kotler_mm13e_im_20 - HA TER GCNEWPMARKET OFFERINGS 20...

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NG NEW MARKET OFFERINGS 20 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know what challenges a company faces in developing new products and services. Know what organizational structures and processes are used to manage new- product development Know the main stages in developing new products and services Know what is the best way to manage the new product development process Know what factors affect the rate of diffusion and consumer adoption of newly launched products CHAPTER SUMMARY Once a company has segmented the market, chosen its target customer groups and identified their needs, and determined its desired market positioning, it is ready to develop and launch appropriate new products and services. Marketing should participate with other departments in every stage of new-product development. Successful new-product development requires the company to establish an effective organization for managing the development process. Companies can choose to use product managers, new-product managers, new-product committees, new-product departments, or new-product venture teams. Increasingly, companies are adopting cross- functional teams, connecting to individuals and organizations outside the company, and developing multiple product concepts. Eight stages take place the new-product development process: idea generation, screening, concept development and testing, marketing-strategy development, business analysis, product development, market testing, and commercialization. At each stage, the company must determine whether the idea should be dropped or moved to the next stage. The consumer-adoption process is the process by which customers learn about new products, try them, and adopt or reject them. Today many marketers are targeting heavy users and early adopters of new products, because both groups can be reached by specific media and tend to be opinion leaders. The consumer-adoption process is influenced by many factors beyond the marketer’s control, including consumers’ and organizations’ willingness to try new products, personal influences, and the characteristics of the new product or innovation. 439
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Chapter-by-Chapter Instructional Material DETAILED CHAPTER OUTLINE Companies need to grow their revenue over time by developing new products and expanding into new markets. New product development shapes the company’s future. Improved or replacement products and services can maintain or build sales; new-to-the- world products and services can transform industries and companies and change lives. But the low success rate of new products and services points to the many challenges involved. More and more companies are doing more than just talking about innovation. They are fundamentally changing the way they develop their new products and services.
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This note was uploaded on 11/29/2010 for the course KELLER MM522 taught by Professor Kissi during the Spring '10 term at Keller Graduate School of Management.

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kotler_mm13e_im_20 - HA TER GCNEWPMARKET OFFERINGS 20...

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