Little Remedies
How does an extensive product line benefit
both consumers and retailers?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-7
FIGURE 10-1 Classification of consumer
goods
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-10
Raymond Weil Watch
What type of consumer good?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-11
CLASSIFYING CONSUMER AND
BUSINESS GOODS
• Classification of Business Goods
 Production Goods
 Support Goods
• Installations
• Accessory Equipment
• Supplies
• Industrial Services
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-12
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
• What is a New Product?
 Newness Compared with Existing Products
 Newness in Legal Terms (Regular Distribution?)
• Regular Distribution
 Newness from the Company’s Perspective
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-16
Sony’s PlayStation 2 and Microsoft’s Xbox
How does the term “new” apply?
PS2
Xbox
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-17
MARKETING NEWSNET
Blindsided in the Twenty-First Century—
The Convergence of Digital Devices
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-18
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
• What is a New Product?
 Newness from the Consumer’s Perspective
• Continuous Innovation
• Dynamically Continuous Innovation
• Discontinuous Innovation
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-19
FIGURE 10-2 Consumption effects define
newness
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-20
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
• Why Products Succeed or Fail
 Marketing Reasons for New-Product Failures
• Insignificant Point of Difference
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-21
FIGURE 10-B What it takes to launch one
commercially successful new product
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-22
MARKETING NEWSNET
What Separates New-Product
Winners and Losers
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-23
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
• Why Products Succeed or Fail
 Marketing Reasons for New-Product Failures
• Incomplete Market and Product Definition
Before Product Development Starts
 Protocol
• Too Little Market Attractiveness
• Poor Execution of the Marketing Mix:
Name, Price, Promotion, and Distribution
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-25
NEW PRODUCTS AND WHY THEY
SUCCEED OR FAIL
• Why Products Succeed or Fail
 Marketing Reasons for New-Product Failures
• Poor Product Quality or Insensitivity to
Customer Needs on Critical Factors
• Bad Timing
• No Economic Access to Buyers
 A Look at Some Failures
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-26
Thirsty Dog! and Thirsty Cat!
Why did these products fail?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-27
MARKETING NEWSNET
When Less is More—
How Reducing the Number of Features
Can Open Up Huge Markets
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-28
FIGURE 10-3 Why did these new products
fail?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-29
FIGURE 10-4 Stages in the new-product
process
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-33
FIGURE 10-C Strategic roles of most
successful new products
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-34
Volvo’s YCC
How are new-product ideas generated?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-36
3M Post-it Flag Highlighter
How are new-product ideas screened & evaluated?
+
3M Post-it Notes
=
Felt Tip Highlighters
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
3M Post-it
Flag Highlighters
Slide 10-39
Frito-Lay Natural Snacks
How are new-product ideas screened & evaluated?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-40
Mattel’s Barbie
Why should laboratory and safety tests be done?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-45
ETHICS AND SOCIAL
RESPONSIBILITY ALERT
SUVs and Pickups versus Cars—
Godzilla Meets a Chimp?
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-46
FIGURE 10-5 Six important U.S. test
markets and the “demographics winner”:
Wichita Falls, Texas, metropolitan statistical
area
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-48
FIGURE 10-6 Marketing information and
methods used in the new-product process
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-50
3M New-Product Idea
Ultrathon Insect Repellent
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-62
FIGURE 10-D Five alternative structures for
product development projects
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-64
FIGURE 10-E Overall performance of five
structures for product development projects
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-65
FIGURE 10-F A weighted point system
Medtronic uses to spot a winning new
medical product (part 1)
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-67
FIGURE 10-G A weighted point system
Medtronic uses to spot a winning new
medical product (part 2)
© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Slide 10-68