CHAPTER 1

“ THE MENU “
Overview
• What is new product ?
• The important of product management
• What is new services, Business-to-business
product and international product?
• The conflicting masters of new product
management
• Breakthrough innovations
What is new product?
• It is a repositioning of an old one
(Telling to the customers it is
something else)?, even with the
same brand name. these may be
considered just new uses, but the
firm’s process of discovery and
development are the same.
What is new product?
• These are goods and services that differ
significantly in their characteristics or intended
uses from products previously produced by the
firm. The first microprocessors and digital
cameras are examples of new products using
new technologies. The first portable MP3 player,
which combined existing software standards
with miniaturized hard-drive technology, was a
new product combining existing technologies.
 Commonly accepted
categories:
1. New-to-the-world product : Product that are
inventions for example Polaroid camera, the
first car, rayon, the laser printer, in-line
skates.
2. New Category entries : Products that take a
firm into a category new to it. Products are
not new to the world; e.g., P&G’s first
shampoo, Hallmark gift items, AT&T’s
Universal Card
Commonly accepted
categories:
3. Addition to product lines: Products that are line
extensions, flankers, etc., in the firm’s current markets:
e.g., Tide Liquid detergent, Bud Light, Apple’s Mac list.
4. Product improvements: Current products made
better, virtually every product on the market today has
been improved, often many times.
5. Repositions: Product that are retargeted for a new
use or applications; the classic is Arm & Hammer
baking soda, which was repositioned several times as
drain deodorant, refrigerator deodorant, etc.
Why Product Development is
Important
• New Products development is the life
blood of companies. The new products
could be a physical tangible product
such as an automobiles, smartphones,
or coffee maker machine. It could also
be services like IT software, new
production process, or a new
marketing concept.
What is new services
• Services management includes a wide
range of management activities, ranging
from the time that there's a new idea for a
service to eventually providing ongoing
support to customers who have acquire the
new product. Every organization conducts
service development, whether it's done
intentionally or unintentionally.
Business to Business Product
• Business to business, also called B to B
or B2B, is a form of transaction
between businesses, such as one involving
a manufacturer and wholesaler, or a
wholesaler and a retailer. Business to
business refers to business that is
conducted between companies, rather
than between a company and individual
consumers.
What is International product
• International Product Development, more
commonly known as IPD or IPDUSA, is an
automotive aftermarket company that
manufactures and sells high-performance
upgrade components for Volvo brand
automobiles. IPD was started in 1963, by
two friends, (Richard Gordon and Garry
Small), who worked at an import car
dealer.
The conflicting masters of new
products management

Quality

Value

Time Cost
The conflicting masters of new
products management
• The new products process must respond
to the three unique inputs- the right
quality product, at the right time, and at
the right cost.
• The three inputs tend to conflict with each
other, though there are synergies too.
• The three inputs contribute to the value of
new products, but in different ways and in
different amounts from project to project.
Breakthrough Innovations
• Breakthrough Innovation takes a
current process or product and
typically provides greater efficiency or
cost effectiveness. It can be
considered Disruptive if that
increased efficiency or cost
effectiveness threatens to make the
competition's business model
obsolete.