supporting innovation

Kotler - Koller
CHAPTER 15
Introducing New Market
Offerings
 New-product development shapes the
company’s future.

Improved or replacement products and

services can maintain or build sales; new-
Product- to-the-world products and services can
transform industries and companies and
Development- change lives. Companies that challenge
industry norms and apply imaginative
solutions will delight and engage
Technology consumers.

Marketers play a key role in new-

product development by identifying and
valuating ideas and working with R&D
and other areas in every stage of
development.
 Important Question in this Chapter
1. How can new products be categorized?
2. What challenges does a company face in developing new products and services?
3. What organizational structures and processes do managers use to oversee new-
product development?
4. What are the main stages in developing new products and services?
5. What is the best way to manage the generation of
new ideas?
6. What is the best way to manage concept and strategy
development?
7. What is the best way to manage the
commercialization of new products?
8. What factors affect the rate of diffusion and
consumer adoption of newly launched products and
services?
The product we are trying to develop so far is the business
development of the livestock sector. This is motivated by the
need for good protein intake primarily for families in urban
areas. Provision of protein with good standards has become
one of the main needs for urban families to improve the
quality of life of the community.

Meanwhile, the provision of protein for the fulfillment of

these needs is felt not optimal. Protein products available on
the market (in the form of meat, eggs, fish, and other protein
products) are ready-to-eat or processed. Very rarely found
products that have good quality and still in the form of fresh
raw materials. In addition, the manufacturer / distributor of
the product sells its products through hypermarket blends
such as carefour, etc., which is similar to the general market
form.

Seeing these potentials and problems, our company tries to

take advantage of these opportunities to bring new products
to be discussed in this percentage.
 1. New-Product Options of PT. Manajemen Industri Madani
• New-to-the-world >> the novelty of the offered product consists of two bumps, which
are product quality standards guaranteed through international market standards and
novelty of marketing and distribution system (inter messaging system) that is directly
connected through the customer's cell phone gallery.

Cost New-to- • New aproduct lines >> the planned product is a product targeting the middle family
reductions the-world market with the consideration that families in urban areas have made quality products as
part of their needs and healthy lifestyles. In addition, this product is launched to meet
the need for foodstuffs (meat, fish, eggs, and other processed foods) derived from the
New traditional culinary habits of the community.
Repositionings product
lines • Addition >> in addition to innovation in terms of quality and marketing system, this
product is also marketed through a special marketing outlet, which we call the "makassar
protein center" as the main market that provides high quality protein.
Improvements Additions
• Improvement >> stages of development is done through research and development as an
effort to maintain product quality assurance, improvement of marketing system through
introduction of internet market system, as well as human resource development through
training and courses.

• Repositionings >> This product is a repositioning of traditional market form, change of

Categories of New Products product quality standard, and from renewal of marketing system by utilizing information
(Ketler, Keller) technology.

• Cost reductions >> this product offers cost savings on the part of consumers arising from
transportation costs, time savings, and risk reduction on the quality of goods to be
purchased.
2. Challenges does a company face in developing new
products and services
• Shortage of ideas
• Fragmented markets
• Social and
governmental
Factors That constraints
Limit
New Product • Cost of development
Development • Capital shortages
• Faster required
development time
• Shorter product life
cycles
3. Organizational structures and processes do managers
use to oversee new-product development
Economy
To achive and maintain profitability,
businesses have found that they Finance
must produce quality product,
operate efficiencly, and be social
responsible and athical in dealing
Owners Costumers
with costumers, employes, investors,
government regulators, and the
community, they called a
stakeholders.
Management Marketing
The particural activity business: Employes
• Management
• Marketing
Social responsibility Legal, Policy, and
• Finance and ethics Regulatory Forces
 4. The main stages in
developing new products and services
A venture team is a cross-functional group charged with developing
a specific product or business; intrapreneurs are relieved of other
duties and provided a budget and time frame.

Desired Desired Team Potential

Level of Diversity
team level of member for
interest in of team
leadership leader skills and personal
concept members
style expertise expertise reward

Criteria for Staffing Venture Teams

(Ketler, Keller)
The New Product Development Decision Process
(Ketler, Keller)
 steps we take in our company for
product and service development
• See the future through the eyes of your customer >> the product is the basic
need for costumers.
• Intellectual property and brand power are key assets >> the product developt
base on research.
• Use digital technology to create tools for customers >> the product is more closer
to the customer by using information technology that improve connectivity
between producer and consumer.
• Build a championship team >> systems built through this product do not position
consumers passively, but become part of the subject of cooperation through
membership cards with various facilities and facilities, and continues to develop
the potential of human resources and improvement of personnel management
system.
• Innovation is a state of mind >> the company accommodates new ideas and new
strategies in product development from various sources.
• Speed is critical, so push your organization >> the main principle of service not
only focuses on the quality of the goods being diatawarkan, but also
mengutaman accuracy and efficiency of time distribution service through
service operational standards.
• Partner up if you’re not the best >> principles of cooperation and collaboration
are conducted for information exchange, exchange of innovation and
knowledge, and capacity building.
5. The way to manage the generation of new
ideas

Allow time
Make Undertake
off for
Run informal customer Customers “fly on the
technical
sessions with brainstorming wall”
people to Survey
customers a part of research to
putter on pet
plant tours customers
projects

Ways to Find Great New Ideas

Inovation and Creativity
Techniques Improvement

• Attribute listing
• Forced relationships
• Morphological analysis
• Reverse assumption
analysis
• New contexts
• Mind mapping
6. The best way to manage concept and
strategy development
Important issueses;
• Product idea ; the mind map dan process of product
• Product concept ; guide lines steps for action of idea
• Category concept ; operationalization of the system
and the division of tasks and roles in accordance
with the set of work and standards
• Brand concept ; finalization of product prototype
and branding concept
• Concept testing ; introduction and survey of
customer responses about the product
Marketing
Strategy
• Target market’s size, structure, and
behavior
• Planned price, distribution, and
promotion for year one
• Long-run sales and profit goals and
marketing-mix strategy over time
7. The best way to manage the commercialization
of new products

• Quality function
deployment (QFD)
– Customer attributes
– Engineering attributes
 8. Factors affect the rate of diffusion and consumer
adoption of newly launched products and services
a. Consumer Goods Market
₋ Sales-Wave Research
₋ Simulated Test Marketing
₋ Controlled Test Marketing
₋ Test Markets

b. TestingTiming of Market Entry

₋ First entry
₋ Parallel entry
₋ Late entry
 Stages in the
Adoption Process
Market
potential Awareness

Company’s
local reputation Adoption Interest
Criteria for
Choosing
Rollout
Cost of filling Markets
pipeline

Cost of Trial Evaluation

communication
media