3. Five different categories of new products.
1. New to the world Products
2. New Category entries
3. Addition to products lines
4. Product improvements
5. Repositioning

4. 1. Product superiority/quality
2. Economic advantage to user
3. Overall company/project fit
4. Technological compatibility
5. Familiarity to the company
6. Market need, growth and size
7. Competitive situation
8. Define opportunity
9. Market-driven process
10. Customer service

5.  As emphasized by a top executives at
Pillsbury, “In the end, the company with
the most new products wins”
 The head of P&G stated “The core
business is innovation. If we innovate
well, we will ultimately win”

6. The largest manufacturer in Minnesota, the 110th largest U.S.
company overall, and a member of the Dow Jones "30," 3M
Company (known officially as Minnesota Mining and
Manufacturing Company from its founding in 1902 until 2002)
is Wall Street's epitome of high-tech/low-tech business and
solid blue-chip performance. In the years since their
successful introduction of the world's first waterproof
sandpaper, they evolved into a diversified technology
company with leading positions in a broad range of
important markets. Today, they produce thousands of
innovative products and have companies in more than 60
countries. In extending their market reach, 3M's formula for
success has remained the same: first, identify customer
needs, and second, use 3M technology to pioneer innovative
solutions to meet these needs. The company also practices
social responsibility by supporting community efforts to
improve education as well as to further economic and social
development.

7.  Is a statement identifying the role a new
product is expected to play in achieving
corporate and marketing goals. This
strategy can be used to determine
which prospective products should
receive special attention, which should
go on the “back burner,” and which
should be scrapped.

8.  A new product is best developed
through a series of seven stages that
provides benefits such as improved
teamwork, less rework, earlier failure
detection, shorter development times,
and – most important – higher success
rates.

9. First
“KNOW THY CUSTOMER,”
and the Second is
“KNOW THY PRODUCT”

10. Idea screening
Idea Concept
generation development
& testing
Prototype
Test marketing development
Business
analysis
Commercialization

11.  Is the initial stage of the new-product-
development. In one study, 80% of
companies pointed to customers as their
best source for new-product ideas.

12. 1. CUSTOMERS
a. Customers requests
b. Customer complaints/compliments
c. Market surveys
d. Focus groups
2. COMPETITORS
a. Monitoring competitor’s developments
b. Monitoring testing of competitors’ products
c. Monitoring of industry movements

13. 3. DISTRIBUTION CHANNELS
a. Suppliers
b. Distributors
c. Retailers
d. Trade shows
4. RESEARCH AND ENGINEERING
a. Product testing
b. Product endorsement
c. Brainstorming meetings
d. Accidental discovery

14. 5. OTHER INTERNAL SOURCES
a. Management
b. Sales force
c. Employee suggestions
d. Innovation group meeting
e. Stockholders
6. OTHER EXTERNAL SOURCES
a. Consultants
b. Academic journals
c. Periodicals and other press

15. L.A. Mitchell, Account Executive for large Business
Accounts, Lucent Technologies, discusses sources
for new product ideas: “New-product ideas come
from just about anywhere. Lucent has entire
organizations whose sole functions is to continually
explore and develop new-products ideas. Some of
the best ideas come from needing to solve a
significant customer problem. For example, the
increase in automobile accidents due to people
talking on cell phones while driving has generated
many ideas for new products and features. Some
of these include products that allow cell phones to
be used “hands free” and new features that make
it possible to dial number by simply speaking the
name of the person or business you wish to call.”

16. At this stage, new product ideas are
evaluated to determine which ones
warrant further study. Typically, a
management team relies on experience
and judgment, rather than on market or
competitive data, to screen the pool of
ideas.

17. 1. Develop Product Ideas into
Is the process of Alternative
shaping and refining Product Concepts
the idea into a more
complete product
concept. 2. Concept Testing - Test the
Product Concepts with Groups
of Target Customers
3. Choose the Best One

18. Business Analysis
Review of Product Sales, Costs,
and Profits Projections to See if
They Meet Company Objectives
If No, Eliminate
Product Concept
If Yes, Move to
Product Development

19. Means converting the concept into an
actual product. The objective is to use
the information obtained from the
concepts tests to design an actual
product that can be further tested.

20.  Involves testing the
product prototype Standard
and marketing Test Market
strategy in Full marketing campaign
in a small number of
simulated or actual representative cities. Controlled
market situations. Test Market
Test and marketing A few stores that have
can be both Simulated agreed to carry new
products for a fee.
expensive and Test Market
risky. Test in a simulated
shopping environment
to a sample of
consumers.

21. 1. PSEUDO SALES potential buyers are asked
to answer survey questions or pick items off
a shelf in a make believe store.
2. CONTROLLED SALES here the buyer must
make a purchase
3. FULL SALE the firm has decided to fully
market the product, but on a limited basis
first, to see if everything is working right
4. NATIONAL LAUNCH the firm launches the
product on a national scale and make
adjustments as needed.

22. This is the launching step. During this stage,
heavy emphasis is place on the
organization structure and management
talent needed to implement the
marketing strategy.

23. 1. No competitive point of difference, unexpected
reactions from the competitors or both.
2. Poor positioning
3. Poor quality of the product
4. Non delivery of promised benefits of product
5. Too little marketing support
6. Poor perceived price/ quality relationship
7. Faulty estimates of market potential and other
marketing research mistakes
8. Faulty estimates of production and marketing costs
9. Improper channels of distribution selected
10. Rapid change in the market(economy) after the
product was introduced

24. THANK YOU