Escolar Documentos
Profissional Documentos
Cultura Documentos
Self-Introduction S lf I t d ti
Course: New Product Development Lecturer: Mr.Eng Leaphea, MBA Tel: 012 722076 Email: engleaphea@gmail.com rikreaymagazine (skype) Facebook.com/eng.leaphea
Working Experiences
02-04-2010 to 02-12-2010 10-12-2010 to Present
Working Experiences g p
2005 Present Lecturer Human Resources University
Course: Basic Marketing; B M k Marketing Management; Public Relation; Strategic Marketing; New Product Development. Human Resource Management
28/03/2012
Grading
Your course grade will be determined as follows:
20% on your attendance; 15% on
the quality of your individual assignment solutions 15% on the midterm test; and 50% on the final exam.
28/03/2012 7
Course Outline
Week 1 Description Course Introduction Chapter01: New Product in Global Marketing New Products Why New Product Succeed? Risks of New Product Development k f d l NEW PRODUCT LAUNCHES Chapter01: New Product in Global Marketing CHALLENGES IN NEW PODUCT DEVELOPMENT y products f fail? Why do new p Several factors tend to hinder new-product development IDENTIFYING NEW PRODUCT IDEAS The following questions are relevant to this task: Hours 3 hours
3 hours
28/03/2012
Course Outline
Week 3 Description Chapter02: New Product Development Process ORGANIZATIONAL ARRANGEMENT Organizing new-product development MANAGING THE DEVELOPMENT PROCESS: IDEAS Ten Ways to Create New-Product Ideas Idea Screening screening ideas, the company must avoid two types of errors MANAGING THE DEVELOPMENT PROCESS Concept Development and Testing Chapter02: New Product Development Process Concept Testing Marketing Strategy Business Analysis Hours 3 hours
3 hours
28/03/2012
Course Outline
Week 5 Description Chapter03: Overview in New Product Development Creating New Products CORPORATE RESPONSE MARKETING RESPONSE VARIABLES AFFECTING NEW PRODUCT DEVELOP Change and Complexity Invisibility Expense Control Hours 3 hours
Course Outline
Week 6 Description Hours 3 hours
Chapter04:Design
What is Design? The Role of Design in the New Products Process Contributions of Design to the New Products Process Product Architecture 3 hours
Chapter04:Design ( continue) g g g Managing the Interfaces in the Design Process Participants in the Design Process Improving the Interfaces in the Design Process Computer-Aided Design and Design for Manufacturability
28/03/2012
11
Course Outline
Week 8 Description Hours 3 hours
Speed to Market 1- Techniques for Speeding Time to Market 2- Overall Principles and Guidelines The Role of Top Management during Development 9 Chapter05: Special Issues in Development Functional Interface Management 1- Managing the Interfaces g g 2- Overall Principles and Guidelines Strategies for Global Product Innovation 3 hours
28/03/2012
12
Course Outline
Week 10 Description Hours 3 hours
Chapter06: Product Use Testing What Is Product Use Testing Is Product Use Testing Really Necessary? g g p 1- Regarding Competitors Reactions 2- Customer Needs Are Complex Sets 3- Can We Deliver A Total Quality Product? P d t?
28/03/2012
13
Course Outline
Week 11 Description Hours 3 hours
Chapter06: Product Use Testing Knowledge Gained from Product Use Testing Beta tests Gamma Testing g Diagnostic Information Decisions in Product Use Testing How Sh ld W R h the User H Should We Reach th U Group?
