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?2000 Prentice Hall Objectives Challenges in New Product Development (NPD) Organizational Structure NPD Stages Management of NPD Diffusion Adoption of New Products Probability of Success Probability of technical completion Overall probability of success = Probability of commercialization given technical completion X Probability of economic success given commercialization X Concept Development Testing 1. Develop Product Ideas into Alternative Product Concepts 2. Concept Testing - Test the Product Concepts with Groups of Target Customers 3. Choose the Best One High price/oz. Low in calories Low price/oz. High in calories Product Brand Positioning (a) Product-positioning map (breakfast market) Expensive Slow Inexpensive Quick Bacon and eggs Pancakes Instant breakfast Cold cereal Hot cereal b) Brand-positioning map (instant breakfast market) Brand C Brand B Brand A Conjoint Analysis Brand name -- -- -- -- -- Utility 1.0 0 | | | K2R Glory Bissell Retail Price Utility -- -- -- -- -- 1.0 0 | | | $1.19 $1.39 $1.59 Good Housekeeping Seal? Utility 1.0 -- -- -- -- -- 0 | | No Yes Utility Money-Back Guarantee? 1.0 -- -- -- -- -- 0 | | No Yes Consumer-Goods Market Testing Sales- Wave Research Test offering trail to a sample of consumers in successive periods. Simulated Test Market Test in a simulated shopping environment to a sample of consumers. Standard Test Market Full marketing campaign in a small number of representative cities. Controlled Test Market A few stores that have agreed to carry new products for a fee. Commercialization When Where Whom Product Price Place Promotion 2 1/2% Innovators 13 1/2% Early adopters 34% Early majority 34% Late majority 16% Laggards Time of adoption innovations Adopter Categorization of the Basis of Relative Time of Adoption of Innovations Major Decisions in International Marketing Deciding whether to go abroad Decidin
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