Kotler mm chapter 20 valencia

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Top 10 Concepts

Introducing New Market Offerings

Ma. Regina Paula I. Valencia

+Outline:

Companies need to expand into new markets

Ways to create new products

Innovation, success and failure

New-Product Development Process: Idea Generation

New-Product Development Process: Idea Screening

+Outline:

New-Product Development Process: Development

New-Product Development Process: Market Testing

New-Product Development Process: Commercialization

New-Product Development Process: Consumer Adoption Process

Factors Influencing Adoption Process

+Concept 1

Companies need to expand into new markets Develop new products & services

Why? Maintain or build sales Transform industries & companies Change lives

A change in the way of developing new products

+Concept 1

Companies need to expand into new markets Kotler:

Local: Jollibee

RP Medical: Unilab

+Concept 2

Ways to create new products New or improved existing products

Make/Develop Organic growth Via own laboratories or new-product development firms

Buy/Acquire Buy other companies Acquire patents from other companies Buy a license or franchise from another company

+Concept 2

Ways to create new products Buy/Acquire

Kotler:

Local:

Medical:

+Concept 3

Innovation, success and failure Innovation is necessary

Innovative companies Positive attitude toward

innovation Risk taking Routine innovation process Teamwork Allow people to experiment

and fail

+Concept 3

Innovation, success and failureSuccess

Kotler: Scott Paper Company vs Fort Howard Paper Co.

Local:

RP Medical:

Failure:

Kotler: Google Answers

Local: Rolling Stores (PGMA)

RP Medical: Emilene’s Pharmacy

+Concept 4

New-Product Development Process: Idea Generation Search for ideas

Interaction with various groups Customers employees scientists engineers marketing agencies TM

+Concept 4

New-Product Development Process: Idea Generation Idea Generation

Kotler: P&G Mr. Clean Magic Eraser Local: Rajo Laurel for Plains and Prints RP Medical: DOH Health programs and projects

+Concept 5

New-Product Development Process: Idea Screening

Drop poor ideas as early as possible DROP-error GO-error

+Concept 5

New-Product Development Process: Idea Screening

Kotler: Friends (NBC)

Local: Local Government Unit (deliberation of projects)

RP Medical: DOH Health programs or projects

+Concept 6

New-Product Development Process: Development Finding a good concept that consumers would try

Concept Development – idea concepts

Concept Testing - prototypes

Conjoint Analysis – combining diff. attributes

Marketing Strategy

Business Analysis – attractive?

Estimating Costs and Profits

+Concept 6

New-Product Development Process: Development Product Development

Quality Function Deployment (QFD)

= Consumer attributes (CA) + Engineering attributes (EA) Prototypes

+Concept 6

New-Product Development Process: Development Kotler: Boeing 777

Local: E-jeepney

RP Medical: Herbal medicines - Lagundi Syrup or Capsules

+Concept 7

New-Product Development Process: Market Testing Functional and psychological

performance passed

Brand name and Packaging

4 variables: Trial First repeat Adoption Purchase frequency

+Concept 7

New-Product Development Process: Market Testing Methods:

Sales-Wave Research Simulated Test Marketing Controlled Test Marketing Test Markets

+Concept 7

New-Product Development Process: Market Testing Kotler: Hawaii Coffee Company taste test

Local: Maggi noodles taste test

RP Medical: Phase III Clinical Trial (Praziquantel) in Mindoro, Leyte and Davao

+Concept 8

New-Product Development Process: Commercialization When? (timing)

Where? (Geographic strategy)

To whom? (Target-market prospects)

How? (Introductory market strategy)

+Concept 8

New-Product Development Process: Commercialization Kotler: Apple iPod

Local: Sunsilk Shampoo

RP Medical: Charantia

+Concept 9

Consumer Adoption Process Adoption – decision to become a regular user

Consumer adoption Consumer loyalty

Innovation diffusion process Spread of idea from source to ultimate users

5 stages: Awareness Interest Evaluation Trial Adoption

+Concept 9

Consumer Adoption Process Kotler: Electric dishwasher

Local: Electrolux, Joy dishwashing liquid (as seen in commercials)

RP Medical: Alaxan free trial, Medreps giving free trial drugs

+Concept 10

Factors Influencing Adoption Process Readiness

Innovators, Early adopters, Early majority

Late majority, Laggards

Personal Influence

Characteristics of innovation Relative advantage,

Compatibility, Complexity

Divisibility, Communicability

+Concept 10

Factors Influencing Adoption Process Kotler: Nike (skaters)

Local: Kris Aquino endorsements

RP Medical: Belo celebrity endorsements

+Summary

Companies need to expand into new markets

Make or Buy

8 stages of new product development Idea generation Idea screening Concept Development and Testing, Marketing Strategy

Development, Business Analysis, Product Development Market Testing Commercialization

+Conclusion

Companies need to grow their revenue over time by developing new products and expanding into new markets

Keep the supply of ideas coming

+Top 10 Concepts

Introducing New Market Offerings

Ma. Regina Paula I. Valencia