Strategic

Marketing
Chapter # 08
Planning for
New Products
 PLANNING FOR NEW
PRODUCTS
 Importance of New Products
 Customer Driven Process
 Steps in New Product Planning
 Idea Generation
 Screening/Evaluating/and Business
Analysis
 Product and Process Development
 Marketing Strategy and Market Testing
 Commercialization
 Variation in the Generic Planning Process
 Importance of New Products
 Innovation at top of potential value
drivers (Ernst & Young)
• Innovation initiatives extend beyond
new goods and services to include ideas,
processes, and business practices

 Organizations must build a culture of

innovation
 New Product Planning as a
Customer Driven Process
 New product classifications:
1. Newness to market solar panel ac
2. Newness to company sufi beuti soap
 New product types:
• Transformational innovations pentium
1

• New product category solar panel

geaser
• Product line extensions coke, diet coke
• Incremental improvements kenwood cd
player with usb
 Finding Customer Value
Opportunities
 Matching Capabilities to Customer
Value Opportunities
• Fit between capabilities and product
offering pakaims offers MBA banking and
finance

 Transformational Innovations
• “new-to-the-world” ideas
• Customers not always the best guides
 Characteristics of Successful
Innovations
Creating an Innovative Culture
nokia various models

Leveraging Selecting The Right

Capabilities Innovation Strategy
Pepsi vs coke
STRATEGIC Pepsi launches
INITIATIVES Mineral water

Making Resource
Commitments
Trend mobiles
fails Developing and Implementing
Effective New Product Processes
 Developing an Innovation
Culture
 Innovation Workshop for top executives to
develop an innovation plan.
 Innovation Statement highlighting
objectives and senior management’s role
and responsibilities.
 Training programs for employees and
managers.
 Communicate the priority of innovation.
 Speakers to expose employees to
innovation authorities.
 NEW PRODUCT PLANNING
PROCESS
Customer
Needs
Analysis

Screening
Idea Business
And
Generation Analysis
Evaluation

Marketing
Product
Strategy
Development
Development

Testing

Commercialization
 Achieving Cross-Functional
Interaction and Coordination

R&D

Operations Marketing

Finance
 Direct
Alliances/
Search
Acquisition/ Technological
Licensing Innovation

METHODS
National OF Exploratory
Policy GENERATING Customer
Studies
IDEAS

Creative Facilitating
Methods Lead User
Linking Analysis
Marketing
and Technology
SCREENING, EVALUATING, AND
BUSINESS ANALYSIS
IDEA GENERATION

SCREENING
(fit/feasibility)

CONCEPT EVALUATION

BUSINESS ANALYSIS
PRODUCT AND PROCESS
DEVELOPMENT
NEW
PRODUCT
CONCEPT

PRODUCT MARKETING
DEVELOPMENT STRATEGY
AND DEVELOPMENT
USE
TES
TIN
G MARKET
TESTING

LAUNCH
 Does it have the
required attributes?

Verify PURPOSE OF Ideas for

Claims
USE TESTS improvements

Identify use
situation
s
 MARKETING STRATEGY AND
MARKET TESTING
 Marketing Strategy Decisions
• Market Targeting
• Positioning Strategy

 Market Testing Options

• Simulated Test Marketing
• Scanner –Based Test Marketing
• Conventional Test Marketing
• Testing Industrial Products
• Selecting Test Sites
• Length of the Test
• External Influences
 COMMERCIALIZATION
 The Marketing Plan
• Complete marketing strategy
• Responsibilities for execution
• Cross –functional approach

 Monitoring and Control

• Real –time tracking
• Role of the Internet
• Include product performance metrics
with performance targets