28/03/2012
14
Course Outline
Week 12 Description Hours 3 hours
Chapter06: Product Use Testing How Much Explanation Should We Provide? How Much Control over Product Use Should There Be? Special Problem Be Alert to Strange Conditions Strategies f Gl b l P d t St t i for Global Product Innovation
28/03/2012
15
Course Outline
Week 13 Description Hours 3h hours I. Setting The Strategic Givens Revisiting th Strategic Goals R i iti the St t i G l
14
28/03/2012
16
Course Outline
Week 15 Description VI. Product Positioning VII. Creating Unique Value for the Chosen Target g VIII. Branding and Brand Management IX. Packaging Number of weeks Total hours Credits 15 weeks 45 hours 3 Hours 3 hours
28/03/2012
17
Chapter
New Product in Global Marketing
28/03/2012 18
-----------------------------What Is a New Product ? New products can be new to the marketplace or new to a company. A new product for a company may or may not be a part of an existing product line. A p product line is a g group of p p products that are closely related because they function in a similar manner, are sold to the same customer groups, are distributed through groups the same dealers, or all within certain price ranges. g
By: Eng Leaphea, MBA
28/03/2012 19
NEW PRODUCTS
New products can be classified as: New-to-the-world products: New product lines: Additional to existing product lines: Improvements in or revision to existing products: d t Repositioning: p g Lower cost products:
By: Eng Leaphea, MBA
28/03/2012 20
These are:
Introducing a unique but superior product product. Having market knowledge and marketing proficiency. proficiency Having technical and production synergy and proficiency proficiency. Being in a large, high-need growth market. Avoiding introducing a high priced high-priced product with no economic advantage.
By: Eng Leaphea, MBA
28/03/2012 21
28/03/2012
22
Costs will continue to rise. Competition will intensify, particularly from foreign producers. The life of products is likely to become shorter as competitors duplicate existing products more quickly. The need for a more rapid pace in new product development may not be met by the development of new technologies. Markets will continue to be fragmented, requiring companies to aim new products as smaller target segments. Investment risks are likely to increase because of high interest rare.
By: Eng Leaphea, MBA
28/03/2012 23
NEW PRODUCT LAUNCHES --------------------- Evidence of Market Interest A Accurate M k t E l ti t Market Evaluation Good Judgment in Development Reasons for Success Position, Promotion, and Pricing
28/03/2012
24
----------------------
Shortage of important ideas in certain areas Fragmented markets Social and governmental constraints Cost of d f development l C it l shortages Capital h t Faster required development time
By: Eng Leaphea, MBA
28/03/2012 27
IDENTIFYING NEW PRODUCT IDEAS -------------Major sources of new-product ideas include internal sources customers competitors sources, customers, competitors, distributors and suppliers, and others It can pick the brains of its executives executives, scientists, engineers, manufacturing, and salespeople. salespeople Some companies have developed successful entrepreneurial programs that entrepreneurial encourage employees to think up and p p develop new-product ideas.
By: Eng Leaphea, MBA
28/03/2012 28
Good new-product ideas also come from watching and li t i t customers. Th company can d listening to t The analyze customer questions and complaints to find new products that better solve consumer problem problem. Competitors are another good source of newp product ideas. Finally, distributors and suppliers contribute many g good new-product ideas Other idea sources include trade magazines, shows, and seminars; government agencies; new-product consultants; advertising agencies; marketing l d k research firms; university and commercial laboratories; and inventors inventors.
By: Eng Leaphea, MBA
28/03/2012 29
An organizational design for addressing these requirements is a new-product development. the function of such a department is four fold To ensure that all relevant information sources are continuously tapped for new-product ideas; new product To screen these ideas to identify candidates for investigation; To investigate and analyze selected new-product ideas; To ensure that the organization commits resources to the most likely new-product candidates and its continuously involved in an orderly program of newproduct introduction and development development.
By: Eng Leaphea, MBA
28/03/2012 30
Assignment
Find out a company in Cambodia, then do Cambodia as follows:
List their products they are operating; Analyze their product Lines
28/03/2012
32
Chapter 2 h p
New Product Development Process p (NPDP)
By: Eng Leaphea, MBA
28/03/2012 33
ORGANIZATIONAL ARRANGEMENT
New-product development requires senior management to define business domains, g , product categories, and specific criteria. Budgeting for new-product development Senior management must decide how much to budget for new-product development. R&D outcome are so uncertain that it is difficult to use normal investment criteria.
