Chapter 20: Introducing New Market Offerings Flashcards
Shortage of ideas. Fragmented markets. Social and governmental constraints. Cost of development. Capital shortages. Faster required development time. Shorter product life cycles.
Factors that Limit New Product Development
A cross-functional group charged with developing a specific product or business.
Venture Team
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.
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.
Ways to Find Great New Ideas
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.
Drawing Ideas from Customers
Attribute Listing
Forced Relationships
Reverse Assumption Analysis
New Contexts
Creativity Techniques
A list of the attributes of an object that is then modified.
Attribute Listing
Means to list several ideas and to consider how each relates to the others.
Forced Relationships
Involves starting with a problem, and then identifying the dimensions, the medium, and the power source.
Morphological Analysis
List all the normal assumptions about an entity and then reverse them.
Reverse Assumption Analysis
To see what dimensions occur in relationship to the concept for as far as can be mapped.
Mind Mapping
Combines two product concepts or ideas to create a new offering.
Lateral Mapping
Communicability and Believability Need Level Gap Level Perceived Value Purchase Intention User Targets, Purchase Occasions, Purchasing Frequency
Concept Testing
Means presenting the product concept to target consumers, physically or symbolically, and getting their reactions.
Concept Testing
Are the benefits clear to you and believable?
If the scores are low, the concept must be refined or revised.
Communicability and Believability
Do you see this product solving a problem or filling a need for you?
The stronger it is, the higher the expected consumer interest.
Need Level
Do other products currently meet this need and satisfy you?
The greater it is, the higher the expected consumer interest.
Gap Level
Would you (definitely, probably, probably not, definitely not) buy this product? Consumers who answered the first three questions positively should answer "Definitely" here.
Purchase Intention
Is the price reasonable in relationship to value?
The higher it is, the higher is expected consumer interest.
Perceived Value
A method for deriving the utility values that consumers attach to varying levels of a product’s attributes.
Has become one of the most popular concept-development and testing tools.
Conjoint Analysis
Prototype Testing
Alpha Testing
Beta Testing
Market Testing
Tests the product within the firm to see how it performs in different applications.
Alpha Testing
Moved to after refining the prototype to test with consumers.
Beta Testing
Timing of Market Entry
First Entry
Parallel Entry
Late Entry
Enjoy a first mover advantage.
First Entry Firms
Timed with the competitor’s entry.
Parallel Entry
Can benefit from seeing how the competition fares.
Late Entry
An individual’s decision to become a regular user of a product.
Adoption
Stages in the Adoption Process
Awareness Interest Evaluation Trial Adoption
The degree to which an individual is relatively earlier in adopting new ideas than the other members of his social system.
Level of Innovativeness
Relative Advantage Compatibility Complexity Divisibility Communicability
Characteristics of an Innovation
The degree to which the innovation appears superior to existing products.
Relative Advantage
The degree to which the innovation matches the values and experiences of the individuals.
Compatibility
The degree to which the innovation is difficult to understand or use.
Complexity
The degree to which the innovation can be tried on a limited basis.
Divisibility
The degree to which the benefits of use are observable or describable to others.
Communicability
New to the World Additions Improvements Repositioning Cost Reduction
Categories of New Products
