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Marketing, lecture 7 ass.prof.I.I.Skorobogatykh (Ph.D) 1 Slide 10-2 DEVELOPING

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Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-5LECTURE QUESTIONS:Identify the consumer and business goods and services are classified and marketed.Explain the effects of different ways of viewing “newness” in new products and services.

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Слайд 1Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-2
DEVELOPING NEW PRODUCTS AND SERVICES
CHAPTER



10
Lecture 7_New

product development
Associate professor of Plekhanov REA Marketing department
Irina I.Skorobogatykh (Ph.D)

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-2DEVELOPING NEW PRODUCTS AND SERVICESCHAPTER 10Lecture 7_New product developmentAssociate professor of Plekhanov REA

Слайд 2Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-5
LECTURE QUESTIONS:
Identify the consumer and business

goods and services are classified and marketed.

Explain the effects of

different ways of viewing “newness” in new products and services.
Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-5LECTURE QUESTIONS:Identify the consumer and business goods and services are classified and marketed.Explain

Слайд 3Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-6
LECTURE QUESTIONS:
Analyze the factors that contribute

to the success or failure of a product or service.

Describe

the purposes of each step of the new-product process.
Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-6LECTURE QUESTIONS:Analyze the factors that contribute to the success or failure of a

Слайд 4Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
THE VARIATIONS OF PRODUCTS
Slide 10-10
Product Line and

Product Mix
Product Line
Product Mix
Product
Product Item
Stock Keeping

Unit (SKU)
Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)THE VARIATIONS OF PRODUCTSSlide 10-10Product Line and Product Mix Product Line Product MixProduct Product

Слайд 5Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-92
A product is a good, service,

or idea consisting of a bundle of tangible and intangible

attributes that satisfies consumers and is received in exchange for money or some other unit of value.

Product

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-92A product is a good, service, or idea consisting of a bundle of

Слайд 6Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-93
A product line is a group

of products—goods or services—that are closely related because they satisfy

a class of needs, are used together, are sold to the same customer group, are distributed through the same type of outlets, or fall w/in a given price range.

Product Line

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-93A product line is a group of products—goods or services—that are closely related

Слайд 7Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-94
The product mix is the number

of product lines offered by a company.
Product Mix

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-94The product mix is the number of product lines offered by a company.Product

Слайд 8Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
THE VARIATIONS OF PRODUCTS
Slide 10-12
Classifying Products
Type

of User
Degree of Tangibility
Consumer Goods
Business Goods
Nondurable

Good

Durable Good

Services

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)THE VARIATIONS OF PRODUCTSSlide 10-12Classifying Products Type of User Degree of Tangibility Consumer Goods

Слайд 9Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-95
Consumer goods are products purchased by

the ultimate consumer.
Consumer Goods

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-95Consumer goods are products purchased by the ultimate consumer.Consumer Goods

Слайд 10Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-96
Business goods are products that assist

directly or indirectly in providing products for resale.
Business Goods

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-96Business goods are products that assist directly or indirectly in providing products for

Слайд 11Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
THE VARIATIONS OF PRODUCTS
Slide 10-14
The Uniqueness of

Services
Intangibility
Inconsistency
Idle Production Capacity
Inseparability
Inventory

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)THE VARIATIONS OF PRODUCTSSlide 10-14The Uniqueness of Services Intangibility Inconsistency Idle Production Capacity Inseparability

Слайд 12Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-97
Idle production capacity is when the

service provider is available but there is no demand.
Idle Production

Capacity
Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-97Idle production capacity is when the service provider is available but there is

Слайд 13Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-15
The 4 I’s of service

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-15 The 4 I’s of service

Слайд 14Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
CLASSIFYING GOODS AND SERVICES
Slide 10-16
Classification of Consumer Goods

Convenience Goods
Shopping Goods
Specialty Goods
Unsought Goods

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)CLASSIFYING GOODS AND SERVICESSlide 10-16Classification of Consumer Goods Convenience Goods Shopping Goods Specialty Goods

