Marketing management topic 8 introducing new market offering

MARKETING MANAGEMENT

Topic 8
Introducing New
Market Offerings

Kotler

Keller


Chapter Questions
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What challenges does a company face in
developing new products?
What organizational structures are used to
manage new-product development?
What are the main stages in developing new
products?
What is the best way to set up the new-product
development process?
What factors affect the rate of diffusion and
consumer adoption of newly launched products?
20-2

Categories of New Products
New-to-the-world
 New product lines
 Additions to product lines
 Improvements to products
 Repositionings
 Cost reductions
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20-3


Factors That Limit New Product
Development
Shortage of ideas
 Fragmented markets
 Social and governmental constraints
 Cost of development
 Capital shortages
 Faster required development time
 Shorter product life cycles
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20-4


Venture Team
Cross-functional group charged with
developing a specific product or business;
Intrapreneurs are relieved of other duties

and provided a budget and time frame.

20-5


Criteria for Staffing Venture Teams
Desired team leadership style
 Desired level of leader expertise
 Team member skills and expertise
 Level of interest in concept
 Potential for personal reward
 Diversity of team members
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20-6


Idea Generation: Creativity Techniques
Attribute listing
 Forced relationships
 Morphological analysis
 Reverse assumption analysis
 New contexts
 Mind mapping
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20-7


Variations on Failure

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Absolute product failure
Partial product failure
Relative product failure

20-8


Concepts in Concept Development
Product idea
 Product concept
 Category concept
 Brand concept
 Concept testing
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20-9


Concept Testing
Communicability and believability
 Need level
 Gap level
 Perceived value
 Purchase intention
 User targets, purchase occasions,
purchasing frequency

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20-10


Marketing Strategy
Target market’s size, structure, and
behavior
 Planned price, distribution, and promotion
for Year 1
 Long-run sales and profit goals and
marketing-mix strategy over time
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20-11


Product Development
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Quality function deployment
(QFD)
Customer attributes
Engineering attributes

20-12


Prototype Testing
Alpha testing

 Best testing
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 Rank-order

method
 Paired-comparison method
 Monadic-rating method
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Market testing

20-13


Consumer Goods Market Testing
Sales-Wave Research
 Simulated Test Marketing
 Controlled Test Marketing
 Test Markets
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20-14


Test Market Decisions
How many test cities?
 Which cities?
 Length of test?
 What information?

 What action to take?
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20-15


Timing of Market Entry
First entry
 Parallel entry
 Late entry
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20-16


Criteria for Choosing Rollout Markets
Market potential
 Company’s local reputation
 Cost of filling pipeline
 Cost of communication media
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20-17


Consumer-Adoption Process

Adoption is an individual’s decision
to become a regular user
of a product.

20-18


Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption
20-19


Adopter Categorization
Innovators
 Early adopters
 Early majority
 Late majority
 Laggards
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20-20


Characteristics of an Innovation
 Relative

advantage
 Compatibility
 Complexity

 Divisibility
 Communicability

20-21