willing to pay?" Business Analysis Calculate demand, cost, sales, and profitability. Impact of new product? Interaction with our existing products? Benefit to current customers? Affect employees? Development 1. Create a prototype (cost to produce) 2. Sketch marketing strategy 3. Determine manufacturing feasibility Test Marketing
1-2% of the projected market, EXACTLY as you plan to commercialize Commercialization Production, Inventory buildup, Distribution
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Unformatted text preview:costly. Many products still fail here. Innovators First to adopt. Very Important. Highly involved in the product category, knowledgeable. Beta testers Early Adaptors Second to adopt. Respect of others in important. Opinion leaders. Want because of the newness status Early Majority Deliberate. Weigh pros & cons. Rely on group information (hear from early adaptors) show someone else using the product Late Majority Skepticism. Everyone else already has it. "9 out of 10..." Awards, Endorsements Laggards Value Tradition. Don't bother with 5 Characteristics used to predict the rate of acceptance-Complexity -Compatibility -Relative Advantage - Observability - Trialability Product Life Cycle Introduction (Low sales, No Profit) Growth (exponential inc of sales, little profit) Maturity (Sales Plateau, profits stabilize) Decline (decrease in sales & profit)