Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

BMAR311 - Chapter 9

SU6 - New Products
by

Re-an Muller

on 22 February 2016

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of BMAR311 - Chapter 9

New Products
Study Unit 6 (Ch 9)
R. Müller
"Slightly" new?
Really new?
A
B
Asking (or listening to) dissatisfied customers
Asking non-representative customers
Using open-ended, qualitative (vs. structured survey) procedures
Involving customers as co-developers
Listening to scientists and newcomers
Scanning the literature for interesting possibilities
GETTING IDEAS FOR REALLY NEW PRODUCTS
Relative advantage
EVALUATING REALLY NEW PRODUCTS
Differentiate between “
slightly new
” and
really new
products
STUDY OUTCOMES:
STUDY OUTCOME 3:
Explain the value of line extensions, including adding or dropping a product variant
To attract new consumers

Slightly new products
STUDY OUTCOME 1:
Differentiate between “slightly new” and really new products
STUDY OUTCOME 7:
Discuss idea generating, evaluating, adoption and expansion of really new products
Create or expand a new category
Are new to customers for whom substantial learning is often required
Raise broad issues such as the appropriate channels of distribution and business responsibility
Create (sometimes) a need for infrastructure, software, and add-on's
REALLY NEW PRODUCTS are different because:
DECISIONS FOR A MARKET TEST:
STUDY OUTCOME 5:
Differentiate between the most common tests used for testing slightly new products
Customer analysis
Proactive Idea Generation
STUDY OUTCOME 4:
Outline sources for new product ideas
STUDY OUTCOME 6:
Comprehend the
value of brand extensions
Brand extensions affect the original brand
BUILD: Brand loyalty and Brand equity
Line extensions – use existing brand
STUDY OUTCOME 3:
Explain the value of line extensions, including adding or dropping a product variant
Loyal customers
Continuous quality improvement
STUDY OUTCOME 2:
Describe product modifications
Discuss
idea generating
,
evaluating
,
adoption
and
expansion
, and
forecasting really new products
Comprehend the value of
brand extensions
Differentiate between the most common tests used for
testing slightly new products
Outline sources for
new product ideas
Explain the value of
line extensions
, including adding or dropping a
product variant
Describe
product modifications
BMAR 311
Product decisions
SU5
Developing
a product
strategy
(Brand image)
SU6
New
Products
SU7
Pricing
Decisions
Really new products
3types of product modifications
Clearly better (upgrade)
Different (ingredients change)
Inferior (The substitution of a expensive ingredient)
Updated styling
Redesign
Current noncustomers
Occasional customers
Try
Try
Try
Not try
Not try
a) Prefer - Sales increase
b) Like - Neutral
c) Not Like - Loss
a) Prefer - Sales increase
b) Like - Trial sales gain
c) Not Like - Loss
a) Prefer - Sales increase
b) Like - Trial sales gain
c) Not Like - Trial sales gain
Loss
Not try
Loss
Neutral
Impact of product redesign on customers
Effectiveness of operational tasks increases - fewer lines
The overuse of a brand can weaken the brand and brand equity
Increase sales
Allow price discrimination between customers with different needs and preferences
Reasons not to do line extensions:
More product lines - are attractive:
Product
1 variant
Product
Multiple variants
Goldilocks principle = not too few, not too many, but just the right number
Why would a business "drop" a product variant?
Consumer and cost data must be evaluated to determine the effect of a new product variation (Consumers can get confused - quality)
Why would a business add a new product variant?
What effect / implications will this have?
Colour, Engine size, extras
Slow sales, Low profit
What effect / implications will this have?
Current customers reaction
Negative impact on brand image
Production / Cost implications
Customers
Reactive Idea Sources
STUDY OUTCOME 4:
Outline sources for new product ideas
Brainstorming
Category analysis
Active search
Competitor analysis
(Textbook page: 263)
(Groups of 2 - 3)
Entrepreneurs
Design
Internal and External R&D
Operations people
Distribution channels
Suppliers
Employees
Market tests
Test the actual product
Product tests
Discrimination and preference testing
Concept testing
Product testing
"Slightly" new?
Really new?
A
B
"Slightly" new?
Really new?
A
B
Samsung Galaxy S6 Edge
"Slightly" new?
Really new?
A
B
Shwood sunglasses
New colour
Added ingredient
Upgrade
Rare
Real innovation
Creating new product categories
2 Issues:
Technical competence sharing or transfer
Brand
Image match
How would you go about testing this device?
Why?
Initial tests (Employees)
Limited time-horizon forced trial (heavy, medium, light & none users)
Placement of the product for extensive periods.
Can they tell the difference?
Do they prefer the new product?
Are they for the change or against it?
Information gathering (Sales, awareness, attitude etc.)
Cost (Advertising = 70% ; 30% info gathering, admin)
How long (Usually several months)
What to do (TV Ad? / Newspaper? / Sales Team)
Where to test markets (Usually 2 - 3 cities)
Action standards

(When is it a success?)
Successful brand extensions depends on the value of the brand
GYM
Trial-ability /divisibility
Observability /communicability
Complexity
Risk
Compatibility
(Usability for consumers)
(is it better)
(Financial risk for business)
(Development / production)
(Clear benefits?)
(Chances of consumers trying it?)
Semester Test
SU 3 (Ch 3+5), SU4 (Ch4)
SU 5 (Ch 8) + SU 6 (Ch 9)
22 April 2013
10h00 - 11h30
Building 12 G04
50 Marks
Section A (13 Marks)
Section B (17 Marks)
Section C (20 Marks)
Lazy hands make for poverty,
but diligent hands bring wealth.
Proverbs 10:4 (NIV)
BMW X4
Test the "idea"
Surveys
Focus groups
Demonstrations
Figure 9.3 (p. 260)
Main purposes of concept testing:
• Choose most promising set of alternatives
• Get notion of commercial prospects of concept
• Who is most interested in concept?
• Indicate direction of further development

Page 264
Full transcript