NG NEW MARKET OFFERINGS
C H A P T E R
After reading this chapter, students should:
Know what challenges a company faces in developing new products and
Know what organizational structures and processes are used to manage new-
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
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.