By: Eng Leaphea, MBA
28/03/2012 34
Idea Generation
The new-product development process starts with the search of ideas ideas. New-product ideas can come from interacting g p g y with various groups and from using creativity generating techniques. Interacting with Others Ideas for new products can come from customers, scientists, competitors, employees, channels members and top management members, management.
By: Eng Leaphea, MBA
28/03/2012 36
Use iterative rounds: a group of customer in one room focusing on identifying problems, and a group of your technical people i the next room, li h i l l in h listening and i d brainstorming solutions. The proposed solutions are then tested immediately on the group of customers. y g p Set up keyword search that routinely scans trade publications in multiple countries for new-product announcements and so on. d Treat trade shows as intelligence missions, where you view all that is new in your industry under one roof roof. Have your technical and marketing people visit your suppliers labs and spend time with their technical pp p people-find out what is new. Set up an idea vault, and make it open and easily accessed. All d Allow employees t review th id l to i the ideas and d 28/03/2012 constructively to them. 38 add
Idea Screening
A company should motivate its employees through rewards to submit their new ideas to an idea manager. g Idea should be written down and reviewed each week by an idea committee. The company then sorts the proposed id h d ideas i into three group: h promising ideas, marginal ideas, and rejects. Each promising idea is researched by a committer member, who report back to the committee.
28/03/2012 39
28/03/2012
41
Concept Development
A product idea can be turned into several concepts. Th fi The first question i Wh will use this product? i is: Who ill hi d ? The powder can be aimed at infants, children, teenagers, teenagers young or middle aged adults or older middle-aged adults, adults. Second, Second what primary benefit should this product provide? Taste, nutrition, refreshment, energy? Third, when will people consume this drink? Breakfast, midmorning, lunch, mid afternoon, dinner, late evening?
By: Eng Leaphea, MBA
28/03/2012 43
Concept Testing p g
Concept testing involves presenting the product concept to appropriate target consumers and getting their reactions. The concept can be presented symbolically and physically. However, a more concrete and physical presentation of the concept will increase the reliability of the concept test test. Today, some marketers are finding innovative ways to make product concepts more real to consumer subject. Many companies routinely test new-product concepts with consumers before attempting to turn them into actual new products. products
28/03/2012
45
After receiving information, researchers p y g measure product dimensions by having consumers respond to the following q questions: Communicability and believability Need level Gap level
P Perceived value i d l Purchase intention User targets, purchase occasions, purchasing frequency
By: Eng Leaphea, MBA
28/03/2012 46
Marketing Strategy
Marketing strategy development is the designing an initial marketing strategy for a new product based on the product concept p p p
By: Eng Leaphea, MBA
28/03/2012 47
Following a successful concept test, the newproduct manager will develop a preliminary marketing-strategy plan for introducing the new product into the market. The plan consist of three steps: The first part describe the target markets size, p g , structure, and behavior; the planned product positioning; and the sales, market share, and profit goals sought in the f l h h first f few years. The second part outlines the planned price, distribution strategy, and marketing budget for the strategy first year. The third part of the marketing strategy plan describes the long-run sales and profits goals and 28/03/2012 48 marketing-mix strategy over time
Business Analysis
Business analysis involves a review of the sales, costs, and profits projections for a new product to find out whether they satisfy the companys objectives. company s If they do, the product can move to the p product development stage. p g To estimate sales, the company might look at p y g the sales h h l history of similar products and f l d d conduct surveys of market opinion
By: Eng Leaphea, MBA
28/03/2012 49
It can then estimate minimum and maximum sales to assess the range of risk. After preparing the sale forecast forecast, management can estimate the expected costs and profits for the product including product, marketing, R&D, operations, accounting and finance costs costs. The company the sues the sales and costs figures to analyze the new products product s financial attractiveness.
