Marketing management topic 8 introducing new market offering

MARKETING MANAGEMENTTopic 8 Introducing New Market Offerings... Factors That Limit New Product... Venture TeamCross-functional group charged with developing a specific product or busines

MARKETING MANAGEMENT

Topic 8 Introducing New Market Offerings

Chapter Questions

 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

Categories of New Products

 New-to-the-world

 New product lines

 Additions to product lines

 Improvements to products

 Repositionings

 Cost reductions

Factors That Limit New Product

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.

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

Idea Generation: Creativity Techniques

Variations on Failure

 Absolute product failure

 Partial product failure

 Relative product failure

Concepts in Concept Development

 Long-run sales and profit goals and

marketing-mix strategy over time

Consumer Goods Market Testing

 Sales-Wave Research

 Simulated Test Marketing

 Controlled Test Marketing

 Test Markets

Test Market Decisions

 How many test cities?

Timing of Market Entry

 First entry

 Parallel entry

 Late entry

Criteria for Choosing Rollout Markets

 Market potential

 Company’s local reputation

 Cost of filling pipeline

 Cost of communication media

Consumer-Adoption Process

Adoption is an individual’s decision

to become a regular user

of a product

Stages in the Adoption Process

AwarenessInterestEvaluation

Trial