Слайд 15Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-17
Classification of consumer goods

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-17 Classification of consumer goods

Слайд 16Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
CLASSIFYING GOODS AND SERVICES
Slide 10-19
Classification of Business Goods

Derived Demand
Production Goods
Support Goods
Installations
Accessory Equipment
Supplies

Services
Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)CLASSIFYING GOODS AND SERVICESSlide 10-19Classification of Business Goods Derived Demand Production Goods Support Goods

Слайд 17Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
CLASSIFYING GOODS AND SERVICES
Slide 10-20
Classification of Services
Delivery

by People or Equipment
Profit or Not-for-Profit Organizations
Government Sponsored

or Not
Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)CLASSIFYING GOODS AND SERVICESSlide 10-20Classification of Services Delivery by People or Equipment Profit or

Слайд 18Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-23

1. Explain the difference between

product mix and product line.
A: The product mix is the

number of product lines offered by a company. A product line is a group of products or services that: satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-23 1. Explain the difference between product mix and product line.A: The product

Слайд 19Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-24

2. What are the four

main types of consumer goods?
A: Convenience goods, shopping goods, specialty

goods, and unsought goods.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-24 2. What are the four main types of consumer goods?A: Convenience goods,

Слайд 20Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-25

3. What are the three

ways to classify services?
A: Delivery by people or equipment, profit

or not-for-profit organizations, and government sponsored or not.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-25 3. What are the three ways to classify services?A: Delivery by people

Слайд 21Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
NEW PRODUCTS AND WHY THEY SUCCEED OR

FAIL
Slide 10-26
What is a New Product?
The Term “New”
Continuous

Innovation

Dynamically Continuous Innovation

Discontinuous Innovation

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)NEW PRODUCTS AND WHY THEY SUCCEED OR FAILSlide 10-26What is a New Product? The

Слайд 22Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-29
Product “newness,” as defined by the

degree of consumer learning needed to use the product

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-29Product “newness,” as defined by the degree of consumer learning needed to use

Слайд 23Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
NEW PRODUCTS AND WHY THEY SUCCEED OR

FAIL
Slide 10-30
Why Products Succeed or Fail
Marketing Reasons for New-Product

Failures

Incomplete Market and Product Definition Before Product Development Starts

Insignificant Point of Difference

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)NEW PRODUCTS AND WHY THEY SUCCEED OR FAILSlide 10-30Why Products Succeed or Fail Marketing

Слайд 24Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
NEW PRODUCTS AND WHY THEY SUCCEED OR

FAIL
Slide 10-34
Why Products Succeed or Fail
Marketing Reasons for New-Product

Failures

Too Little Market Attractiveness

Poor Execution of the Marketing Mix

Poor Product Quality or Insensitivity to Customer Needs on Critical Factors

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)NEW PRODUCTS AND WHY THEY SUCCEED OR FAILSlide 10-34Why Products Succeed or Fail Marketing

Слайд 25Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
NEW PRODUCTS AND WHY THEY SUCCEED OR

FAIL
Slide 10-35
Why Products Succeed or Fail
Marketing Reasons for New-Product

Failures

Bad Timing

No Economic Access to Buyers

A Look at Some Failures

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)NEW PRODUCTS AND WHY THEY SUCCEED OR FAILSlide 10-35Why Products Succeed or Fail Marketing

Слайд 26Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-39

1. Describe the three kinds

of innovations that marketers use to categorize new products.
A: Continuous

innovation, dynamically continuous innovation, and discontinuous innovation.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-39 1. Describe the three kinds of innovations that marketers use to categorize

Слайд 27Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-40

2. What does “insignificant point

of difference” mean as a reason for new-product failure?
A: The

product’s characteristics did not deliver benefits to the user that were uniquely superior to those of competitors or were not deemed important to users.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-40 2. What does “insignificant point of difference” mean as a reason for

Слайд 28Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
THE NEW-PRODUCT DEVELOPMENT PROCESS
Slide 10-41
New-Product Development Process

Identifying Markets and Strategic Roles
Cross-Functional Teams
New-Product Strategy Development
Cross-Functional Teams

and New-Product Development
Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)THE NEW-PRODUCT DEVELOPMENT PROCESSSlide 10-41New-Product Development Process Identifying Markets and Strategic Roles Cross-Functional TeamsNew-Product

Слайд 29Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-98
The new-product development process consists of

seven stages a firm goes through to identify business opportunities

and convert them to a salable good or service.

