BMGT350 Chapter 8: New Products

idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialization

new product development stages

internal idea generation sources

ideation sessions, intrapreneurial programs, etc.

external idea generation sources

customer research/ comments, crowdsourcing, copying competitors, etc.

idea screening and concept development and testing

-often happens concurrently

-determines which ideas to develop further and which to drop

-typically uses market research ‘tools’ to capture customer customer perspectives, e.g., concept tests or focus groups

test marketing

-AKA Proof of Concepts (POCs), provides reality check addressing both customer reactions and operational feasibility

-can be costly plus requires significant preparations, e.g., training, communications, measurements, etc.

process selection

optimize key characteristics

-large enough to provide useful results

-demographics that mirror target population

-distribution/pattern similarities

-competition comparable

-not ‘over-tested’

introduction objective

create product awareness and trial

growth objective

maximize market share

maturity objective

maximize profit while defending market share

decline objective

reduce expenditure and milk the brand