By: Eng Leaphea, MBA
28/03/2012 50
28/03/2012
51
CORPORATE RESPONSE
P d ti Production C Capabilities biliti
MARKETING RESPONSE
Match with Existing Product Lines Price and Quality Di t ib ti Distribution Patterns Seasonality
By: Eng Leaphea, MBA
28/03/2012 54
Negative conformity typically starts with a directive from someone. Second i th t S d is the customer i always is l right point of view. Third, there is a tendency in business to aim for what seems to be the safe bet.
The last major conformity issue of this yp p ( ) type is to adapt to (MIS).
28/03/2012
58
Invisibility
Where do we begin to make visible such organization quality as communication communication, teamwork, leadership, force multipliers, roles within the work society, and y structural interaction? l What about the invisible structure h b h bl associated with technology, markets, economics, economics and systems that is virtually impossible to model in the development of new products?
By: Eng Leaphea, MBA
28/03/2012 59
Expense Control p
The creation of new high technology g gy products is very expensive process! Most likely there will be a need to network computer and provide for p p electronic information transfer.
28/03/2012
60
Can Do Ca o
Experience shows that this attitude will grow and develop over time if people dd l ti l
28/03/2012
Think highly of themselves. Perform their work because they are internally motivated. Strive to realize a driving vision. Establish short-, intermediate-, and longrange goals. Develop a realistic appraisal of progress toward achievement of their goals Take ti T k time to h t have f fun.
62
PATHS TO SUCCESS
Winning Ways of Doing New Product Development
Make new product development a control p process. Keep an eye on the world Involve all relevant people from th start. f the t t Assemble and act out information in concert. Have a representative object of the end product in view. Learn how to make decision quickly. Work with competitive tools and methods. Entrust execution to competent people. t t l In the event of problems, adjust only the effected areas. Maintain the can do vitality in the y organization
28/03/2012
63
Chapter 4 p
Design D ig
28/03/2012 64
Course Outline
Week 5 Description Hours 3 hours
Chapter04:Design
What is Design? The Role of Design in the New Products Process Contributions of Design to the New Products Process Product Architecture 3 hours
Chapter04:Design ( continue) g g g Managing the Interfaces in the Design Process Participants in the Design Process Improving the Interfaces in the Design Process Computer-Aided Design and Design for Manufacturability
28/03/2012
65
What Is Design? g
the synthesis of technology and human needs into manufacturable products.
What is design? One writer define it as
In practice, however, design as a term has many uses. uses To the car companies it can mean the styling companies, department. To a container company it means their customers packaging people To a customer s people. manufacturing department it most likely means the engineers who set final product specifications. g p p
By: Eng Leaphea, MBA
28/03/2012 66
28/03/2012
67
28/03/2012
68
Product Architecture
Product architecture has been described as the process by which a customer need is developed into a product design. This is a critical step in moving toward a product design as solid architecture hi improves i ultimate li product d performance, reduces the cost of changing the product once it is in production, and can speed the product to market. A process for product architecture development can be applied to make sure the products design will be in keeping with customer needs and, ultimately, and ultimately the product innovation charter
By: Eng Leaphea, MBA
28/03/2012 69
1- Create the Product Schematic. The schematic shows the components and functional elements of the product and how they are interconnected. Several y alternative schematics may be developed and explored at this stage. 2 Cl t th S h 2-Cluster the Schematic El ti Elements. H t Here the chunks (or modules) are defined. In the figure, input, disk, output, and power chunks are identified. Interaction among the chunks should be simple to changes can b easily effected, and one should t k be il ff t d d h ld take advantage of manufacturing capabilities whether possible.
