20Introducing New Market Offerings

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Factors That Limit New Product Development

Shortage of ideas Fragmented markets Social and governmental constraints Cost of development Capital shortages Faster required development time Shorter product life cycles

What is a Venture Team?

A venture team is a cross-functional group charged with developing a specific product or business.

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Criteria for Staffing Venture Teams

Desired team leadership style Desired level of leader expertise Team member skills and expertise Level of interest in concept Potential for personal reward Diversity of team members

Figure 20.1 New-Product Development Decision Process

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Ways to Find Great New Ideas

Run informal sessions with customers Allow time off for technical people to putter on

pet projects Make customer brainstorming a part of plant

tours Survey your customers Undertake “fly on the wall” research to

customers

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Drawing Ideas from Customers

Observe customers using product Ask customers about problems with products Ask customers about their dream products Use a customer advisory board or a brand

community of enthusiasts to discuss product

Consumer Goods Market Testing

Sales-Wave Research Simulated Test Marketing Controlled Test Marketing Test Markets

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Test Market Decisions

How many test cities? Which cities? Length of test? What information to collect? What action to take?

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What is Adoption?

Adoption is an individual’s decision to become a regular user of a product.

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Stages in the Adoption Process

Awareness

Interest

Evaluation

Trial

Adoption

Figure 20.7 Adopter Categorization on the Basis of Relative time of Adoption

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