Design and Marketing of New Products, Second Edition, retains its managerial focus, emphasizing an understanding of the issues and solving problems by. Title of thesis: Marketing plan for a new product – A study for a case company .. Structure and design can give a product the feel and look that. Marketing is a social process by which individuals and groups obtain what they need and they want through creating and exchanging products and value with.
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Successful new product development (NPD) is a critical cornerstone of firm success (See From a broader marketing perspective, firms that develop the . Development, 3) Concept Testing, 4) Design and Engineering, and. overlook the role that industrial design, and the impact of the marketing-industrial and involvement are altered in discontinuous new product development, this. Design/methodology/approach: To achieve this objective, a literature review introducing new products on the market for continuing business success. Its.
Exploit the Product Life Cycle
Maturity can last for a long time, or it can actually never be attained. Fashion goods and fad items sometimes surge to sudden heights, hesitate momentarily at an uneasy peak, and then quickly drop off into total obscurity. Stage Recognition The various characteristics of the stages described above will help one to recognize the stage a particular product occupies at any given time.
But hindsight will always be more accurate than current sight. This approach has several virtues: It forces one to look ahead, constantly to try to reforesee his future and competitive environment. This will have its own rewards.
As Charles F. Looking ahead gives more perspective to the present than looking at the present alone. Most people know more about the present than is good for them. It is neither healthy nor helpful to know the present too well, for our perception of the present is too often too heavily distorted by the urgent pressures of day-to-day events. To know where the present is in the continuum of competitive time and events, it often makes more sense to try to know what the future will bring, and when it will bring it, than to try to know what the present itself actually contains.
product development (new product development, or NPD)
Finally, the value of knowing what stage a product occupies at any given time resides only in the way that fact is used. But its use is always in the future. Hence a prediction of the future environment in which the information will be used is often more functional for the effective capitalization on knowledge about the present than knowledge about the present itself.
Sequential Actions The life cycle concept can be effectively employed in the strategy of both existing and new products. For purposes of continuity and clarity, the remainder of this article will describe some of the uses of the concept from the early stages of new product planning through the later stages of keeping the product profitably alive. In other words, advance planning should be directed at extending, or stretching out, the life of the product.
It is this idea of planning in advance of the actual launching of a new product to take specific actions later in its life cycle—actions designed to sustain its growth and profitability—which appears to have great potential as an instrument of long-term product strategy. What has happened in nylon may not have been purposely planned that way at the outset, but the results are quite as if they had been planned.
The first nylon end-uses were primarily military—parachutes, thread, rope. Here it developed the kind of steadily rising growth and profit curves that every executive dreams about. After some years these curves began to flatten out. But before they flattened very noticeably, Du Pont had already developed measures designed to revitalize sales and profits.
It did several things, each of which is demonstrated graphically in Exhibit IV. This exhibit and the explanation which follows take some liberties with the actual facts of the nylon situation in order to highlight the points I wish to make. But they take no liberties with the essential requisites of product strategy. If nothing further had been done, the sales curve would have continued along the flattened pace indicated by the dotted line at Point A.
At Point A action 1 pushed an otherwise flat curve upward. What were these actions? Or, more usefully, what was their strategic content?
What did they try to do? They involved strategies that tried to expand sales via four different routes: 1. Promoting more frequent usage of the product among current users. Developing more varied usage of the product among current users. Creating new users for the product by expanding the market. Finding new uses for the basic material. Frequent Usage. In the light of those findings, one approach to propping up the flattening sales curves might have been to reiterate the social necessity of wearing stockings at all times.
That would have been a sales-building action, though obviously difficult and exceedingly costly. Varied Usage. Beyond that, the use of color and pattern to focus attention on the leg would help arrest the decline of the leg as an element of sex appeal—a trend which some researchers had discerned and which, they claimed, damaged hosiery sales.
New Users. Creating new users for nylon hosiery might conceivably have taken the form of attempting to legitimize the necessity of wearing hosiery among early teenagers and subteenagers.