By: Eng Leaphea, MBA
28/03/2012 70
SW2
SW2 (TO ERASE GROUP CONTROL ADDRESS)
Outdoor air intake temperature sensor Outdoor heat exchanger temperature sensor Outdoor defrost temperature sensor
Indoor gas pipe sensor Oil separator Indoor intake air temperature sensor
Accumulator Outdoor expansion valve Receiver Strainer DC 2-piston rotary compressor Strainer Check valve Liquid bypass valve
3-Create Geometric Layout. Here, using simulations, computer-aided design, or computer aided other techniques, the product arranged in several configurations to determine the best solutions. For example, should the disk load in the front or the side of the CD player? 4-Check Interactions between Chunks Chunks. Understand what happens at the interfaces between chunks In the CD chunks. player, sound flows as a digital signal to the disk during recording and also as a 28/03/2012 73 digital signal from the disk during By: Eng Leaphea, MBA playback
ADDRESS
1 2 3
1 2
ADDRESS
Press and hold Auto Switch button at the indoor unit until 3 beeps sound is heard (~11secs).
ADDRESS
GROUP
Press any button of remote controller. Ensure the indoor is acknowledged by a beep sound sound.
Supportive Participants Design consultants Marketing Personnel Resellers Vendors/ Suppliers Governments Customers Company Attorneys Technical Service
76
28/03/2012
Several techniques are currently being used to make sure that design is integrated correctly with other functions during the development phase, and that the products being designed can be manufactured in a cost-efficient g g way. Important among these is collocation ( putting the various i di id l or f i individuals functional areas i ti l in close l proximity). When the different groups are not in regular contacts and cooperating there is a tendency for p g y information to be lost (or hidden). This causes wasted work and slows the whole operation down. Many firms have tried collocation to shorten communication lines and increase team cohesion. 28/03/2012 77
Colocation helps integrate departments and improve information flow and also allows the team members to identify and resolve product development problems more quickly. It must, be carefully planned and handled. y , In many firms, the effects of collocation are achieved without actual physical proximity of team members, using the resources of communications technology. This is sometimes known as digital colocation. As a final note, there is a recent increase in the use of global teams (that is, teams comprising individuals from at least two different countries).
By: Eng Leaphea, MBA
28/03/2012 78
Improved information technologies such as e-mail, and company h il d databases combine with phone calls and regular mail to make global teams an increasingly feasible option. gy p
In addition, partnering upstream with vendors is a possibility. Most companies possibility tell us they are doing it, by using reverse marketing, marketing technology searches demands searches, that suppliers value engineer their product, product and by putting supplier people on 28/03/2012 the new product teams. 79
Chapter 5
Special Issues in Development D l t
28/03/2012 81
Course Outline
Week 6 Description Hours 3 hours
Speed to Market 1- Techniques for Speeding Time to Market 2- Overall Principles and Guidelines The Role of Top Management during Development 7 Chapter05: Special Issues in Development Functional Interface Management 1- Managing the Interfaces g g 2- Overall Principles and Guidelines Strategies for Global Product Innovation 3 hours
28/03/2012
82
28/03/2012
Many different industry settings that cross functional cross-functional teams contribute greatly to increasing speed to market. Far better is to use such devices as benchmarking, where a firm studies other firms The way management measures speed to market (or, frequently, ti dt k t( f tl time to market), is often getting the idea to the h th shopping d k f t i dock faster..
Speed to Market p
83
Hearing about the value of being first to mindshare rather than being first to market market. The firm with mindshare in a given product category is the one that the target market associates with the product category, and that is seen as the standard for competitors h h d df to match. Firms that strive for mindshare think not about the speed of an individual p p products development and launch, but rather about creating a dominant position in the mind of the th customer. t
28/03/2012 84
85
86
28/03/2012
-Do the job right the firs time. - T i i of everyone involved. Training f i l d - Communication. Co u cat o . - Flexibility. - Fast decision.
87
It is too easy to say that marketings role is to gather information from the marketplace marketplace. Too often, that means that marketing plays a gatekeeper role, funneling information from the marketplace to the new products team Marketing eventually found out that there was a bigger market out there that was very interested in, but not for the attributes originally thought to be most important. Clearly, the original technology-push innovation h d d i i had done and market needs were d k d now driving further technical development.
