Dog on the roof like Snoopy

Frank Ocean Finesses Def Jam Records for 5 minutes straight

Ch 11

COLD VISIONS

New-to-the-world products (product category)

-Create entirely new market
-Smallest category of new products

New-product lines

-Previously not offered products
-Enters established market

Additions to existing product lines

-Supplement established product line

Improvements or revisions of existing products

-Established product
-Slightly different features

Repositioned Products

-Existing products
-Targeted at new markets

Lower-Priced Products

-Similar performance to competitors
-Priced lower

New-Product Strategy (New-Product Development Process)

-Links development process with marketing objectives
-Provides guidelines for new-products
-Specifies roles new products play

Idea Generation (New-Product Development Process)

-Customers needs and wants
-Employees know processes of company
-Distributors are aware of customer needs
-Competitors are monitored
-R&D is conducted for product modification
-Consultants from other companies recommend ideas
-Other experts develop ideas from range of sources

Idea Screening

-Eliminates ideas inconsistent with organization
-Concept Test: New-product idea evaluation before prototype creation

Business Analysis

-Sales figures are calculated
-Costs and revenues estimated + compared
-Economic Trends Analyzed
-Market share forecasted

Development

-R&D, marketing, engineering, production, suppliers work together
-Simultaneous Product Development
-Firm should start sketching marketing strategy
-Prototypes made

Test Marketing

-Limited introduction of product
-Cities chosen as test sites
-Test site reflects market conditions
-Takes a year or longer
-Can exceed 1 million
-Simulated lab market testing is the alternative
-It’s cheaper

Commercialization

-Final stage in new-product development
-Order production materials + equipment
-Starting production
-Building inventories
-Shipping products

Products Success vs. Failure

-Do not offer discernible benefit
-Failure to meet customer desires
-Overestimation of market size
-Incorrect targeting/positioning
-Bad pricing
-Inadequate distribution
-Poor promo
-Offering an inferior product

Absolute Failure

Company cannot recoup costs related to product

Relative Product Failure

When