Creating and Marketing New Products and Services: 1st Edition (Hardback) book cover

Creating and Marketing New Products and Services

1st Edition

By Rosanna Garcia

Auerbach Publications

438 pages | 121 B/W Illus.

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pub: 2014-04-11
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It’s no secret that some of the most successful companies, such as 3M, Procter & Gamble, Microsoft, and Mercedes-Benz, are also known for their new product development strategies. Creating and Marketing New Products and Services teaches the key business and marketing principles needed to successfully design and launch new products and services in today’s global market. It begins by providing the foundation required to understand the role of new product development in the innovating organization.

The book emphasizes marketing research techniques that can help firms identify the voice of the customer and incorporate these findings into their new product development process. It addresses the role of sustainability in innovation, open innovation strategies, and international co-development efforts of new products and services. Explaining how to manage the development and marketing of new products and services, this book will teach you how to:

  • Select a new product strategy that matches the needs of your organization
  • Set up a disciplined process for new product development
  • Define target market opportunities and search out high potential ideas
  • Understand customer needs, structure them, and prioritize the needs to clearly define the benefits and values that your product will deliver
  • Integrate marketing, engineering, R&D, and production resources to design a high-quality product that satisfies customer needs and delivers value
  • Forecast sales before market launch based on testing of the product and the marketing plan

The concepts discussed in the book can help to boost innovation and improve the performance of any type of organization. Some of the concepts presented are generic and others must be modified for each application. Together, they can lead to greater profitability and reduced risk in the new product development activities within your organization.


an important resource for brand managers, product development teams, and marketing scientists who need to understand the analytic methods to designing new products. Thank you, Rosanna for this effective and up-to-date new product development text. We recommend it to students, managers, and analysts interested in successfully developing new products.

—Professor John Hauser and Professor Glen Urban, MIT Sloan School of Management

Table of Contents

The Proactive New Product Development Process

Learning Objectives

Introduction: Importance of New Product Success

New Product Development Is Risky

Service Economy

Stage-Gate: A Systematic, Sequential, Iterative Process

The Fuzzy Front End: Discovery through Scoping

Design Phase: Building the Business Case through Development

Testing and Validation

Launch and Postlaunch Review

Criticisms of Sequential Processing

What Is a New Product Exactly? How Can They Be Classified?

Types of New Products and Customizing the Development Process

Why Innovation Type Matters

Avoiding Failures

Marketing’s Involvement in the Stage-Gate Process

The New Product Manager

Goals of the Text

Chapter Summary


Review Questions

Assignment Questions


New Product Innovation Strategy

Learning Objectives


Corporate Strategy Dictates Innovation Strategy

Innovation Strategy

Innovation Arena


Risk versus Reward

Industrial Setting

Innovation Strategy Dictates the New Product Development Strategy

Reactive versus Proactive Innovation Development Process

Proactive Processes

Which Innovation Strategy to Use?

New Product Portfolio Management

Tools for Portfolio Management

Economic Models

Portfolio Maps

Strategic Buckets

Portfolio Review Process

The Formal Process versus Reality

Chapter Summary


Review Questions

Assignment Questions


Opportunity Identification and Idea Generation: The Fuzzy Front End

Learning Objectives


Opportunity Identification

Step 1: Generating Product Ideas

Identifying Lead Users

Ideation Methods

Scenario Generation

Problem Analysis

Crowdsourcing for New Product Ideas


Inventive Templates

Individual Creativity

Group Creativity

Step 2: Aligning Opportunities with NPD Strategy

Portfolio Alignment

Step 3: Market Identification

Growth Potential

Economies of Scale

Competitive Attractiveness




Step 4: Market Selection


Selecting the Best Opportunities

Chapter Summary


Review Questions

Assignment Questions

Creativity Resources


Out of the Fuzzy Front End into the Design Phase

Learning Objectives


Go/No Go Decision Making

Idea Screening Gate

Idea Selection Process

Number of Ideas

Scoping: The First Stage

Scoring Models

Voice of the Customer Analysis

Experiential Interviews

Empathic Design and User Observation

Elicitation Techniques

Benefit Chains

Web-Based "Eavesdropping"

Evaluating the Data

Building the Business Case

Situational Analysis

Product Definition

Project Justification

Project Plan

Chapter Summary


Review Questions

Assignment Questions


The Concept Test

Learning Objectives


What Is a Concept Test?

Conducting the Concept Test

Step One: Determine Goal of Concept Test

Concept Diagnostics



Step Two: Select a Survey Population

Sampling Guidelines:

Step Three: Select Most Appropriate Survey Format

Step Four: Prepare the Concept Statement

Words Only

Visuals Only

Words and Visuals

(Virtual) Reality

Information Acceleration

Impact of Concept Presentation

Step Five: Develop the Questionnaire and Conduct the Survey

Purchase Intention Questions

Overall Product Diagnostics

Specific Attribute Questions

Profiling Variables

To Include Pricing or Not

Step Six: Interpret and Report the Results

Diagnostic Information

Using the Purchase Intention Questions

Sales Forecasts Based on Purchase Intent

Forecasting New Product Sales from Likelihood of Purchase Ratings

Creating a Positioning Statement

Concerns with Concept Tests

Chapter Summary


Review Questions

Assignment Questions


Concept Description Example for Th!nk Electric Vehicle

TH!NK City Specifications:

Purchase Intention Questions


Perceptual Maps

Learning Objectives


Customers Buy Based on Perceptions

Benefits and Value

Perceptual Maps

Types of Perceptual Maps

Determinant Gap Map

Attribute Rating Perceptual Map

Determining the Number of Factor Dimensions

Identifying the Factor Dimensions

Producing the Attribute Rating Perceptual Map

Estimating the Position of a New Product

Factor Analysis Summary

Identifying a New Dimension (Factor)