28/03/2012 89
In new product development, we often hear of ft h f manufacturing rampf t i up- the stage at which manufacturing personnel plan the full-scale production of the p p product. Just like manufacturing ramps up from prototypes to full production production, marketing can be said to ramp up for product launch- and marketing rampd l h d k i up begins here.
28/03/2012 91
New product people claim that only top managements have the power to make decisions essential to their projects. But, in all fairness, top management support is needed for the overall new product program they don not have time to be champions for individual projects except rare, crucial ones rare ones.
28/03/2012
92
Specifically, how can top management help? They should be smart, experienced general managers, for starters. They should know how to make timely decisions, and realize the unique and extraordinary need of the new product staff f t di d f th d t t ff for strategy direction. The top manager should support (in fact fact, demand) a product innovation charter. Add, too, a longer-term financial view and a managerial style that supports risk-taking and good communication. Top management s interest and support should be managements clearly signaled by open statements of confidence, by appointments of p p who clearly are y pp people y comers in a firm.
28/03/2012 93
- Participants who continue to be a problem should be taken out of new products team p situations; they get some perverse satisfaction out of reactions to their behaviors.
28/03/2012 96
Structurally, g y global p product innovation can be handled in several ways: 1 Make 1-Make no special arrangements. Export what is developed for the home market. On the one hand this is called the export approach, yet when market conditions around the world are substantially the same, then this approach of one product for all countries is called global strategy.
28/03/2012 98
2- Keep structure the same, b 2 K h but develop versions of the new p item to meet the needs of viable foreign markets. This markets approach is usually thought of as a variation of the export i i f h approach or called pp international strategy.
28/03/2012 99
3 3- Use the facilities of the home firm, but have separate projects directed by managers in each viable foreign area area. These foreign managers learn of available technologies in the home firm, il bl t h l i i th h fi study their local markets to see how each might apply, and then set up h h l d h projects to develop what is needed there. This is often called a multinational strategy. gy
28/03/2012 100
4- Assign the basic responsibility for product innovation to each foreign d hf business larger enough to have the resources for it. This usually means , g, some local R&D, local manufacturing, and almost totally local marketing. Operational cultures and policies will vary greatly from country to country. This strategy ha no common name, but local drive would fit fit.
28/03/2012 101
5- The last alternative is a mix of the above, variously called matrix, b i l ll d ti country of excellence. Essentially, the firm wants to be a major player in all viable markets of the world, but wants to develop strategies appropriate to each of those markets. It is often done by world region, continent, or other larger geographical division.
28/03/2012 102
Chapter 6 p
28/03/2012
3- Can We Deliver A Total Quality Product? Recall the idea of the augmented productwhere there is a core benefit, then a formal product, and then the many augmentations of service, warranty, image, financing, and so on. The new product process tends to focus on the core b h benefit and the f fi d h formal product, l d and even that may have implementation problems. problems But firms often just assume they will be able to deliver outer ring of augmented product quality
28/03/2012 108
the sales force will be able to explain the new item well, early product breakdowns will not chase other potential buyers away, the finance division will approve generous financing arrangements, the advertising effectively answers competitors claims, competitors and warehouse personnel wont make a simple mistake and destroy half the p y product.
28/03/2012 109
Diagnostic information
Diagnostic information
28/03/2012
110
Beta tests
The ultimate use test of the protocol is to try it out at customers sites, to evaluate whether the product solves whatever problems led to development of the product p p p in the first place. These are short-term use tests at selected customers sites (external customers or, sometimes, employees serving as internal customers). In fact, some have their people competing to see who can find the most bugs in a new item-better now than later. The tests are not designed to tell them about meeting customer needs and solving problems-such testing takes longer than the few weeks usually allowed on 28/03/2012 112 computer products.
