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.
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
Glossary
Review Questions
Assignment Questions
Endnotes
New Product Innovation Strategy
Learning Objectives
Introduction
Corporate Strategy Dictates Innovation Strategy
Innovation Strategy
Innovation Arena
Resources
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
Glossary
Review Questions
Assignment Questions
Endnotes
Opportunity Identification and Idea Generation: The Fuzzy Front End
Learning Objectives
Introduction
Opportunity Identification
Step 1: Generating Product Ideas
Identifying Lead Users
Ideation Methods
Scenario Generation
Problem Analysis
Crowdsourcing for New Product Ideas
Brainstorming
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
Investment
Reward
Risk
Step 4: Market Selection
Substitution
Selecting the Best Opportunities
Chapter Summary
Glossary
Review Questions
Assignment Questions
Creativity Resources
Endnotes
Out of the Fuzzy Front End into the Design Phase
Learning Objectives
Introduction
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
Glossary
Review Questions
Assignment Questions
Endnotes
The Concept Test
Learning Objectives
Introduction
What Is a Concept Test?
Conducting the Concept Test
Step One: Determine Goal of Concept Test
Concept Diagnostics
Forecasting
Positioning
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
Glossary
Review Questions
Assignment Questions
Appendix
Concept Description Example for Th!nk Electric Vehicle
TH!NK City Specifications:
Purchase Intention Questions
Endnotes
Perceptual Maps
Learning Objectives
Introduction
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
Glossary
Review Questions
Assignment Questions
Endnotes
Estimating Sales Potential
Learning Objectives
Introduction
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
Glossary
Review Questions
Assignment Questions
Appendices
Appendix A
Additional Forecasting References
Sources for Estimates of Bass Model p and q
Appendix B
Endnotes
The Proactive New Product Development Process
Learning Objectives
Introduction
Design
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
Methods
Role of Marketing in Design
Chapter Summary
Glossary
Review Questions
Assignments
Appendix
Additional References for Design Thinking
Critiques
Endnotes
Product/Market Testing
Learning Objectives
Introduction
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
Auctions
Testing Distribution Options
Summary of Marketing Components Testing
Premarket Testing
Pseudosale
Simulated Test Market (STM)
Speculative Sale
Trial/Repeat Measurement
Home Delivery Measures
Laboratory Measurement
Controlled Sales
Informal Selling
Direct Marketing
Minimarkets
Scanner Market Testing
Summary of Premarket Testing
Market Testing
Test Markets
Rollouts
Geographical Segmentation
Industry Segmentation
Channel Segmentation
Market Testing for Durable Consumer Goods and Industrial Products/Services
Information Acceleration
Summary of Market Testing
Chapter Summary
Glossary
Review Questions
Assignment Questions
Endnotes
Into the Market: Launch
Learning Objectives
Introduction
Prelaunch Strategizing and Tactics
Strategic Launch
Product Concerns
Business Strategy
Market Segments
Product/Service Design
Launch Timing
Production
Organizational Concerns
Company Structure
Culture
Speed to Market
NPD Team Structure
Market Orientation
Industry Concerns
Technical Environment
Competitors
Partners/Suppliers
Customers
Logistics
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
Price
Skimming
Penetration
Freemium
Pricing for New-to-the-World Products
Launch Timing
Launch Management
Monitoring Launch
Postlaunch Analysis
Product Life Cycle Management
Product Failure
Chapter Summary
Glossary
Review Questions
Assignment Questions
Appendix
Pricing Resources
Endnotes
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
Bottom-of-the-Pyramid
Launching Global New Products
Global New Product Launches
Global Brands
Branding Strategies
Standardization or Adaptation
Packaging
Consumer Perceptions of Global Brands
Protecting Your Global Brand
Chapter Summary
Glossary
Review Questions
Assignment
Endnotes
Sustainability in Innovation; Marius Claudy and Rosanna Garcia
Learning Objectives
Introduction
Finite Resources
Stakeholder Pressure and Growing Transparency
The Business Case for Sustainability
Costs Reduction
Complying with Regulation
Reputation and Brand Value
Differentiation
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
Glossary
Review Questions
Assignment Questions:
Appendices
Online Video Presentations
H P Bulmers Ltd. Case Study
Endnotes
Index
Biography
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
