The document discusses factors that limit new product development, including shortage of ideas, fragmented markets, and higher costs and shorter timelines. It also discusses ways to find new product ideas, such as customer surveys and brainstorming sessions. Finally, it discusses testing new products in test markets before full adoption, and categorizing customers based on when they adopt new products.

1. 20
Introducing New
Market Offerings
1

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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

3. What is a Venture Team?
 A venture team is a cross-functional group
charged with developing a specific product or
business.
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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

5. Figure 20.1 New-Product
Development Decision Process
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Ways to Find Great New Ideas
 Run informal sessions with customers
 Allow time off for technical people to putter on
pet projects
 Make customer brainstorming a part of plant
tours
 Survey your customers
 Undertake “fly on the wall” research to
customers

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Drawing Ideas from Customers
 Observe customers using product
 Ask customers about problems with products
 Ask customers about their dream products
 Use a customer advisory board or a brand
community of enthusiasts to discuss product

8. Consumer Goods Market Testing
 Sales-Wave Research
 Simulated Test Marketing
 Controlled Test Marketing
 Test Markets
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Test Market Decisions
 How many test cities?
 Which cities?
 Length of test?
 What information to collect?
 What action to take?

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

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Stages in the Adoption Process
Awareness
Interest
Evaluation
Trial
Adoption

12. Figure 20.7 Adopter
Categorization on the Basis of
Relative time of Adoption
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