Gamma Testing
Beta testing may not meet all of the developers developer s needs. In a beta test, users may not have had time to judge whether the new product met their needs or was cost effective for them cost-effective them. As a result, a third is becoming popular, gamma testing (gamma being the third Greek letter after alpha and bets). It designates the ideal product use test, where the item is put through its paces and g thoroughly evaluated by the end-user. To pass this test the new item must solve whatever test, problem the customer had, no matter how long it takes. Gamma testing is so critical on new medicines and medical equipment that the United States demands it; such testing can take up to 10 years. 28/03/2012 113
Diagnostic Information
New products managers are looking for how items are used, what mistakes are made. Use tests often suggest ways to improve performance or to reduce cost. New product developers also seek specific pieces if information needed to back up their claims. Marketers want confirmation of target markets and product positioning. positioning g y g Product integrity is also on trial during a use test, since only the users perceptions tell us whether the parts tie together into a meaningful whole, and whether product pp p g y fist application. Last, developers are watching for many other red flag, a signal that users had some problems understanding the new item or where show to accept yg the results they got, and so on.
28/03/2012 114
Th third t t group option, employees, i widely The thi d test ti l is id l utilized thought often criticized. Company loyalties and pressures and employees lifestyles and customer may distort opinions and attitudes. Obvious problems of possible bias can be overcome to some extent by concealing product identities and by carefully training and motivating the employee panel. Stakeholder are the next choice, and the set includes customers and non-customers, users and nonusers, d d resellers. End-user advisers (such as architects), users p p , p g , of competitive products, repair organization, and technical support specialists whose reactions to new products have been sought.
28/03/2012 116
Second, there is a choice between individual contact and group contact. Most firms prefer individual contact, especially at this critical point in the development cycle, but it may be cheaper to deal with groups. (traditional focus group is not a g p ( g p place for use testing.) Third the individual mode of contact brings up Third, the question of location. Should the test be conducted at the point of use (home, office, or factory), factory) or should it be conducted at a central location (test kitchen, shopping center, theater, or van)? The point-of use location is more realistic and permits more variables to operate But it operate. offers poor experimental control and permits easy misuse.
28/03/2012 118
Some people conduct use tests with virtually no comment other than the obvious Try this. But such tests run the risk of missing some of the specific testing needs. A second degree of explanation, called commercial, dd f l ll d i l includes just the information the customer will get when actually buying the product later later. The third level is full explanation It may be necessary explanation. to include a great deal of information just to ensure the product g used p p y p gets properly
28/03/2012 120
Some use tests require a single product experience; some require use over short periods of up to a week; and some require use over extended periods of up to six months. The initial, quick test predicts the early reactions of those people we call innovators Failure here even if innovators. here, perceptions are unjustified, will often doom a good product. Tests over a month long are rare on consumer product and difficult to defend to management. But if a new piece of business equipment will be positioned on its cost-cutting advantage, the use test had better run long enough for the user to see a significant cost reduction.
28/03/2012 122
Rejections?
Essentially, three options are available. First, a five-or seven-point verbal rating scale is generally used to record basic like/dislike data.
Second, the respondent is usually asked to compare the new product with an other product, say, th l d or d t ith th d t the leader the one currently being used, or both; this is a preference score; which can be obtained several ways. Third, for diagnostic reasons, testers usually want d di i ll descriptive i ti information about the product that covers any and all important attributes.
124
28/03/2012
A research firm was involved in studying h fi i l di t d i opportunities for a new sausage and had previously asked consumers t rate th i l k d to t the sausage products then available on a variety of attributes, i l di greasiness. i t f tt ib t including i The results showed strong aversions to both of those attributes, which were associated with low overall scores for p product q quality. y
28/03/2012 125
28/03/2012
Special Problem p
Dont Change the Data Just Because They Came Out Wrong
One firm discovered a user in a use, but the president said Theyre just going to have to have said, They re to live with it. Unfortunately, the use test did not ask whether users were willing to live with it. g They werent, and the product failed. g In some tests technical and marketing people warn of user problems only to be told that they are being negative-a real-life case of kill the messenger.