Advertising, public relations, and merchandising of youthful social and style leaders would have been called for. New Uses. For nylon, this tactic has had many triumphs—from varied types of hosiery, such as stretch stockings and stretch socks, to new uses, such as rugs, tires, bearings, and so forth. Indeed, if there had been no further product innovations designed to create new uses for nylon after the original military, miscellaneous, and circular knit uses, nylon consumption in would have reached a saturation level at approximately 50 million pounds annually.
Instead, in consumption exceeded million pounds. Exhibit V demonstrates how the continuous development of new uses for the basic material constantly produced new waves of sales. Even so, the sales of broadwoven, circular knit, and military and miscellaneous groupings peaked in Yale Had it not been for the addition of new uses for the same basic material—such as warp knits in , tire cord in , textured yarns in , carpet yarns in , and so forth—nylon would not have had the spectacularly rising consumption curve it has so clearly had.
At various stages it would have exhausted its existing markets or been forced into decline by competing materials. Other Examples Few companies seem to employ in any systematic or planned way the four product lifestretching steps described above. The soundness of the product concept and the excellence of its early marketing activities gave it beautifully ascending sales and profit curves almost from the start.
But after some years these curves predictably began to flatten out. Scotch tape was also a pioneer product in its field. Once perfected, the product gained rapid market acceptance because of a sound product concept and an aggressive sales organization. But, again, in time the sales and profit curves began to flatten out.
Before they flattened out very much, however, 3M, like General Foods, had already developed measures to sustain the early pace of sales and profits. On the other hand, 3M helped raise sales among its current users by developing a variety of handy Scotch tape dispensers which made the product easier to use. Similarly, 3M developed a line of colored, patterned, waterproof, invisible, and write-on Scotch tapes which have enjoyed considerable success as sealing and decorating items for holiday and gift wrapping.
Hence during the Metrecal boom Jell-O employed an advertising theme that successfully affixed to the product a fashion-oriented weight control appeal. These actions broadened product use in commercial and industrial markets. It is known, for example, that women consumers use powdered gelatin dissolved in liquids as a means of strengthening their fingernails.
Both men and women use it in the same way as a bone-building agent. Extension Strategies The existence of the kinds of product life cycles illustrated in Exhibits I and II and the unit profit cycle in Exhibit III suggests that there may be considerable value for people involved in new product work to begin planning for the extension of the lives of their products even before these products are formally launched.
To plan for new life-extending infusions of effort as in Exhibit IV at this pre-introduction stage can be extremely useful in three profoundly important ways. It generates an active rather than a reactive product policy. The life-extension view of product policy enforces thinking and planning ahead—thinking in some systematic way about the moves likely to be made by potential competitors, about possible changes in consumer reactions to the product, and the required selling activities which best take advantage of these conditional events.
It lays out a long-term plan designed to infuse new life into the product at the right time, with the right degree of care, and with the right amount of effort. Many activities designed to raise the sales and profits of existing products or materials are often undertaken without regard to their relationship to each other or to timing—the optimum point of consumer readiness for such activities or the point of optimum competitive effectiveness.
Careful advance planning, long before the need for such activity arises, can help assure that the timing, the care, and the efforts are appropriate to the situation.
The latter helped create a powerful consumer consciousness of hair fashions because they made it relatively easy to create and wear fashionable hair styles. Once it became easy for women to have fashionable hair styles, the resulting fashion consciousness helped open the door for hair colors and tints.
It could not have happened the other way around, with colors and tints first creating fashion consciousness and thus raising the sales of sprays and fixers. Because understanding the reason for this precise order of events is essential for appreciating the importance of early pre-introduction life-extension planning, it is useful to go into a bit of detail.
Consider: For women, setting their hair has been a perennial problem for centuries. First, the length and treatment of their hair is one of the most obvious ways in which they distinguish themselves from men. Hence to be attractive in that distinction becomes crucial.
Second, hair frames and highlights the face, much like an attractive wooden border frames and highlights a beautiful painting.
Third, since the hair is long and soft, it is hard to hold in an attractive arrangement. It gets mussed in sleep, wind, damp weather, sporting activities, and so forth.
