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此文档收集于网络,如有侵权,请联系网站删除INTRODUCING NEW MARKET OFFERINGS20C H A P T E R LEARNING OBJECTIVESAfter reading this chapter, students should:q Know what challenges a company faces in developing new productsq Know what organizational structures are used to manage new-product developmentq Know what are the main stages in developing new productsq Know what is the best way to set up the new product development processq Know what factors affect the rate of diffusion and consumer adoption of newly launched productsCHAPTER SUMMARY Once a company has segmented the market, chosen its target customer groups, identified their needs, and determined its desired market positioning, it is ready to develop and launch appropriate new products. Marketing should participate with other departments in every stage of new-product development. Successful new-product development requires the company to establish an effective organization for managing the development process. Companies can choose to use a product manager, new-product managers, new-product committees, new-product departments, or new-product venture teams. Increasingly, companies are adopting cross-functional teams and developing multiple product concepts. Eight stages are involved in the new-product development process: idea generation, screening, concept development and testing, marketing-strategy development, business analysis, product development, market testing, and commercialization. At each stage, the company must determine whether the ideas should be dropped or moved to the next stage. The consumer-adoption process is the process by which customers learn about new products, try them, and adopt or reject them. Today many marketers are targeting heavy users and early adopters of new products, because both groups can be reached by specific media and tend to be opinion leaders. The consumer-adoption process is influenced by many factors beyond the marketers control, including consumers and organizations willingness to try new products, personal influences, and the characteristics of the new product or innovation. OPENING THOUGHT Students will be challenged in understanding the new-product process if they are new to the science of marketing. Students, like the general population believe that new products are just “thought-up” and created! Therefore, the first barrier to effective learning in this chapter is to outline and detail the new-product process. An instructor can use examples from his/her experience in the creation of new products or he/she can set up as an in-class or outside class experiment, the “creation” of a new product by the class or in groups. Second, the consumer-adoption process may be new to some of the students who have not had any consumer buying behavior classes. This section of the chapter allows for the most discussion: Are you a heavy user? Or do you know someone who is an “early adopter”he/she who must have the latest gimmick? When involving the students in the examination(s) of their own lives or the lives of family/friends, the stages of the adoption process can begin to play a more meaningful role. Finally, personal influencethe effect that another person has on our willingness to try products should be a concept familiar to the students. The instructors challenge here is to show the students (or make them aware if they have not been aware) that personal influence is a powerful determinant of behavior. The marketer must be cognizant of personal influence in designing a marketing campaign. At this point, class discussion can focus on the ethics of designing marketing campaigns to reach influential opinion-makers to promote products and/or services. TEACHING STRATEGY AND CLASS ORGANIZATIONPROJECTS1. At this point in the semester-long Marketing Plan project, in this section should be a brief write up by the students as to the consumer-adoption process for their new product. How will the consumer learn about their new product and how quickly will they adopt it? Will the product be targeted to the heavy users and early adopters first, then early and late majorities? What is their estimated time for full adoption? 2. Identify three new products (introduced to the consumer and/or business markets within the last year) and classify them as either: a new-to-the-world product, a new product line, an addition to the existing product line, an improvement and/or revision of existing product(s), or a repositioning of an existing item. For each product selected, identify what challenges you think the developing company faced in marketing this product. What rate of diffusion and consumer adoption do you foresee for these new products? 3. Sonic PDA Marketing Plan Product strategy is based on the choices companies make as they select target segments and create a distinctive positioning for their brand and products. With this foundation, a marketer is ready to plan for new product development and management. Now that you have developed the marketing plan for Sonic 1000, you are considering new product options for the Sonic 2000. Answers to the following questions will help you narrow the options for the second Sonic PDA product: What specific needs of the targeted customer segments should Sonic seek to satisfy with a second PDA product? Working with other students, generate at least four new ideas for new PDA products, and indicate the criteria Sonic should use to screen these ideas. Develop the most promising idea into a product concept and explain how Sonic can test this concept. Assuming the most promising idea tested well, develop a marketing strategy for introducing the new product, including: (1) description of the target market(s), (2) product positioning, (3) objectives for sales, profit, and market share for first year, (4) channel strategy, and (5) marketing budget for first year. Into