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MARKETING MANAGEMENT 12th edition KotlerKeller 20 Introducing New Market Offerings 1 Chapter Questions nWhat challenges does a company face in developing new products? nWhat organizational structures are used to manage new-product development? nWhat are the main stages in developing new products? nWhat is the best way to set up the new-product development process? nWhat factors affect the rate of diffusion and consumer adoption of newly launched products? 2 Categories of New Products nNew-to-the-world nNew product lines nAdditions to product lines nImprovements to products nRepositionings nCost reductions 3 Factors That Limit New Product Development nShortage of ideas nFragmented markets nSocial and governmental constraints nCost of development nCapital shortages nFaster required development time nShorter product life cycles 4 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. 5 Criteria for Staffing Venture Teams nDesired team leadership style nDesired level of leader expertise nTeam member skills and expertise nLevel of interest in concept nPotential for personal reward nDiversity of team members 6 Idea Generation: Creativity Techniques nAttribute listing nForced relationships nMorphological analysis nReverse assumption analysis nNew contexts nMind mapping 7 Variations on Failure nAbsolute product failure nPartial product failure nRelative product failure 8 Concepts in Concept Development nProduct idea nProduct concept nCategory concept nBrand concept nConcept testing 9 Concept Testing nCommunicability and believability nNeed level nGap level nPerceived value nPurchase intention nUser targets, purchase occasions, purchasing frequency 10 Marketing Strategy nTarget markets size, structure, and behavior nPlanned price, distribution, and promotion for Year 1 nLong-run sales and profit goals and marketing-mix strategy over time 11 Product Development nQuality function deployment (QFD) Customer attributes Engineering attributes 12 Prototype Testing nAlpha testing nBest testing Rank-order method Paired-comparison method Monadic-rating method nMarket testing 13 Consumer Goods Market Testing nSales-Wave Research nSimulated Test Marketing nControlled Test Marketing nTest Markets 14 Test Market Decisions nHow many test cities? nWhich cities? nLength of test? nWhat information? nWhat action to take? 15 Timing of Market Entry nFirst entry nParallel entry nLate entry 16 Criteria for Choosing Rollout Markets nMarket potential nCompanys local reputation nCost of filling pipeline nCost of communication media 17 Consumer-Adoption Process Adoption is an individuals decision to become a regular user of a product. 18 Stages in the Adoption Process Awareness Interest Evaluation Trial Adoption 19 Adopter Categorization nInnovators nEarly adopters nEarl
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