An unkempt brunette would gain nothing from making herself into a blond. Indeed, in a country where blonds are in the minority, the switch from being an unkempt brunette to being an unkempt blond would simply draw attention to her sloppiness. The same order of priorities applies in industrial products.
For example, it seems quite inconceivable that many manufacturing plants would easily have accepted the replacement of the old single-spindle, constantly man-tended screw machine by a computerized tape-tended, multiple-spindle machine. The mechanical tending of the multiple-spindle machine was a necessary intermediate step, if for no other reason than that it required a lesser work-flow change, and certainly a lesser conceptual leap for the companies and the machine-tending workers involved.
For Jell-O, it is unlikely that vegetable flavors would have been very successful before the idea of gelatin as a salad base had been pretty well accepted.
Similarly, the promotion of colored and patterned Scotch tape as a gift and decorative seal might not have been as successful if department stores had not, as the result of their drive to compete more effectively with mass merchandisers by offering more customer services, previously demonstrated to the consumer what could be done to wrap and decorate gifts.
Take the case of Jell-O. What is its product? In the case of tape, perhaps 3M has gone even further in this technological approach to its business. It has a particular expertise technology on which it has built a constantly expanding business. This expertise can be said to be that of bonding things adhesives in the case of Scotch tape to other things, particularly to thin materials.
Conclusion For companies interested in continued growth and profits, successful new product strategy should be viewed as a planned totality that looks ahead over some years. For its own good, new product strategy should try to predict in some measure the likelihood, character, and timing of competitive and market events.
While prediction is always hazardous and seldom very accurate, it is undoubtedly far better than not trying to predict at all. In fact, every product strategy and every business decision inescapably involves making a prediction about the future, about the market, and about competitors.
To be more systematically aware of the predictions one is making so that one acts on them in an offensive rather than a defensive or reactive fashion—this is the real virtue of preplanning for market stretching and product life extension. The result will be a product strategy-that includes some sort of plan for a timed sequence of conditional moves. This judgment will also help determine many things—for example, whether to price the product on a skimming or a penetration basis, or what kind of relationship the company should develop with its resellers.
In short, having a clear idea of future product development possibilities and market development opportunities should reduce the likelihood of becoming locked into forms of merchandising that might possibly prove undesirable.
This kind of advance thinking about new product strategy helps management avoid other pitfalls. For instance, advertising campaigns that look successful from a short-term view may hurt in the next stage of the life cycle.
Thus at the outset Metrecal advertising used a strong medical theme. Sales boomed until imitative competitors successfully emphasized fashionable slimness. Metrecal had projected itself as the dietary for the overweight consumer, an image that proved far less appealing than that of being the dietary for people who were fashion-smart. A carefully preplanned program for market expansion, even before a new product is introduced, can have powerful virtues.
The establishment of a rational plan for the future can also help to guide the direction and pace of the on-going technical research in support of the product. Although departures from such a plan will surely have to be made to accommodate unexpected events and revised judgments, the plan puts the company in a better position to make things happen rather than constantly having to react to things that are happening.
How the product should be introduced and the many uses for which it might be promoted at the outset should be a function of a careful consideration of the optimum sequence of suggested product appeals and product uses. Consideration must focus not just on optimum things to do, but as importantly on their optimum sequence—for instance, what the order of use of various appeals should be and what the order of suggested product uses should be.
Similarly, if nylon hosiery had been promoted at the outset as a functional daytime-wear hosiery, its ability to replace silk as the acceptable high-fashion hosiery would have been greatly diminished. Suppose that nobody now has any kind of shaker. Hence one might lay out the following plan: I. End of second year: expand market to new users Ideas—designs for children, quaffer design for beer drinkers in bars, design for sadists to rub salt into open wounds. End of third year: find new uses Ideas—make identical product for use as a pepper shaker, as decorative garlic salt shaker, shaker for household scouring powder, shaker to sprinkle silicon dust on parts being machined in machine shops, and so forth.