which of the six categories of new products identified by Booz, Allen, and Hamilton does Sonics first PDA product fit? Into which of these categories does the suggested second PDA product fit? What are the implications of the answers to this question for Sonics marketing plan for the second PDA?Summarize your answers to these questions in a written marketing plan or enter the answers into the Marketing Mix, Marketing Research, Break-Even, Sales Forecast, Budget Analysis, and Milestone sections of Marketing Plan Pro.ASSIGNMENTSSmall Group Assignments1. New products fail at a disturbing rate. Recent studies put the rate at 95 percent in the United States and 90 percent in Europe. In small groups (five students suggested as the maximum), find three products that have “failed” (been introduced then withdrawn from the market by the company) and suggest the cause or causes of these product failures. A listing of some of the reasons why new products fail can be found in the chapter. 2. In the opening vignette of the chapter, 3M is noted for being one of the most innovative U.S. companies. Other innovative companies exist as well. In a small group, find at least three U.S. companies that have introduced numerous new products into the marketplace over the last two years. What characteristics do all of these companies share? What has been their success rate? Individual Assignments1. Apples iPod has been a successful new product introduction for the company. It has been suggested that the introduction of iPod was targeted at the “innovators”technology enthusiasts and “early adopters.” Question: Can the iPod continue its rate of diffusion throughout the adoption curve and reach the early majorities and late major users? Or will it become stuck appealing to just those two first segments? In your answer, carefully review the sales, pricing, and products recently introduced by competitors to Apple and the Marketing Insight entitled, Developing Successful High-Tech Product. 2. The consumer-adoption process is similar to the product life cycle in its stages of introduction, growth, expansion, and decline. For example, by the time a product reaches the late majority, the product is also entering the latter stages of the product life cycle and price and promotion become increasingly important to maintaining sales. Overlaying these two graphs, comment on what their similarity means for marketers. Why do you think that the length of the adoption process and the product life cycle stages are similar? What does this similarity say about consumer buying practices? What lessons must marketers understand, in terms of new product launches, about these two? Think-Pair-Share1. In the section entitled, Creativity Techniques, the chapter defines some techniques for stimulating creativity in individuals and groups. In small groups, and using the techniques described, create at least three “new ideas” for products and services. Your group can use “lateral marketing” techniques as well. Share these new ideas with others in the class and conduct an informal poll of which ideas have the most merit for future development. 2. Companies find good ideas by researching competitors products and services. For this exercise, select a consumer product category (shampoos, soft drinks, snack foods, etc.) purchasing many of the available items in this category. Suggest some incremental innovations that you would like to see for the products/category chosen. For example, would you prefer a different form of bottling for shampoos? A different flavor for soft drinksbeer flavored cola, for example. Do any of the items in your research have glaring weakness as in its cleaning properties, smell, or taste that a company can improve upon? Why is competitive research so important for companies to undertake? MARKETING TODAYCLASS DISCUSSION TOPICSFive characteristics influence the rate of adoption of an innovation. These are relative advantage, compatibility, complexity, divisibility, and finally communicability. Other characteristics include costs, risk and uncertainty, scientific credibility, and social approval. Discuss each of these characteristics in light of how they mimic or refute the consumer-buying process discussed in Chapter 6 of this text. Is there a correlation to the consumer-buying influences and the adoption of a new product innovation? Might the marketer learn how to successfully market a new product innovation by studying consumer buying influences? Discuss the pros and cons of taking such an undertaking. END-OF-CHAPTER SUPPORT MARKETING DEBATEWhom Should You Target With New Products?Many firms target lead users or innovators with their new products, with the assumption that their adoption will trickle down to influence the broader market. Others disagree with this approach and contend that the most efficient and quickest route is to target the broader or even mass-market directly. Take a position: New products should always target new adopters versus new products should target the broadest market possible. Pro: Marketers should always target their new products to early adopters and heavy users simply because the investment is or can be great and the chances of success run very low. The heavy users or early adopters of a particular product tend to be consumer-influencers, opinion-leaders, or a combination of both. These persons have or demonstrate considerable influence in others by their assumed position or “power” in peoples lives. Personal influence is a considerable determinant of consumer purchasing decisions and as such cannot be ignored or “left to chance” in the marketing process. The heavy user and innovator clientele can also exhibit strong brand loyalty characteristics. Appealing to the family brand loyalties with the new product, can deepen or strengthen the family brand connection. Finally, due to more and more niche