MRKTNG 3000 1nd Edition Lecture 10 Outline of Last Lecture I Happiness advantage a Path to happiness Outline of Current Lecture II New product development III New product strategy a Technology drivers b Market drivers IV Idea generation V Brainstorming VI Concept testing VII Product development VIII Market testing Current Lecture Importance of new product development Key to profitability Survivability Capacity to change lives What is a new product New to the world products These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute New category entries Additions to product lines Product improvements Repositionings Breakthrough innovations that changed our lives Internet Refrigeration MRI machine GPS Birth control pill Broadband fiber optics Electricity TV etc Why does a firm need a new product strategy To chart the group s team s direction What tech What markets To set the group s goals and objectives Why does it exist To tell the group how it will play the game Rules and constraints Other key info Contents of new product strategy Focus A clear technology dimension and a clear market dimension that match and have good potential Goals objectives What the project s will accomplish Guidelines Technology drivers Materials Corning s glass Processes Deloitte and Touche s financial information analytical capabilities People A scientist an engineering group even a product management group Facilities Kimberly Clarke s paper making lines Other Any strong competency Market drivers Customer groups or resellers ski shops European importers Ford Motor Co etc End users All skiers beginning skiers professional skiers End use activity skiing food manufacturing etc Others Mass customizing focusing on everyone individually a competitor s customers etc How firms develop new products Idea generation concept testing product development market testing product launch evaluation of results Idea generation Internal R D R D consortia licensing brainstorming competitors products customer input Brainstorming Groups work together to generate ideas No idea can be immediately accepted or rejected As much as 85 of new business to business product ideas come from customers Lead users modify existing products according to their own specific needs Concept testing Concept is a brief written description of the product Customer reactions determine whether or not it goes forward Triggers the marketing research process Product development 1 Prototype 2 Alpha testing 3 Beta testing Market Testing Premarket tests Customers exposed Customers surveyed Firm makes decision Test marketing Mini product launch More expensive than premarket tests Market demand is estimated New product development at Apple 1 Level of importance Extremely important 2 What are characteristics that make it successful