Lectures Marketing management: Chapter 20 - ThS. Nguyễn Tiến Dũng

Lectures Marketing management - Chapter 20: Introducing new market offerings provides students with the knowledge: New product options, challenges in new product development, organisational arrangements, the consumer-Adoption process. Invite you to refer to the disclosures.

CHAPTER 20

INTRODUCING NEW MARKET OFFERINGS

Nguyen Tien Dung, MBA Email: dung.nguyentien3@hust.edu.vn

Chapter Questions

● What challenges does a company face in developing new products and services?

● What organizational structures and processes do

managers use to manage new-product development?

● What are the main stages in developing new products

and services?

● What is the best way to manage the new-product

development process?

● What factors affect the rate of diffusion and consumer

adoption of newly launched products and services?

Main Contents

1. New Product Options

2. Challenges in New-Product Development

3. Organisational Arrangements

4. The Consumer-Adoption Process

1 New Product Options

● Make or Buy

● Types of New Products

● New to the world

● New to the company

● Improvements of existing products

2 Challenges in New-Product Development

● The Innovation Imperative

New Product Failure

● Shortage of important ideas in certain areas

● Fragmented markets

● Social, economic, and governmental constraints

● Cost of development

● Capital shortages

● Shorter required development time

● Poor launch timing

● Shorter product life cycles

3 Organisational Arrangements

● Budgeting for New-Product Development

● Organising New-Product Development

● Product managers

● New-product managers who report to category

managers

● Growth leaders—a full-time job for its most

creative and successful managers

● A high-level management committee

● A new-product department

Budgeting for New Product Development

4 Managing the New Product Development Process

Generating New Ideas: 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

Seven Notions of Innovation

● See the future through the eyes of your customer

● Intellectual property and brand power are key

assets

● Use digital technology to create tools for

customers

● Build a championship team

● Innovation is a state of mind

● Speed is critical, so push your organization

● Partner up if you’re not the best

More Ways to Find Great Ideas

● Use iterative rounds with customers

● Set up a keyword search to scan trade

publications

● Treat trade shows as intelligence missions

● Have employees visit supplier labs

● Set up an idea vault

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

Idea Generation: Creativity Techniques

Variations on Failure

● Absolute product failure

● Partial product failure

● Relative product failure

Marketing Strategy

● Target market’s size, structure, and behavior

● Planned price, distribution, and promotion for

Year One

● 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?

● Which cities?

● Length of test?

● What information to collect?

● What action to take?

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

4 The Consumer-Adoption Process

● The stages in the adoption process

● Factors influencing the adoption process

Stages in the Adoption Process

Awareness Interest Evaluation

Trial

Factors Influencing the Success of an Innovation

● Readiness to try new products and personal

influence

● Characteristics of the Innovation

● Organizations’ readiness to adopt

innovations

Innovation Diffusion Process

Characteristics of the Innovation