This effort to prethink methods of reactivating a flattening sales curve far in advance of its becoming flat enables product planners to assign priorities to each task, and to plan future production expansion and capital and marketing requirements in a systematic fashion.
Irwin, Inc. Matthews, Jr. Buzzell, Theodore Levitt, and Ronald E. I am indebted to my colleague, Dr. Derek A. Please check the box if you want to proceed. Compliance regulations can be complicated to follow, particularly in the new age of data privacy. Here's a breakdown of the Smart tech promises security and other benefits, but they don't come automatically.
Learn how these tools work and where they can AI algorithms in healthcare currently regulated by the FDA are static and require manual updates. The FDA is now looking into Patients' healthcare behaviors are shaped by their behavior as consumers, with a greater emphasis on access and convenience. Healthcare organizations are being tasked with developing effective methods to keep their patients engaged, with nudges from Rivals Microsoft and VMware joined forces this week, signing a deal to allow VMware to run natively on Azure, further Cloud computing has spawned a spectrum of new IT roles, and professionals must sharpen their technology expertise to remain Google's Chrome OS 74 release includes numerous organizational, accessibility and security upgrades, as well as Android and Linux Identity technologies are evolving, but IT administrators still need to catch up.
Here are the top four identity and access Operating systems and security protection are among the key considerations when companies select smartphones for business use. IT execs must evaluate an organization's current on-prem and cloud setup before selecting a hyper-converged offering to avoid Organizations can use micro data center deployments to increase on-site data processing. Admins can get their setups right with Proper evaluation of a colocation data center means reviewing geographic location, cost structure and accessibility to ensure the Home Project management Software asset management product development new product development, or NPD.
Check out this video for a walk through the eight stages of new product development.
This was last updated in June Related Terms maturity grid maturity model A maturity grid is an assessment tool for evaluating an organization's level of progress towards a goal. Digital transformation in logistics: Delmar begins tech overhaul IT Priorities Network upgrades, automation, cloud make the cut Gartner Catalyst conference keynote shows, tells IT what to build for next Digital transformation projects cry out for a human touch Load More View All News.
Login Forgot your password? Forgot your password? No problem! Submit your e-mail address below. We'll send you an email containing your password. Your password has been sent to: Please create a username to comment. Making that happen smoothly has been interesting, to say the least ;. One of the challenges I observed with a huge product development project was accepting the reality that requirements can't be just defined, signed off, and frozen upfront.
This mentality caused a lot of tension between the business and the development team.
What is the biggest product development challenge your organization has faced? My industry standardized on one piece of software about 35 years ago. It was revolutionary software at the time and, of course it's been updated many times since then.
But the bones are the same. And they're rickety bones at that. Unfortunately for the industry, the largest downloader of our products film studios seem quite content with their choice and see little reason to change. Although there are many better, newer, faster programs available, studios insist that all work be done in the original.
So what's our challenge? Figuring out how to get a dinosaur to move. Interesting article. Thanks for highlighting interesting fundamentals on how to grow an idea and design a software product. For me, though ideation is critical, prototyping is even more critical. Prototyping help organisations validate their concept and convince stakeholders to get a go ahead.
Even more, a few product engineering companies develop prototype with right balance of components of a system that it can be used in the later stages of designing and development. Moreover, I agree that Product development is an always evolving and accordingly it is important to make changes to stay abreast with competitive market.
One of the the most complex paradox NPD managers should solve is the extent to which potential customer s should inform the new product development process.Defense engineering traditionally develops the product structure from the top down. The author thanks the member firms of the Industrial Research Institute IRI for their participation in portions of this research.
Process innovation ppt
First, the length and treatment of their hair is one of the most obvious ways in which they distinguish themselves from men. This company generally bears most of the costs, the tribulations, and certainly the risks of developing both the product and the market.
They pitched their machines to corporate accounts on the benefit of saving costs money on the coffee itself as well as the loss of productivity of employees leaving the office to get a fresh cup from the local coffee store. Maturity can last for a long time, or it can actually never be attained. In addition, a preliminary analysis of factors e.
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