Introduction to New Products/Services: MKTG-465
Kellogg School of Management
MKTG-465
Thomas Kuczmarski
Winter 2007
Office Hours: By Appointment (at business office or before class downtown)
Professor
Thomas D. Kuczmarski
Kuczmarski & Associates, Inc.
2001 N Halsted St, Suite 201, Chicago, IL 60614
T: (312) 988-1510
F: (312) 988-9393
Email: tkuczmarski@kuczmarski.com
Teaching Assistant
Rishu Mandolia
Kuczmarski & Associates, Inc.
2001 N Halsted St, Suite 201, Chicago, IL 60614
T: (312) 988-1547
F: (312) 988-9393
Email: rmandolia@kuczmarski.com
Required Book:
Managing New Products (3rd ed.), T. Kuczmarski
Additional readings to be handed out in class
Recommended (but not required) Book:
Innovation (1st ed.), T. Kuczmarski
CLASS SCHEDULE
Class
Week 1
1/5/07
Friday
Week 2
1/8/07
Monday
Week 3
1/19/07
Friday
Topics
Guest Speakers and
Exercises

Igniting Innovation
 Creating an Innovation
Mindset and Culture
 Best Practices in New
Product Development
 The Power of Cross
Functional Teams
Creating a New Product Strategy
and Diagnostic Audit
 Diagnostic audit components
 New product vision, growth
gap, and strategic roles
 Screening criteria
Activating a New Product and
Service Development Process
 Step-Wise
Product/Service
Development Process
 New Product Metrics and
Portfolio measurements
Assignments


In-Class Vision and
Growth Gap Exercise
Guest Speaker

Form project teams (4-5
persons/team)
Choose industry/category to
focus scope of course-long
project
Begin Assignment #1: Build
New Product/Service
Rationale for chosen
industry/category, initial
research plan and screens
Begin Assignment #2 –
Uncover Consumer Problems,
Generate Ideas and Write
Concepts
Pre-Class Reading and Cases
Text Book Readings: Chapters 1 and
2
Text Book Readings: Chapters 3, 4,
and 5
Additional Articles
Mini-Case: New Product Strategy
Text Book Readings: Chapter 6
Additional Articles
2
Week 4
1/22/07
Monday
Week 5
1/29/07
Monday
Week 6
2/5/07
Monday
Week 7
2/12/07
Monday
Identifying Consumer/Customer
Problems and Needs
 Consumer/Customer
problem identification
techniques
 Selection process of high
need-intensity problems
Guest Speaker
Generating New Ideas and
Solutions and Screening
 Structured problem solving
 Conducting ideation
sessions
 Formatting and
consolidating ideas
 Screening ideas
Shaping and Testing Concepts
with Customers/Consumers
 Concept Writing
 Concept shaping research
techniques
 Concept testing and
screening
Conducting Business Analysis
and employing speed to market
techniques
 New product business
plans
 Revenue forecasting and
cost modeling
 Speed to market
approaches
Guest Speaker
In-Class Concept
Writing Sample
Exercise

ASSIGNMENT #1 DUE –
Industry/Category Pitch,
Preliminary Research Plan
and Screens
Continue Assignment 2:
Execute market research plan
and uncover Problem/
Opportunity Areas
Text Book Readings: Chapter 7
Additional Articles
Mini-Case: Microsoft Case

Continue Assignment 2: Hold
ideation sessions and screen
ideas
Select Articles
Mini-Case: Ideation Materials and
Strategy

Continue Assignment 2: Write
concepts and conduct market
research
Select Articles
Mini-Case: Concept Development

Guest Speaker


ASSIGNMENT #2 DUE:
Consumer Problems, Ideas
and Concepts
Conduct Business Analysis
Text Book Readings: Chapters 8, 9 10
Additional Articles
Mini-Case: Business Case
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Week 8
2/19/07
Monday
Week 9
2/26/07
Monday
Week 10
3/5/07
Monday
Designing Prototypes, Testing,
and Launching
 Prototype design and
development
 Market testing
approaches
Crafting Go -to-Market Strategies
 Positioning
 Branding Strategies
 Pricing Considerations
 Competitive
Differentiation
 Marketing and
Communications
Final Presentations
 Guest Speaker

Continue Business Analysis
Text Book Readings: Chapter 11
Additional Articles
Mini-Case: Prototype Development
Guest Speaker