markets and target-market research techniques, identifying these heavy users and early adopters becomes economically feasible. As a result, the firm can affect their products broad market appeal quicker and more economically than other campaigns. The ultimate answer, of course, depends upon what is being marketed! Con: Product creation and marketing is expensive. The “odds” of success are very low, even for the best-marketed companies. Considering these two factors, a company is wise to market the new product to the widest possible audience in the shortest possible time. Targeting the mass-market via heavy TV advertisement and heavy promotional spending with channel partners will ensure that the product reaches all the adopter categories simultaneously. Todays world is fast paced and becoming even faster as the speed of communication increases. The time lag between awareness, interest, evaluation, trial, and adoption normally measured in weeks, months, and years may suddenly find itself compressed into weeks due to the speed of diffusion caused by the speed of communication. A marketer must consider this speed for his/her new product and use mass-market techniques in the product role out. MARKETING DISCUSSIONThink about the last new product you bought. How do you think its success will be affected by the five characteristics of an innovation: relative advantage, compatibility, complexity, divisibility, and communicability?Student answers will differ depending upon their last new product chosen but all answers should address each of these five characteristics. MARKETING SPOTLIGHTNokiaDiscussion Questions:1)What have been the key success factors for Nokia?a. New products that are or have relative advantage (personalization).b. Low degree of complexity.c. Divisibility.d. Compatibility.e. Communicability.f. A corporate culture that encourages new innovations and new products.g. Use of cross-functional new-product teams or “skunkworks.” 2)Where is Nokia vulnerable? a. Overexposure of their trademarked name. b. Being the market leader or market innovator invites competition to challenge their dominance.c. Use of internal associates to create new productsthese people are not the target market for their products and as a result may not fully understand the market.3)What should Nokia watch out for?a. Consumer shifts in usage of their products.b. New and/or cutting edge technology developing around them.c. Quality and functionality of their products versus key competitors.4)What recommendations would you make to senior marketing executives going forward?a. Do not rest on past successescontinue your strategic direction of investing in new products and in the process of creating new products.b. Look at the potential of products in the far futuredevelop a “decade” vision and not a “year” vision.5)What should the company be sure to do with their marketing? a. Continue to capitalize on their name and develop marketing programs that cements the name Nokia in the minds of its consumers with the concept of innovation.b. Target innovators and heavy users in product launches for diffusion and adoption across to the whole market.DETAILED CHAPTER OUTLINE Companies need to grow their revenue over time by developing new products and expanding into new markets. New product development shapes the companys future: improved or replacement products will maintain or build sales. Marketers play a key role in the new-product process by identifying and evaluating new product ideas and working with R&D and others in every stage of development. CHALLENGES IN NEW PRODUCT DEVELOPMENT A company can add new products through acquisition or development. A)The acquisition route can take three forms:1) The company can buy other companies.2) It can acquire patents from other companies.3) It can buy a license or franchise from another company.B)The development route can take two forms:1) It can develop new products in its own laboratories.2) It can contract with independent researchers or new-product development firms to develop new products. C)We can identify six categories of new products:1) New-to-the-world products.2) New product lines.3) Additions to existing product lines. 4) Improvements and revisions of existing products.5) Repositionings.6) Cost Reductions.D)Less than 10 percent of all new products are truly innovative and new to the world. 1)These products involve the greatest cost and risk because they are new to both the company and the marketplace.E) Most new-product activity is devoted to improving existing products.F) Continually innovating existing products to better satisfy consumer needs forces competitors to play catch-up. G) Launching new products as brand extensions into related product categories is one means of broadening the brand meaning.H) In an economy of rapid change, continuous innovation is necessary. I) Companies that fail to develop new products are putting themselves at risk.1)Existing products are vulnerable to:a. Changing customer needs and tastes.b. New technologies.c. Shortened product life cycles.d. Increased domestic and foreign competition.J) Most established companies focus on incremental innovation. K) Newer companies create disruptive technologies. L) Established companies can be slow to react or invest in these disruptive technologies because they threaten their investment. M) Incumbent firms must carefully monitor the preferences of both customers and non-customers over time and uncover evolving, difficult-to-articulate customer needs.N) New-product development can be quite risky. O)New products continue to fail at a disturbing rate:1) Around 95 percent in the United States.2) Around 90 percent in Europe.New products can fail for many reasons:1) Ignoring or misinterpreting market research.2) Overestimating market size.3) High development co

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