Developing New

1
Chapter 11
Developing New Market Offerings
Marketing Management Tenth Edition Philip Kotler
2
Objectives

• Challenges in New Product Development (NPD)
• Organizational Structure NPD
• Stages Management of NPD
• Diffusion Adaption of New Products

3
Why New Products Fail

• Over Championing
• Overestimated Demand
• Poor Design
• Poor Marketing Execution
• High Development Costs
• Strong Competitive Reaction

4
Challenges in NPD

• Idea Shortage
• Fragmented Markets
• Social Governmental Constraints
• Cost
• Capital Shortage
• Need for Speed
• Shorter Product Life Cycles

5
New Product Development Process
Idea Generation
6
Probability of Success
Probability of technical completion
7
Concept Development Testing
1. Develop Product Ideas into Alternative
Product Concepts
8
Product Brand Positioning
(a) Product-positioning map (breakfast market)
b) Brand-positioning map (instant breakfast
market)
9
Conjoint Analysis
10
Consumer-Goods Market Testing
Controlled Test Market A few stores that have
agreed to carry new products for a fee.
Simulated Test Market Test in a simulated
shopping environment to a sample of consumers.
Sales- Wave Research Test offering trail to a
sample of consumers in successive periods.
Standard Test Market Full marketing
campaign in a small number of representative
cities.
11
Commercialization
12
Adopter Categorization of the Basis of Relative
Time of Adoption of Innovations
Time of adoption innovations
13
Characteristics of the Innovation Rate of Adoption

• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability

14
Review

• Challenges in New Product Development (NPD)
• Organizational Structure NPD
• Stages Management of NPD
• Diffusion Adaption of New Products