Overall Similarity Gap Maps and Other Mapping Techniques

Overall Similarity Gap Map

Value Maps and Customer Priorities

Value Maps

Perceptual Dimensions and Price

Use of Value Maps

Chapter Summary


Review Questions

Assignment Questions


Estimating Sales Potential

Learning Objectives


Forecasting Techniques

Judgment Techniques

Quantitative Techniques

Time Series Model

Causal/Regression Modeling

Other Quantitative Techniques

New Product Forecasting Strategy

Forecasting Using Purchase Intention

Repeat Purchasing

ATAR with Cannibalization

Probability Scales

Forecast Prediction

Diffusion of Innovation

Estimating pand q

Using Sales History

Using Historical Estimates of p and q

Forecasting by Analogy

Regression to Estimate Purchase Probabilities

Estimation of Parameters

Managerial Use of the Model

Chapter Summary


Review Questions

Assignment Questions


Appendix A

Additional Forecasting References

Sources for Estimates of Bass Model pand q

Appendix B


The Proactive New Product Development Process

Learning Objectives



Voice of the Engineer blending with Voice of the Customer

Generate Product Designs

Product Architecture and Platform in Product Design

Product Platform

Product Architecture

Technology Roadmapping

Design Thinking and the NPD Process

Problem-Solving Approach or Process

Process and Methods

Process Stages

A Creativity Approach

A User-Centered Approach That Brings Design into the Business World


Role of Marketing in Design

Chapter Summary


Review Questions



Additional References for Design Thinking



Product/Market Testing

Learning Objectives


Reducing Risk

Product Use Testing

Preuse Reactions

Alpha Testing

Beta Testing

Conducting Product Use Tests

Single Product Evaluation

Blind Tests

Experimental Variations

Issues in Product Use Tests

Summary of Product Use Testing Procedures

Market Components Testing

Testing Advertising

Criteria for Evaluating Advertising Copy

Testing Price

Conjoint Study

Contingent valuation

Transaction Data


Testing Distribution Options

Summary of Marketing Components Testing

Premarket Testing


Simulated Test Market (STM)

Speculative Sale

Trial/Repeat Measurement

Home Delivery Measures

Laboratory Measurement

Controlled Sales

Informal Selling

Direct Marketing


Scanner Market Testing

Summary of Premarket Testing

Market Testing

Test Markets


Geographical Segmentation

Industry Segmentation

Channel Segmentation

Market Testing for Durable Consumer Goods and Industrial Products/Services

Information Acceleration

Summary of Market Testing

Chapter Summary


Review Questions

Assignment Questions


Into the Market: Launch

Learning Objectives


Prelaunch Strategizing and Tactics

Strategic Launch

Product Concerns

Business Strategy

Market Segments

Product/Service Design

Launch Timing


Organizational Concerns

Company Structure


Speed to Market

NPD Team Structure

Market Orientation

Industry Concerns

Technical Environment





Tactical Launch Planning

Product Name and Branding Strategies

Checklist of Criteria for a Good Product Name

Check list of things to Avoid

Branding Decisions

Brand Extensions





Pricing for New-to-the-World Products

Launch Timing

Launch Management

Monitoring Launch

Postlaunch Analysis

Product Life Cycle Management

Product Failure

Chapter Summary


Review Questions

Assignment Questions


Pricing Resources


Global New Product Development; Gloria Barczak and Rosanna Garcia

Learning Objectives

Organizing for New Product Development

Physical Proximity of NPD Teams

Open Innovation and Global Markets

Innovation in Emerging Markets

Reverse Innovation


Launching Global New Products

Global New Product Launches

Global Brands

Branding Strategies

Standardization or Adaptation


Consumer Perceptions of Global Brands

Protecting Your Global Brand

Chapter Summary


Review Questions



Sustainability in Innovation; Marius Claudy and Rosanna Garcia

Learning Objectives


Finite Resources

Stakeholder Pressure and Growing Transparency

The Business Case for Sustainability

Costs Reduction

Complying with Regulation

Reputation and Brand Value


Attract and Retain Employees

Attract Capital Investment

Capitalize on New Opportunities

Developing Sustainability Strategies

Principles Underlying Sustainability Product Design

1st Principle: Reducing Use of Finite Materials

2nd Principle: Eliminate Use of Toxic Materials

3rd Principle: Minimize Physical Destruction

4th Principle: Look to Solve Social Problems

Four Paradigms for Sustainable New Product Development

Product Improvement and Redesign

Functional and System Innovation

System Innovation and the Role of Services

Product-Oriented Services

User-Oriented Services

Results-Focused Services

Marketing Sustainable Products

Eco Labels

Chapter Summary


Review Questions

Assignment Questions:


Online Video Presentations

H P Bulmers Ltd. Case Study



About the Author

Rosanna Garcia, PhD, is a professor of marketing and innovation at North Carolina State University. She received her PhD from Michigan State University with a major in Marketing and a minor in Complex Systems. Her undergraduate degree in chemical engineering and an MBA with a marketing focus provided her with a background that she utilized in technology-driven companies to develop and market new products and services. After more than ten years in industry, she moved to academia to research topics, such as the diffusion of resistant innovations, the role of environmental sustainability in the innovation process, and the changing role of technology in the marketplace. Dr. Garcia is published in numerous academic journals including Sloan Management Review. She continually updates her knowledge on the innovation process through consulting at companies worldwide.

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Quality Control
BUSINESS & ECONOMICS / Sales & Selling