Giáo trình: Marketing Management_ Chapter 8
Tài liệu giáo trình môn Marketing management_ Chapter " New Product Development", dành cho sinh viên bậc đại học, cao học đang theo học các ngành kinh tế, marketing...
New
Product
Development
Chapter
8
8-1
Key Learning Points
Why new products are important.
Factors affecting new product success
and failure.
Three major approaches to new product
development.
Steps in bringing a new product to market.
Special topics in new product
development.
Impact of the Internet on new product
development.
8-2
Importance of New
Products
New products are critical to the long-
term success of companies.
– Successful companies in many
industries generate a large percentage
of their total sales from new products.
• 50% of sales come from new products
among highly successful firms.
– Companies spend substantial amounts
of money developing new products.
8-3
Figure 8-1:
Sales Impact of
New Products
8-4
Product & Service
Importance of New
Decisions
Products
Key Decisions
2001 Top Spenders in R&D
1. Ford Motor 6. Intel
2. General Motors 7. IBM
3. Motorola 8. Pfizer
4. Cisco Systems 9. Lucent
5. Microsoft 10. Pharmacia
8-5
Figure 8-2:
Comparison of Change in
R&D and Net Sales
8-6
Importance of New
Products
High tech industry: innovation is life.
Over 32,000 new supermarket
products were introduced in 2001.
New products can:
– Revitalize product categories
– Bring significant sales growth.
– Substantially impact a firm’s overall
performance.
8-7
Importance of New
Products
Key issues in new product development:
– What are the sources of new product ideas?
– How should a large list of ideas be screened?
– How do you go from concept to prototype?
– How do you forecast demand?
– What is the ideal organizational form?
– How should a new product be introduced to
the marketplace?
– How can the entire new product development
process be done more quickly?
8-8
Importance of New
Products
What constitutes a new product?
– Classically innovative products.
– New category entries.
– Additions to the product line or line
extensions.
Minor product changes may also be
perceived as “new” by the target market.
– “New and improved” product versions.
– Repositioned products that feature a new use
or benefit.
8-9
Factors Affecting New
Product Success or Failure
New product failure rates vary from
67% to 80%.
– 1990: Success rate was only 10%
– 1995: Improvements in the product
development process increased the
new product success rate to current
levels.
8 - 10
Figure 8-3:
New Product Idea Mortality
Curve: 1990 and 1995
8 - 11
Factors Affecting New
Product Success or Failure
Superior product with unique benefits.
Strong market orientation.
Sufficient time spent on “homework”
phase of development process.
Sharp product definition.
High-quality execution of new product
development process.
8 - 12
Factors Affecting New
Product Success or Failure
Appropriate organizational structure:
multifunctional, empowered teams.
Strong project prioritization process.
Careful and well-funded new product
launch.
Strong support by top management.
Fast time-to-market.
A detailed, multistage, new product
development process.
8 - 13
Figure 8-4:
New Product and Service
Development Process
8 - 14
New Product Development
Each stage is completed
Approaches sequentially.
– Opportunity identification
Classic Linear • Market definition, idea
generation
Approach – Design
• Idea screening, concept
Rugby and prototype creation
– Testing
Approach • Product and ad testing
Target Costing – Introduction
• Trial and repeat purchase
Approach measures are key
– Life cycle management
8 - 15
New Product Development
New products result
Approaches from constant
interaction among
Classic Linear interdisciplinary team
members. Requires:
Approach – Built-in instability
Rugby – Self-organizing project
teams
Approach – Overlapping development
phases
Target Costing – Multilearning
Approach – Subtle control
– Transfer of learning
8 - 16
New Product Development
Approaches Product
development:
– Begins with an
Classic Linear estimate of the target
Approach price that buyers are
willing to pay.
Rugby – Feasibility of meeting
Approach price is assessed.
• Quality vs. cost
Target Costing – Costs are carefully
Approach controlled to meet
target price.
8 - 17
Figure 8-5:
Target Costing Process
8 - 18
New Product Development
Key Phases Two types of new
product concepts:
Concept – Ready-made
Generation – Generated via a
creative process
Concept
• Internal creative
Screening thinking groups
Product Definition – Brainstorming is an
important part of
Forecasting most creative group
processes
Demand • Consultants
8 - 19
Figure 8-6:
Sources of Ready-Made
New Products
8 - 20