Develop positioning and go
to market strategy
Select Articles
Panel of Judges

ASSIGNMENT #3 DUE ON
SATURDAY, MARCH 3,
2007 BY 3:00 PM - Final
Presentations and Paper on
New-To-World New Product
or Service (12 Page paper)
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1.
Course Objectives
The primary purpose of this course is to provide an in-depth understanding of new product and service development – including best
practices, new product and service strategy, consumer/customer needs identification, idea generation, concept development, prototype design, goto-market strategy, cross-functional teaming, metrics and culture.
Student teams will create a new-to-the-world product or service and build a business case to support it. Course lectures, discussions and
guest speakers will provide the context for the each step in the process. During the final class, each team’s new product or service business case
will be presented to and judged by a panel of business leaders and the top two teams will be awarded $1,250 each – the Kuczmarski Innovation
Scholarship.
Multiple Industries: This course will highlight new products and services from business-to-business and consumer industries, including actual
experiences from a variety of different businesses and companies.
Real World Approach: Students will learn about and apply tools for effective new product development. The class will take a managerial,
decision-making approach and emphasize learning by doing through practical application of the key principles and frameworks presented. It will
blend first-hand experiences from practicing new product developers along with case studies, textbook and reference material.
Participatory Classes: Students are expected to come prepared to class, participate and add value to class discussions. Classes combine
lectures with a high degree of interaction and discussion. In addition, several outside guest speakers have been invited to attend classes to provide
their perspectives on real-life issues facing companies and management relative to innovation. A highly professional dialogue with the speakers is
required.
2. Instructor Availability
Students are encouraged to contact the instructor at his office or e-mail to discuss any issues or to schedule an in-person or phone
appointment that is mutually convenient.
3. Text and Reference Materials for Assignments
1.
2.
3.
4.
Text: Managing New Products (3rd ed.), T. Kuczmarski
Recommended: Innovation, T. Kuczmarski
Select articles on relevant new product management issues.
Select Mini-Cases with real-world company examples.
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4. Evaluation of Students’ Work
There will be no written examinations in this course. Your performance will be evaluated according to demonstrated knowledge and ability in
applying the concepts of the course to the development of practical and creative solutions.
Three written assignments will be due during the course and will be completed by self-chosen teams of 4-5 people. Assignment #3 will be
completed over the course of the class and will involve multiple check-ins throughout the quarter (including Assignments 1 and 2). Assignments
must be turned in during class on the week due. If you cannot make it to class, please make other arrangements to turn in your assignment prior to
class on the week due.
Grades will be determined as follows:
(1) Assignment #1: Industry/Category Pitch, Preliminary Research Plan and Screens
10% of Grade
(2) Assignment #2: Consumer Problems, Ideas and Concepts
20% of Grade
(3) Assignment #3: Final Presentations and Paper on New-To-World New Product or Service
50% of Grade
(4) Individual Class Participation
20% of Grade
5. Explanation of Written Assignments
Assignment 1: Industry/Category Pitch, Preliminary Research Plan and Screens (3 Pages, due week 4)
The first assignment consists of a 3-page overview of 1) the rationale for your chosen industry or category and 2) your preliminary research plan for
uncovering consumer/customer needs and shaping and testing prototypes and 3) the Vision, Strategic Roles and Screening Criteria to use in the
development of your new offering. The purpose of the assignment is for each team to fully think through their industry decision and research
approach and screening criteria to guide development.
1) Rationale for industry/category – Based on secondary research and/or primary research, develop a rationale for why your chosen area
appears to be ripe for innovation
2) Preliminary Research Plan – Who will you conduct research with? What are the key questions you will ask them?
3) Vision, Strategic Roles and Screening Criteria: What are you trying to achieve strategically and what hurdles must be met?
Each team will have 3 minutes to give their industry/category “pitch” to the class in week 4. This is a time for other teams to provide input and
feedback.
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Assignment 2: Consumer Problems, Ideas, Screening and Concepts (6 Pages, due week 7)
This assignment will be developed iteratively throughout the first 7 weeks of the class. Students should be forewarned that this is not something
that can be completed at the last minute. It is therefore recommended that students stick to the course outline and complete portions of the project
in the weeks when they occur on the syllabus.
Execute the primary research plan created in Assignment 1. Based on primary research conducted:

Identify the primary and most intense consumer/customer problem categories (approx. 5-6 categories total). List the specific customer
problems within each category. Indicate the information sources used that supports your analysis and your selection of the most intense
customer problems. Please do not create new product ideas yet! Focus on customer problems and the underlying reasons that support them.
(1 page)
For the primary and most intense customer problem categories identified, conduct ideation sessions with friends/co-workers/class members, and
apply the concepts from the Week 5 class lecture to:


Develop a list of at least 20-25 ideas, formatted in the complete standard idea format outlined in class (what it is, how it works, primary benefit).
(1 page)
Apply the screening criteria from your Assignment #1 to each idea – list each idea’s “score” on each criteria, assign some type of total rating to
each idea. Rank order the ideas based on your screening criteria. (1 page)
For the top 2 ideas, create a concept statement for each idea.



Develop a concept statement for your top 2 ideas, formatted in standard concept statement format.
Develop a list of questions you will ask potential customers (in qualitative interviews) to help screen and refine the concepts. (1 page)
Attach rough drawings/schematics of what the concepts might look like or how you would show them to a potential customer (don’t worry if you
are not an artist!). If your concepts are services, you may want to consider a drawing that depicts the benefits of the service— that is, what the
customer gets from the service.
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Assignment 3: New Product Case (12 pages, Presentations in Week 10, Paper due on March 3rd Saturday before class at 3pm)
This assignment will be developed throughout the course and will incorporate and build off of work from Assignments 1 and 2.
For this portion of the assignment, each team will choose their highest potential new-to-the-world concept. The New Product Business Case
presents the argument for why your new product idea will ultimately be successful. For your concept, you can chose either to “sell” the idea to a
specific company or create a new one under a new brand – either choice is fine, but the rationale must be fully explained. The new product/service
case should include the following:












Product/Service Rationale and Financial Goals
New Product Vision, Roles and Screening Criteria
Relevancy and Need-Intensity of Customer Problem(s) Addressed
Product Name, Description, Features, Benefits (including concept statement)
Points of differentiation
Market Assessment (e.g. definition, size, growth)
Target Audience(s), Profile and Size
Positioning and Name or Brand
Pricing
Distribution/Sales/Channel Alternatives
Communications and Promotion Objectives/Requirements
Financials (3-year range of revenue, gross profit and operating profit (annual and cumulative)
The final paper should be no more than 12 single-spaced pages. Exhibits can be added to provide new information that is important to the case.
Additional relevant data can be included in an appendix. In particular, you paper should focus on chronicling the process from which your concept
was born. All assumptions and strategic choices should be included. The final paper will be due Saturday at 3pm before the final class.
Evaluation will be based on use of secondary and primary data, thoroughness of analysis, logic of conclusions and recommendations, level of
uniqueness and creativity, impact of concept and application of frameworks presented in class and in the readings.
The financials should be based on realistic market information. Assumptions should be grounded in some facts, trends, and primary data collected
through your research.
While the final paper will be the primary basis for your team grade on Assignment 3, each team will also be graded on their presentations to a panel
of judges in the final class. These judges will choose the top new product/service concept based on the magnitude, significance and potential of the
opportunity. The winning teams will be awarded the Kuczmarski Innovation Scholarship for $1,250 to be divided among team members.
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6. Explanation of Class Participation
This class is designed for professionals who want to learn new product and service development for practical, real-world application. Given this
approach, students should come to class prepared to share insights and perspectives.
Students are expected to be prepared with the assigned readings and cases for each class. Students may be asked to present or defend their
viewpoints on assigned readings and cases, so please be prepared with the material.
The class participation grade is assessed based on content and quality of questions and responses during class discussions. Students are
encouraged to challenge each other’s conclusions and develop alternative points of view. Some of the elements that are emphasized in evaluating
class participation include:






Is the participant a good listener?
Are the points made relevant to the discussion? Are they linked to the comments of others?
Do the comments show evidence of thoughtful analysis, or simply a restatement of facts or other students’ comments?
Is there a willingness to participate and to test new ideas or are all the comments ”safe”?
Do the comments add to our understanding of the situation?
Are the comments clear and concise, or obscure and rambling?
Class attendance obviously affects your participation grade. Students can only use laptops in class to take class notes. Class slides will be
available for each class.
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