Introducing New

Market Offerings
MARKETING MANAGEMENT, 15TH EDITION
PHILIP KOTLER
KEVIN LANE KELLER
CHAPTER QUESTIONS
1. How can new products be categorized?
2. What challenges does a company face in developing new products
and services?
3. What organizational structures and processes do managers use to
oversee new-product development?
4. What are the main stages in developing new products and services?
5. What is the best way to manage the generation of new ideas?
6. What is the best way to manage concept and strategy development?
7. What is the best way to manage the commercialization of new
products?
8. What factors affect the rate of diffusion and consumer adoption of
newly launched products and services?
NEW PRODUCT OPTIONS

MAKE

BUY
TYPES OF NEW PRODUCTS

 NEW-TO-THE-WORLD
 NEW PRODUCT LINES
 ADDITIONS
 IMPROVEMENTS
 REPOSITIONINGS
 COST REDUCTIONS
CHALLENGES IN NEW PRODUCT
DEVELOPMENT
 THE INNOVATION IMPERATIVE
 Continuous innovation is a necessity
CHALLENGES IN NEW PRODUCT
DEVELOPMENT
 NEW PRODUCT SUCCESS
 Incremental innovation
 Disruptive technologies
 Success factors
 Unique, superior product
 Well-defined product concept
 Technological and marketing synergy
 Quality of execution in all stages
 Market attractiveness
CHALLENGES IN NEW PRODUCT
DEVELOPMENT
 NEW PRODUCT FAILURE
 Fragmented markets
 Social, economic and governmental constraints
 Cost of development
 Capital shortages
 Shorter required development time
 Poor launch timing
 Shorter product life cycles
 Lack of organizational support
ORGANIZATIONAL ARRANGEMENTS

 BUDGETING FOR NEW PRODUCT DEVELOPMENT

 Finance as many projects as possible
 Conventional percentage-of-sales figure
 Spend what the competition spends
 Work backwards
ORGANIZATIONAL ARRANGEMENTS

 ORGANIZING NEW-PRODUCT DEVELOPMENT

 CROSS-FUNCTIONAL TEAMS
 CROWDSOURCING
 STAGE-GATE SYSTEMS
MANAGING THE DEVELOPMENT
PROCESS: IDEAS
 GENERATING IDEAS
 Interacting with employees
 Interacting with outsiders