Creating and Marketing New Products and Services  book cover
1st Edition

Creating and Marketing New Products and Services

ISBN 9781482203608
Published April 11, 2014 by Auerbach Publications
440 Pages 121 B/W Illustrations

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USD $125.00

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Book Description

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.

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 p and 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 p and 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


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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.


... 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