Transcript New Products and Services Chapter 10
New Products and Services Chapter 10
Product “A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value.”
Products Product item Nike Air Jordan Product line Nike shoes Product mix Nike shoes and clothes
Product Classifications Type of user Consumer goods Business goods Degree of tangibility Durable Nondurable Service
Consumer v. Business Goods Differences based on Effort spent in decision Attributes used in purchase Frequency of purchase
Consumer Goods Convenience goods Shopping goods Specialty goods Unsought goods
Business Goods Production goods Support goods Installations Accessory equipment Supplies Services
What is New?
Newness compared with Existing Products Newness in legal terms Newness from company’s perspective Newness from consumers’ perspective
Why do New Products Fail?
Insignificant “point of difference” Incomplete market and product definition before development starts Protocol Too little market attentiveness Poor execution of marketing mix Bad timing No economical access to buyers
New Product Process New-product strategy development Idea generation Screening and evaluation Business analysis Development Market testing Commercialization
New-product strategy development Identify markets and strategic roles Environmental scanning SWOT analysis
Idea Generation Customer and supplier suggestions Employee and co-worker suggestions R&D breakthroughs Competitive products
Screening & Evaluation Two approaches Internal approach External approach
Business Analysis Last checkpoint before capital is committed Look at product and marketing strategy needed to commercialize it
Development “Paper into prototype” Testing against standards
Market Testing Company chooses a specific market, based on criteria Advantages Disadvantages Simulated test markets
Commercialization Positioning and launching a product Most expensive step Slotting fee Failure fee