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Lecture Marketing management: Chapter 20 - Phillip Kotler, Kevin Lane Keller

Chapter 20 - Introducing new market offerings. After studying this chapter you will be able to understand: What challenges does a company face in developing new products and services? What organizational structures and processes do managers use to oversee new-product development? What are the main stages in developing new products and services? What is the best way to manage the new-product development process? | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Chapter 20 Introducing New Market Offerings Discussion Questions What challenges does a company face in developing new products and services? What organizational structures and processes do managers use to oversee new-product development? What are the main stages in developing new products and services? What is the best way to manage the new-product development process? What factors affect the rate of diffusion and consumer adoption of newly launched products and services? New Product Options Make or Buy Types of New Products New Improved Formula New-product development shapes the company’s future. Improved or replacement products and services can maintain or build sales; new-to-the-world products and services can transform industries and companies and change lives. But the low success rate of new products and services points to the many challenges they face. Make or Buy A company can add new products through acquisition or | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Chapter 20 Introducing New Market Offerings Discussion Questions What challenges does a company face in developing new products and services? What organizational structures and processes do managers use to oversee new-product development? What are the main stages in developing new products and services? What is the best way to manage the new-product development process? What factors affect the rate of diffusion and consumer adoption of newly launched products and services? New Product Options Make or Buy Types of New Products New Improved Formula New-product development shapes the company’s future. Improved or replacement products and services can maintain or build sales; new-to-the-world products and services can transform industries and companies and change lives. But the low success rate of new products and services points to the many challenges they face. Make or Buy A company can add new products through acquisition or development. When acquiring, the company can buy other companies, patents from other companies, or a license or franchise from another company. Swiss food giant Nestlé has increased its presence in North America by acquiring such diverse brands as Carnation, Hills Brothers, Stouffer’s, Ralston Purina, Dreyer’s Ice Cream, Chef America, Jenny Craig, and Gerber. For product development, the company can create new products in its own laboratories, or it can contract with independent researchers or new-product development firms to develop specific new products or provide new technology. New products range from new-to-the-world products that create an entirely new market to minor improvements or revisions of existing products. Most new-product activity is devoted to improving existing products. Some of the most successful recent new consumer products have been brand extensions: Tide Total Care, Gillette Venus Embrace, Bounce Extra Soft, Always Infinity, and Secret Flawless deodorant. At .