Ba 315 Chapter 8 New Product Planning

8/14/2019 Ba 315 Chapter 8 New Product Planning

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BA 315 CHAPTER 8

NEW PRODUCT PLANNINGLPC

Many new products that aredeveloped never reach the

market!!!!!!

MOST NEW PRODUCTS FAIL!!!


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product "newness"

The degree of newness to both thebuyer and the seller impacts the

amount of risk taken andinfluences the way the newproduct development process is

managed.


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Essentially there are sixtypes of new products.

New to the world products are products that createentirely new markets.

New product lines are products that represententries into existing markets that are new to the firm.

Line extensions are new products that allow thefirm to' extend its served market by offering different

benefits.


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NEW PRODUCTS Improvements to existing products are

usually designed as replacements forexisting product offerings.

. Repositionings are modest technical

improvements that allow a product tooffer new applications and serve newneeds. 1


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ABSOLUTELY FAILED!!!!

Because of the high probability of newproduct failure and its consequences,most organizations have developedsome formalized system or structure formanaging the new productdevelopment process. Firms use eithera staged (phased)approach or parallel

development approach in new productdevelopment and. the use of teams iswidespread.


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There are seven, not sixstages in new product

development Idea Generation

Idea Screening Conceptual Testing

Business Analysis

Product DevelopmentTest Marketing

Commercialization


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Idea Generation

Idea generation stage includesalternative specifications for productconcepts utilizing end user analysis orproblem analysis. Focus groups anddirect observation provide insights for

product development.


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Idea Screening

BEGIN TO CONFIRM a newproduct concept. Productcandidates are evaluated oninitial estimates of potentialdemand and thechances/barriers to success.Market potential studies,

concept tests, and scoringmodels such as NewProd areused to evaluate the product

concept.


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Conceptual Testing

REMEMBER CHEWS EXAMPLES

AIR ONE MINUTE

MAID

STORY BOARD

QUESTIONAIRE

INTERVIEW

ANALYSIS


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Business Analysis RUN THE NUMBERS

CHECK OUT THE PRODUCEABILITY

MAKE RECOMMENDATIONS

comprehensive view of thefinancial consequences ofintroducing a new product.


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Product Development

converts the concept into a workingproduct by developing the product

architecture; design function, value, andappearance of the product; create anddevelop product specifications; andconsider manufacturing and operational

costs and operational constraints ortradeoffs (POLITICS)


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planning and launch strategy for introducing the

product to the marketplace. Timing of theintroduction, the selection of a branding strategy,and coordinating the marketing program activitiesare all components of the launch strategy.

CHEW SAYS FULL LAUNCH!!!

COMMERCIALIZATION


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portrayed in Fig. 8-5

Is the relationship between productdevelopment programs othermarketing programs andcorporate, and marketing strategy


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WATER BABY by Dan Lauer

The worlds most popular doll of the 1990s.

A blend of condoms and water balloons

were sighted in room 206 ssb where DAN

studied marketing at UMSL


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Why do most new products fail??

ABSOLUTE

RELATIVE

80%+ FAIL

POOR PRODUCT POSITIONING

VAGUE CONSUMER DIFFERENCE


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NEW PRODUCTSHAVE YOU COMPLETED YOUR NET

PRESENT VALUE ASSIGNMENT????

OPPORTUNITYISNOWHERE!!


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ARE WE GOING TO ACHIEVE

OUR PAYOUT AND ROI????

TIME WILL TELL!!!

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1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East

West

North


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LPC IS FINISHED

WE NOW

CONCLUDE

CHAPTER 8 .. ANY

QUESTIONS????


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Ba 315 Chapter 8 New Product Planning

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