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New ProductDevelopment
1Crawford, ‘New Products Management’, 2003
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New-to-the-world products:◦ Inventions; the frst car, the laser printer, the
electronic typewriter, etc.
◦ Revolutionize existing product categories;
A product category that osoletes the previousone !electronic typewriter versus "#$.
Re%uire consu&er learning.
New category entries:◦ "roducts are not new to the world.◦ #o&pany's frst sha&poo.
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New Products
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Additions to the product line:◦ "roducts that are line extensions.
"roduct i&prove&ents:
◦ #urrent products &ade etter. Repositioning:
◦ "roducts targeted (or a new use) application.
*ariations are not co&&only accepted as newproducts, e.g. New to a country, New channelo( distriution, "ac+aging i&prove&ents,ierent ðod o( &anu(acturing.
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New Products
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Al&ost anything &ar+eted today has atangile and an intangile co&ponent.◦ ax &achines are tangile, ut they yield a
service.
/an+s organize their &ar+eting andservice innovation around 0product&anagers'.
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New Product Vs. NewService
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Announce&ent o( need (or new product. 1ar+eting develops product defnition. "roduct defnition is sent to product engineering
(or specifcations. "roduct engineering passes product specifcations
to 1anu(acturing. 1anu(acturing atte&pts to set up processes to
produce the new product. istriution develops inventory and transportation
plans. 2ervice support sta starts ta+ing care o(
custo&er %ueries and co&plaints.
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TYPICAL NEW PRD!CTDEVELP"ENT
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Idea (or new product co&es (ro& insidethe co&pany !(ro& the top &anage&ent$.
1ar+eting develops a product defnitionwithout proper research. esign engineering; (eatures versus
e3cient production.
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#LAWS IN TYPICALDEVELP"ENT PRCESS
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istriution and service support tea& fndthe&selves in troule.
4ac+ o( coordination results in productredesigns. #onsu&ers start co&plaining when
product is launched.
4ac+ o( coordination; responsiility (ornew product develop&ent (ailure.
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#LAWS IN TYPICALDEVELP"ENT PRCESS
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5pportunity identifcation 6 selection. #oncept generation. #oncept)pro7ect evaluation. evelop&ent. 4aunch.
New Product DevelopmentProcess
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irection)nature o( the usiness. 5ngoing &ar+eting planning. 5ngoing corporate planning.
#reatively recognizing opportunities. 5pportunity analysis:
◦ 8nderutilized resources, new resource, external orinternal &andate.
!
pportunit$ Identi%c&tion 'Selection
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#reating new product ideas. "roduct concepts rely on opportunity
identifcation.◦ 5pportunity: 9people &oving their (a&ilies over
long distances.
◦ #oncept generation: 2tudy those people, theirprole&s, fnd solutions y generating productconcepts.
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Concept (ener&tion
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1ar+eting plan is s+etched. Resource preparation. Industrial design.
"rototype develop&ent. #o&prehensive usiness analysis e(ore
launch stage.
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Development
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T+e End.
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