New Product Development Strategy - Canisius College
New Product Development Strategy
New Product Management
1. What is a Product?
2. What is Value?
* Economic Value =
1. Form 3. Place
2. Time 4. Possession
New Product Development Strategy
How is Value Added?
Offer - Creating Value
Marketing Enhancing
(MARKETING MIX) &
Support Delivering
Value
New Product Development Strategy
Why Are New Products Needed
External Pressures
(1) Competition
(2) Technology invention
(3) Material Scarcity
(4) Gov't Regulation
Internal Pressures
(5) The objective - Sales growth
(6) Financial goals
Others ??
New Product Development Strategy
Nature of the
Product Life Cycle (PLC)
Cycles Stages
* Product form * Introduction
* Product class * Growth
* Brand * Maturity
* Decline
New Product Development Strategy
Alternative Strategies
Proactive Reactive
* R & D * Defensive
* MKTG. * Imitative
* Entrepreneurial * Responsive
* Acquisition * Second but
* Economies of better scale
New Product Development Strategy
ADVANTAGES
Proactive Reactive
* Pioneer's * R & D Costs
reward = 20% decline
* Economies of * Risk declines
scale
* Lower costs
New Product Development Strategy
New Product Development Process
1. Opportunity Identification
* Market Definition
* Idea generation and selection
2. Design
* Using - Perceptual mapping
- Product positioning
- Concept testing & sales
forecasting techniques
* Finally develop: prototype
basic marketing mix
New Product Development Strategy
New Product Development Process
3. Testing
* Product tests
* Advertising tests
* Pretest market forecasting
* Test marketing
4. Introduction
* Launch planning
* Tracking the launch (panel data)
5. Life Cycle Management
* Market response analysis (MDSS)
* Competitive defense (Defender)
* Innovation at maturity (Recycle)
* Portfolio Management (BCG)
New Product Development Strategy
Steps in Opportunity Identification
1. Identify markets with best opportunities
2. Define these markets
3. Select markets for new products with best match to
your firm
4. Generate suitable product ideas to tap potential of
selected markets
5. Screen and refine ideas
New Product Development Strategy
STEP 1: MARKET PROFILE ANALYSIS
Rating Form: Ranking markets
Profile: Strengths and weaknesses of each market
PROCEDURE
1.List and weigh market-selection criteria
specific to your firm.
2.Rate each market using each criterion
(e.g., scale -2 to +2).
pute weighted sum of ratings.
pare summary ratings and choose best markets.
New Product Development Strategy
Simplified Example: MARKETS
Characteristics BUFFALO TORONTO SYRACUSE
1. Potential 0 +1 +2
Wt. = .4 0 .4 .8
2. Penetrability +2 -1 0
Wt.=.2 .4 -.2 0
3. Reward +1 +2 +2
Wt.=.3 .3 .6 .6
4. Risk +2 +2 -2
Wt.=.1 .2 .2 -.2
WEIGHTED TOTAL .9 1.0 1.2
Note: Sum Wt. = 1.0
New Product Development Strategy
STEP 2A: MARKET DEFINITION
Identify boundaries of potential
markets (size, relationships
with company's position, etc.)
a.) Product-Oriented Approach:
SIC System
New Product Development Strategy
b.) Consumer-oriented Approaches
i)Purchase/Usage (Behavior)
Regression Cross-elasticity of demand
Judgment Similarities in usage
Panel Data Brand switching
New Product Development Strategy
ii) Consumer Judgment
Decision sequence analysis
(protocol; hierarchy)
Perceptual mapping
cluster products/brands into groups
according to consumer perception
of similarities of products/brands
* Combination of and
New Product Development Strategy
STEP 2B: SEGMENTATION
Demo- 1. Age, income, sex, race,
graphic education, occupation
Psycho- 2. AIO, attitudes,
graphic perception, VALS
Usage Rate 3. Heavy/Average/Light
User
New Product Development Strategy
STEP 2B: SEGMENTATION
Preference/ 4. Consumer response
Choice to new
product offerings
Summary -- STEPS 2A & 2B
2A: Identifies products
2B: Identifies markets
New Product Development Strategy
STEP 3: MARKET SELECTION
1.Potential # of existing brands
Market +
Share MARKETING BUDGET
2. Cannibalization of existing products
3. Organizational capability
NOW DECIDE
WHICH MARKETS TO ENTER
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- new product marketing strategy example
- innovation new product development strategy
- new product development process pdf
- new product development process examp
- new product development process stages
- new product development template
- product development strategy examples
- new product development process template
- new product development process flowchart
- new product development process examples
- describe new product development process
- new product development examples