28/03/2012 127
Chapter 7
Strategic Launch St t i L h Planning g
28/03/2012 130
I. Setting
At this point in the new products process, the t th team is ready to build the actual i d t b ild th t l marketing plan. The task should be easy if the th new it item i an i is improvement t it t to items already in the line. Weak strategic planning then shows up when the product reaches the market and market, tactical error (such as insufficient resource allocation) can compound the problem problem.
28/03/2012 131
Strategic launch decision include both strategic platform decisions that set , g overall tones and directions, and strategic action decisions that define to whom we are going to sell and how. Tactical launch decisions are marketing mix decisions such as communication and promotion, distribution, and pricing that are typically made after the strategic launch decisions, and define how the g p strategic decisions will be implemented.
28/03/2012 132
The point is, they need to be identified and studied. If the launch team wants to d d d f h l h challenge such restrictions, fine, but it should d so early and should be h uld do arl h uld b prepared to lose. Ultimately, as company organizations are g g now changing, most of these restrictions will yield. They are silo or chimney holdings, and the horizontal management philosophy of today is designed to bypass hil h f d i d i d b just such restrictions.
28/03/2012 134
Customer Acceptance Measures C t Customer acceptance ( r t n (use) ) Customer satisfaction Revenue (dollar sales) Market share Unit volume Financial Performance Margins Profitability
28/03/2012 136
Product Level Performance Product cost Time to launch Product performance Q lit guidelines Quality id li Other Nonfinancial measures peculiar to the p g new product being launched Example: competitive effect, image change, and morale change.
28/03/2012 137
28/03/2012
2. Permanence 3. Aggressiveness 4. C 4 Competitive Ad titi Advantage t p 5. Product Line Replacement 6. Competitive Relationship 7. S 7 Scope of Market Entry fM k E 8. Image g
28/03/2012
139
A current twist in target market selection is the trend toward smallness. These clusters have been labeled micro-markets micro-markets. Direct marketers have always used tiger segments than have mass media marketers, stemming from their databases.
28/03/2012 141
The ultimate smallness and the smallness, ultimate in building in customer value, is mass customization Great advances in information technology and changes in i work processes make mass k k customization feasible for many products; the challenge is for managers p to decide how best to proceed.
28/03/2012
142
New products are innovations, and we call the spreading of their usage the diffusion of innovation. Lets look closer now at the factors that affect this speed of the product adoption p process: the characteristic of the innovation product, and the extent to y g which early users encourage other to follow
28/03/2012 143
Product characteristic
There are at least five factors that measure how soon a new product will receive trial. 1. The relative advantage of the new product. 2. Compatibility. 2 C ibili 3. Complexity. 4. Divisibility (also called trial ability). 5.Communicability (also called observability).
28/03/2012 144
Positioning alternatives fall into two broad categories The first is to position to an attribute ( feature, a f tt ib t (a f t function, or ti a benefit). Attributes are the traditional positioning devices and are most popular. d t l
28/03/2012 146
The second alternative in positioning is p g to use surrogates (or metaphors). This says the product is better are not given; the listener or viewer has to provide those. those If the surrogate is good the good, listener will bring favorable attributes to the product product.
The market research techniques we encountered early on can be profitably put d l b f bl to use in developing a positioning strategy.
28/03/2012 147
VII. Creating Unique Value for the Chosen Target Once a market segment has been targeted and a positioning statement created for it we have it, a chance to cycle back to the product itself and see if we can enhance its value to the chosen market.
28/03/2012 148
As the first product is coming down the pike, the first couple of line extensions should be in development. Then, after launch, when competitors are casting y around for ways to come out with catchup versions, we market them first. In the remainder of this section, we will focus our attention on two of the ways in which we can increase unique value to the targeted t t d customerbranding t b di and d packaging.
28/03/2012 149
IX. Packaging g g
1. What Is Packaging? g g
28/03/2012
28/03/2012
153
28/03/2012
154