This document discusses developing new market offerings and the new product development (NPD) process. It covers challenges in NPD like idea shortages and costs. The NPD process involves idea generation, concept development and testing, marketing strategy development, and commercialization. Concept testing involves developing product concepts and testing them with target customers. Perceptual mapping and conjoint analysis are techniques used to understand customer perceptions and identify new product ideas. The document also discusses factors that influence the adoption of innovations like relative advantage, compatibility and affordability.

1. Developing New Market Offerings

5. New Product Development Process Idea Generation Concept Development and Testing Marketing Strategy Development Idea Screening Business Analysis Product Development Market Testing Commercialization

6. Probability of Success Probability of technical completion Overall probability of success = Probability of commercialization given technical completion X Probability of economic success given commercialization X

7. Concept Development & Testing 1. Develop Product Ideas into Alternative Product Concepts 2. Concept Testing - Test the Product Concepts with Groups of Target Customers 3. Choose the Best One

8. A research technique that enables marketers to plot graphically consumers’ perceptions concerning product attributes of specific brands. Perceptual Mapping

9. Product & Brand Positioning (a) Product-positioning map (breakfast market) b) Brand-positioning map (instant breakfast market) High price/oz. Low in calories Low price/oz. High in calories Expensive Slow Inexpensive Quick Bacon and eggs Pancakes Instant breakfast Cold cereal Hot cereal Brand C Brand B Brand A

11. Perceptual Map 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 1.0 0.8 0.6 0.4 0.2 -0.2 -0.4 -0.6 -0.8 Magic Mountain Japanese Deer Park Busch Gardens Knott’s Berry Farm Lion Country Safari Marineland of the Pacific Disneyland Economical Fun rides Exercise Fantasy Good food Easy to reach Educational, animals Little waiting Live shows

12. A research technique that enables marketers identify idea products by attribute and attribute level. Conjoint Analysis

13. Conjoint Analysis Brand name -- -- -- -- -- Utility 1.0 0 | | | K2R Glory Bissell Retail Price Utility -- -- -- -- -- 1.0 0 | | | $1.19 $1.39 $1.59 Good Housekeeping Seal? Utility 1.0 -- -- -- -- -- 0 | | No Yes Utility Money-Back Guarantee? 1.0 -- -- -- -- -- 0 | | No Yes

14. Consumer-Goods Market Testing Sales- Wave Research Test offering trail to a sample of consumers in successive periods. Simulated Test Market Test in a simulated shopping environment to a sample of consumers. Standard Test Market Full marketing campaign in a small number of representative cities. Controlled Test Market A few stores that have agreed to carry new products for a fee.

15. Commercialization When Where Whom Product Price Place Promotion

16. Adopter Categorization of the Basis of Relative Time of Adoption of Innovations Time of adoption innovations 2 1 /2% Innovators 13 1 /2% Early adopters 34% Early majority 34% Late majority 16% Laggards

17. Sales & Profit Life Cycles Introduction Growth Maturity Decline Time Sales & profits ($)