Developing New Market Offerings

1
Developing New Market Offerings
705721 Marketing Management
EK BUNCHUA ek_at_ba.cmu.ac.th Department of
Marketing Faculty of Business Administration Chian
g Mai University
2
Types of New Product

• New-to-the-world products
• New product lines
• Additions to existing product lines
• Improvements and revisions of existing products
• Repositionings
• Cost reductions

3
Why Do New Products Fail?

• A high-level executive pushes a favorite idea
  through in spite of negative market research
  findings
• The idea is good, but the market size is
  overestimated
• The product is not well designed
• The product is incorrectly positioned in the
  market, not advertised effectively, or overpriced
• Development costs are higher than expected
• Competitors fight back harder than expected

4
Factors Hinder New Product Development

• Shortage of important ideas in certain areas
• Fragmented markets
• Social and governmental constraints
• Cost of development
• Capital shortages
• Faster required development time
• Shorter product life cycles

5
New Product Development Process

• Idea generation
• Idea screening
• Concept development and testing
• Marketing strategy development
• Business analysis
• Product development
• Market testing
• Commercialization

6
1. Idea Generation

• ???????????????? ? ????????????
  ???????????????????????????????
• ???????????????????????
• ?????? (??????????????? ???? ?????????????????????
  ?????)
• ??????????
• ?????? (?????????? ?????????)
• ??????????????
• ????????? ?????????? ???????????????
• ?????????? ??????????? ?????????????? ???

7
2. Idea Screening

• ???????????????????????????????????
• ????????????????????????? (Evaluating
  Opportunities)
• ????????????????????????????????? ???????????
  ?????????????? ?????? ?????? ????
• ??????????????????????? (Idea Rating)
• ????????????????? ? ???? ??????????????????
  ?????????????? ????????????? ????????????? ??????
  ??? ???????????????????????????? ??????????
  ????????????????

8
3. Concept Development and Testing

• ?????????????????? (Concept Development)
• ??????????????????????????????????????????????????
  ???
• ?????????????? ??????????????????????
  ?????????????
• ?????????????????????? ???????? Positioning Map
• ?????????????????? (Concept Testing)
• ??????????????????????? ???????????????????
• ??????????????? ????????????? ?????????

9
(No Transcript)
10
(No Transcript)
11
4. Marketing Strategy Development

• ?????????????????
• ??????????? (Market Size)
• ??????????????????????????
• ??????????????????????? (Positioning)
• ???????????????????????? (4 Ps)
• ????????????? ?????????????????
  ??????????????????????????????????????
• ???????? (???????????????????????????)
• ???????

12
5. Business Analysis

• ??????????????? ?????? ????
• ????????????????? ??????? ??????
  ?????????????????????
• BCG Growth-share Matrix
• Product-Market Expansion Grid
• ??????????????????????????????????????????????????
  ?????????????????? ???????
• Financial Analyses (Break-even Analysis, Net
  Present Value, Return on Investment, Payback
  Period, Risk Analysis, etc.)

13
6. Product Development

• ????????????????? (Concept) ???????????????
  ?????? ???????? ??????????????????????????????????
  ????????? (Prototype)
• ?????????????????????????????????????????????
• ?????????????????????????? (Product Attributes)
  ?????? ?? ???? ??????? ???????
  ????????????????????? ??????????????????????
  ???????????????????????????????????????????????
  ??????????????????????????

14
7. Market Testing

• How many test cities?
• Which cities?
• Length of test?
• What information?
• Store audits -- market shares
• Consumer panels -- buyer characteristics, brand
  choices, loyalty and switching rates
• Buyer surveys -- attitudes, usage, satisfaction

15
7. Market Testing

• What action to take?
• High trial and repurchase rates -- launch
  nationally
• High trial rate, low repurchase rate -- redesign
  the product
• Low trial rate, high repurchase rate -- increase
  advertising and sales promotion
• Low trial and repurchase rates -- abandon the
  product

16
8. Commercialization

• ???????? 4 ???????
• ???????? (????????????????????????????????????????
  ??? ??????????? ???????????? ???????????)
• ??????? (???????????????????? ?????????????????
  ??????????????? ?????????????????????
  ?????????????????????)
• ??????? (?????????????????????????????????????????
  ?????? ??????? ?????????????????????
  ?????????????????? ?????????????
  ??????????????????)
• ???????? (????????????????????????????)

17
Consumer Adoption Process
?????????????????????? ???????????????
18
Adopter Categorization Diffusion of Innovations
???????????????? ???????????????????????????????
Time of adoption of innovations
19
Innovation Affect Rate of Adoption
20
705721MarketingManagement