Monday, April 16, 2007

Introducing new market offerings



creating successful long-term growth -- Chapter 20 -- summary



Once the company has stagnated the market, chosen its target customer groups and identified their needs, and determine its desired market positioning, it is ready to develop and launch appropriate new products. Marketing should participate with other departments and 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 product managers, 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
  • market strategy development
  • business analysis
  • product development
  • market testing
  • commercialization.

At each stage, the company must determine whether the idea should be dropped or move to the next stage.



The consumer adoption process is the process by which consumers 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 I 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.

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