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NEW MARKET OFFERINGS

SANA ZAHID
NAVEEN ZUBERI
EXECUTIVE SUMMARY
In the present era of fast changing market dynamics in
marketing, where everyone is trying its level best to
capture either the existing market or creating new markets
through their innovative products.
Due to technological revolution the world has practically
turned into Global village. Multinationals have been able to
develop products according to local needs. Due to credible
market research and customer needs they have been able
to create new markets. Within existing markets due to new
innovative approach they have increased the market base
and also maintained their leadership position.
Local industry has also been able to penetrate better to get
share from multinationals with quality products reinforced
with better strategies and cost effectiveness.
CHALLENGES IN NEW PRODUCTS
DEVELOPMENT
 New products failure
2. Poor marketing Plan
3. Marketing plan implementation
CLASSIC EXAMPLES OF NEW
MARKET OFFERINGS
 VIDEO / AUDIO IPODS
 CELLULAR TELEPHONES
 I MATS
 ATM CARDS FROM FOREIGN BANKS
 SKIN / HAIR CARE PRODUCTS
 MULTI FUNCTIONALS COMPUTERS /
PRINTERS
HINDERANCE FACTORS IN NEW
PRODUCTS DEVELOPMENT
 Shortage of ideas in FMCG
 Higher R & D cost
 Shorter product life cycle
ORGANIZATIONAL
ARRANGEMENTS
 Budgeting for new products development
 Organizing new products development
NEW PRODUCT
DEVELOPMENT
DECISION PROCESS
Idea generation
 Called concept generation or ideation
 Ideas obtained from customers by
employing user innovation
 Ideas obtained from R&D etc
 Major 2 sources of new product ideas
Idea screening
 Second step and first decision to spend
resources
 Example
 Two types of errors must be avoided; go
and drop
 Three questions considered by the screeners
Concept development and
Testing
Concept development:
 Develop marketing and engineering details
 Example
Concept testing:
 Concept statement presented to consumers for their
reactions
 Example
 Concept should be communicated in the form of verbal
description, sketch, photograph, physical appearance,
prototype etc.
 Customers are asked questions so as to check whether the
concept has strong appeal
Marketing strategy
development
 Designing a marketing strategy for new product
based on product concept
This stage considers three parts:
 First-target market size, sales and profit goals for
first few years
 Second-planned price, distribution strategy for
first year
 Third-long run sales and marketing mix strategy
Business Analysis
A review of sales, profits and cost projections
of the new product
 Estimating total sales
 Estimating costs and profits
Product Development
 Developing the product concept into
physical product
 R&D designs a prototype, that can be
produced quickly at budgeted cost
 Example of a mouthwash
 After prototype-alpha and beta testing
Market testing
 The product and marketing program tested
in a more realistic market settings
 Product is ready to be dressed up with a
brand name and packaging and put into
market testing
 Three major methods-standard, controlled
and simulated test markets
Commercialization
 Introducing a new product into market
 Company faces high costs, may also have to
spent on advertising and sales promotion
 Three things taken into consideration:

-when
-where
-to whom
Consumer Adoption Process

Focuses on mental process of an organization

 Awareness: The consumer becomes aware of the


innovation but lacks information about it.
 Interest: The consumer is stimulated to seek information
about the innovation.
 Evaluation: The consumer considers whether to try the
innovation
 Trial: The consumer tries the innovation to improve his
or her estimate of its value.
 Adoption: The consumer decides to make full and
regular use of innovation.
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