Lecture four Flashcards
What are the rates of success of new products?
80 to 95% of new product introductions fail
What are the steps of the product life cycle (PLC)
Development, introduction, growth, maturity, decline
What are the steps of the technology adoption life cycle?
Innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%), laggards (16%)
What are the seven steps of the traditional new product development model
- idea generation
- product screening
- business case analysis
- product/strategy/plan development
- test market
- product launch
- hand off to innovation/translation team (translate to different and new market segment)
Name two product development processes.
Engineering Driven - assumes customers buy technology,relates to the “Product Concept” of Marketing, “technology push”
Market/Customer Driven - assumes customers seek solutions, relates to the “Marketing Concept” of Marketing,“market pull”
Describe Cooper’s Stage gate model.
It consists of checkpoints, or ‘stages’ on a path of product development. Each checkpoint has a gate, ensuring a specific goal is completed and still viable, then allowing you to go to the next stage.
Why do new products fail?
The Missing Marketing Plan
No Real Need Exists
The Market Size is Overestimated or a “Me Too” Product Fails to Penetrate the Market
The Offering Fails to Meet Needs Adequately
Market Will Not Pay
Contrary Perceptions of Innovation
What’s a value network?
A set of connections between organizations that focuses on collaboration and interaction for the purpose of benefiting the entire group and delivering superior customer value.
What is entrepreneurial marketing?
Something that is new, useful, improves something that already exists, doing something before others do it, managing risks, actively looking for opportunities and evaluating how attractive they are.
What is the entrepreneurial cycle?
- Opportunity recognition and idea generation
- Business idea development
- Experimentation and exploration, business planning, and obtaining resources
- Launch
- Feedback
- Revise
What are some common pitfalls in entrepreneurial marketing?
No business case “Build it and they will come” “Ivory Tower” design Technical focus Over-engineered Under-funded No channel Low market insight Missing customer validation Group Think The Untouchables
How can you be successful in entrepreneurial marketing?
Focus on Creating Value,
Create use cases for customer value,
Critical features and functions to compete,Prove the Concept, Win Your First Business
There are 5 innovation strategies, name and define all 5.
Incremental innovations - take the existing product and offering and make small-step improvements
Radical innovations - produce large changes in the functions and performance of a product or offering
Breakthrough innovations - create a different kind of product or offering that produces a new kind of value
Disruptive Innovation - Product or business idea creates new value that disrupts a market or industry
Sustaining Innovation - Improves existing technologies or product offerings within a market or industry
How do you implement destructive innovation?
- separate the business unit from the existing customers and find new customers who really want the offering.
- Create a smaller business unit to address the new, smaller market size of this offering.
- Use an innovative, exploratory approach to find the right market and how to address them.
- create new decision making rules
- Develop the markets that want the offering, don’t try to sell this product in the old mainstream market.
What is the relationship between radical/incremental and disruptive/sustaining innovation?
While the relationship is not perfect, there tends to be more incremental change associated with sustaining innovations and disruptive change has more radical innovation.