New-Product Development Process

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-98The new-product development process consists of seven stages a firm goes through to

Слайд 30Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-42
Stages in the new-product development

process

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-42 Stages in the new-product development process

Слайд 31Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-44
The cross-functional new-product team

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-44The cross-functional new-product team

Слайд 32Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
THE NEW-PRODUCT PROCESS
Slide 10-52
Internal Approach
Screening and

Evaluation
External Approach
Concept Tests

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)THE NEW-PRODUCT PROCESSSlide 10-52 Internal ApproachScreening and Evaluation External Approach Concept Tests

Слайд 33Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-54

1. What step in the

new-product process has been added in recent years?
A: New-product strategy

development has been added recently by many companies to provide focus for ideas and concepts developed in later stages.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-54 1. What step in the new-product process has been added in recent

Слайд 34Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-55

2. What are four sources

of new-product ideas?
A: Customer and supplier suggestions, employee suggestions, R&D

breakthroughs, and competitive products.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-55 2. What are four sources of new-product ideas?A: Customer and supplier suggestions,

Слайд 35Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
THE NEW-PRODUCT PROCESS
Slide 10-56
Prototype
Business Analysis
Assessing the

“Business Fit” of the New Product
Big G Plus Pillsbury: Increasing Emphasis on

Synergies and Segments
Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)THE NEW-PRODUCT PROCESSSlide 10-56 PrototypeBusiness AnalysisAssessing the “Business Fit” of the New ProductBig G

Слайд 36Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
THE NEW-PRODUCT PROCESS
Slide 10-58
Test Marketing
Development
Market Testing

When Test Markets Don’t Work

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)THE NEW-PRODUCT PROCESSSlide 10-58 Test MarketingDevelopmentMarket Testing When Test Markets Don’t Work

Слайд 37Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
THE NEW-PRODUCT PROCESS
Slide 10-61
Commercialization
Speed as a Factor

in New-Product Success
Burger King’s French Fries: The Complexities of Commercialization
The Risks and

Uncertainties of the Commercialization Stage

Time to Market (TtM)

Parallel Development

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)THE NEW-PRODUCT PROCESSSlide 10-61CommercializationSpeed as a Factor in New-Product SuccessBurger King’s French Fries: The

Слайд 38Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-62
Marketing information and methods used

in the new-product process

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-62 Marketing information and methods used in the new-product process

Слайд 39Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-65

1. Describe the business analysis

stage of the new-product process.
A: Business analysis involves specifying the

features of the product and the marketing strategy needed to commercialize it—bring it to market—and making financial projections.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-65 1. Describe the business analysis stage of the new-product process.A: Business analysis

Слайд 40Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-66

2. What is a test

market?
A: A test market is a city that is viewed

as being representative of U.S. consumers in terms of demographics and brand purchase patterns, is far enough from big markets to allow low-cost advertising, and has tracking systems to measure sales.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-66 2. What is a test market?A: A test market is a city

Слайд 41Marketing, lecture 7
ass.prof.I.I.Skorobogatykh (Ph.D)
Slide 10-67

3. What is commercialization of

a new product?
A: Commercialization involves positioning and launching a new

product in full-scale production and sales and is the most expensive stage for most new products.

Concept Check

Marketing, lecture 7ass.prof.I.I.Skorobogatykh (Ph.D)Slide 10-67 3. What is commercialization of a new product?A: Commercialization involves positioning and

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