INTRODUCING

NEW MARKET
OFFERINGS
BY: KOTLER & KELLER
TYPES OF NEW
PRODUCTS
Buy other companies
buy patents from other companies
Buy license or franchise
new-to-the-world products
additions to existing product lines
improvements or revisions of
existing products
 CHALLENGES IN NEW-
PRODUCT DEVELOPMENT
THE INNOVATION IMPERATIVE
NEW-PRODUCT SUCCESS
INCREMENTAL INNOVATION VS.
DISRUPTIVE TECHONOLOGIES
Organizing New-Product
Development
 New-product
venture teams
Department

Stage-Gate Systems Skunkworks

Communities of
Crowdsourcing
practice
NEW PRODUCT DEVELOPMENT DECISION PROCESS
 STAGES IN
DEVELOPING
NEW
PRODUCTS
AND
SERVICES
 GENERATING IDEAS
New-product development process starts with the
search for ideas. Some marketing experts believe we
find the greatest opportunities and highest leverage for
new products by uncovering the best possible set of
unmet customer needs or technological innovation.
 WAYS TO
GENERATE NEW
IDEAS INTERACTING WITH
EMPLOYEES
INTERACTING WITH
OUTSIDERS
STUDYING COMPETITORS
ADOPTING CREATIVITY
TECHNIQUES
 IDEA SCREENING

The purpose of screening is to drop poor ideas as early

as possible because as the product develops costs rise
substantially at each successive development stage.
During the screening the description should state the
product idea, the target market, the competition and
should roughly estimates market size, product price,
development time and costs, manufacturing costs, and
rate of return for the executive committee to review.
 CONCEPT DEVELOPMENT
AND TESTING

Concept development is a necessary but not a

sufficient step for new-product success.
Concept testing of prototypes can help avoid costly
mistakes, but it may be especially challenging with
radically different, new-to-the-world products.
CONCEPT
TESTING
1. Communicability and believability
“Are the benefits clear to you and believable?” If the scores are low, the concept
must be refined or revised.
2. Need level
“Do you see this product solving a problem or filling a need for you?” The stronger
the need, the higher the expected consumer interest
3. Gap level
“Do other products currently meet this need and satisfy you?” The greater the
gap, the higher the expected consumer interest
4. Perceived value
“Is the price reasonable in relationship to value?” The higher the perceived value,
the higher is expected consumer interest.
5. Purchase intention
“Would you (definitely, probably, probably not, definitely not) buy the product?”
6. User targets, purchase occasions, purchasing frequency
“Who would use this product, when, and how often?”
 MARKETING STRATEGY
DEVELOPMENT

the new-product
After a successful concept testing
manager will develop a preliminary strategy plan for
introducing the new product into the market. Without a
defined strategy a company won't know who their
customers are, and won't develop the right products,
and waste money promoting them.
 MARKETING
STRATEGY THREE-PART STRATEGY PLAN
DEVELOPMENT The first strategy plan is to describes the target
market’s size, structure, and behavior; the planned
brand positioning; and the sales, market share, and
profit goals sought in the first few years.
The second part outlines the planned price, distribution
strategy, and marketing budget for the first year.
The third part of the marketing strategy plan
describes the long-run sales and profit goals and
marketing-mix strategy over time.
 BUSINESS ANALYSIS

the proposal’s
This is where businesses evaluate
business attractiveness. Management needs to
prepare sales, cost, and profit projections to
determine whether they satisfy company
objectives. If they do, the concept can move to
the development stage. As new information
comes in, the business analysis will undergo
revision and expansion
PRODUCT DEVELOPMENT
is where the turning target customer
requirements turns into a working
prototype. When the prototypes are
ready, they must be put through rigorous
functional and customer tests before
they enter the marketplace.
MARKET TESTING

Product is ready to be branded with a

name, logo, and packaging and then go into
a market test, if desired. Market testing
can yield valuable information about
buyers, dealers, marketing program
effectiveness, and market potential.
COMMERCIALIZATION

the
Commercialization acquires
company’s highest costs to date that's
why it is important to be aware of
when, where, to whom, and how its
best to market the product.
1. First entry
“first mover advantages”
locking up key distributors and customers
gaining leadership.

2. Parallel entry
firm coincides entry with its competitor’s.

3. Late entry
firm delays its launch
avoid product flaw
learn the size of the market.
CONSUMER
ADAPTION
PROCESS

 Awareness—The consumer becomes

STAGES IN THE aware of the innovation but lacks

information about it
ADOPTION PROCESS Interest—The consumer is stimulated
to seek information about the
innovation.
Evaluation—The consumer considers
whether to try the innovation.
Trial—The consumer tries the
innovation to improve his or her
estimate of its value.
Adoption—The consumer decides to
make full and regular use of the
innovation.
 FACTORS
INFLUENCING THE
ADOPTION PROCESS
Readiness to Try

New Products and

Personal Influence
Characteristics of the Innovation
Organizations’ Readiness to Adopt
Innovations
Thank you for listening!