Chapter 20 introducing new market offerings reyes

TOP 10 Learning Questions forChapter 20: Introducing New

Market Offerings

Rosalia R. ReyesSeptember 23, 2010

Marketing Management Class Prof. Remigio Joseph De Ungria

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1. The following are categories of new-product except _____________.

a) New-to-the-worldb) New product linesc) Additionsd) Improvementse) Technology-drivenf) Repositioningsg) Cost reductions

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Categories of new-product

New-to-the-world

New product lines

Additions

Improvements

Repositionings

Cost reductions

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Range from new-to-the-world products that

create an entirely new market at one end.

Minor improvements. Revisions of existing products. Brand extension of existing products. Continuous innovation.

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New Product Categories.

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1. The following are categories of new-product except __________.

a) New-to-the-worldb) New-product linec) Additionsd) Improvementse) Technology-drivenf) Repositioningsg) Cost reductions



2. The new-product development start with the search for __________.

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a) Needb) Wantc) Idead) Improvemente) Addition



“IDEA” GENERATION


The new-product development process starts with the search for ideas .

Greatest opportunities and highest leverage with the new products are found by uncovering the best

possible set of unmet customers needs or technological innovation.


7 WAYS TO DRAW IDEAS FROM CUSTOMERS

Observe how your customers are using your product

Ask your customers about their problems with your product.

Ask your customers about their dream product.

Use a customer advisory board to comment on your company’s ideas.

Use Web site for new ideas.

Form a brand community of enthusiast who discuss your product.

Encourage or challenge your customers to change or improve your product.



2. The new-product development start with the search for _________.

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a) Needb) Wantc) Idead) Improvemente) Addition



3. One of the following is not a stage in new- product development process?

a) Idea generationb) Idea screeningc) Concept development and testingd) Marketing strategy developmente) Business analysisf) Adoption processg) Product developmenth) Market testingi) Commercialization



New Product Development Decision Process

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Commercialization

Business AnalysisProduct

Development Marketing Testing

Idea GenerationIdea Screening

Concept Development and Testing


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Idea Generation – is the idea worth considering?Idea Screening – is the product idea compatible

with company objectives, strategies, and resources?

Concept development and testing – can we find a good concept consumers say they would try?

Marketing strategy development – can we find a cost-effective, affordable marketing strategy?

Business analysis – will this product meet our profit goal?

Product development – have we got a technically and commercially sound product?

Market testing – have product sales meet expectations?

Commercialization – are product sales meeting expectations?

New-Product Development Process!



3. One of the following is not a stage in new –product development stage?

a) Idea generationb) Idea screeningc) Concept development and testingd) Marketing strategy developmente) Business analysisf) Adoption processg) Product developmenth) Market testingi) Commercialization



4. _______ is individual’s decision to become a regular user of a product?

a) Awarenessb) Interestc) Evaluationd) Triale) Adoption



The Consumer-Adoption Process

Adoption – is an individual’s decision to become a regular user of a product.

The consumer-adoption process is followed

by the consumer-loyalty process. After which, the adopters of new

products move trough the 5 stages in adoption process.

An innovation is any good, service, or idea that someone perceives as new, no matter

how long its history.15



Stages in the Consumer-Adoption Process

Awareness Interest Evaluation

Trial Adoption



Readiness to try new-products Innovators Early adopters Early majority Late majority LaggardsPersonal influence Characteristics of the Innovation Relative Advantage Compatibility Complexity Divisibility Communicability

Factors Influencing the Adoption Process



4. _______ is individual’s decision to become a regular user of a product?

a) Awarenessb) Interestc) Evaluationd) Triale) Adoption



5. In commercialization of a new product, the firm time its entry to coincide with the competitor is called ____________ ?

a) First Entryb) Parallel Entryc) Late Entry



First Entry

Parallel Entry

Late Entry

Timing Entry

The first firm entering a market usually enjoy the“first movers advantages”. The firm might time itsentry to coincide with thecompetitor’s entry.

The firm might delay its launch until after the competitor has entered.



Decisions for Commercialization

Of New-Product

WHEN (Timing)WHERE (Geographic Strategy)TO WHOM (Target-Market Prospects)HOW (Introductory Market Strategy



5. In commercialization of a new product, the firm time its entry to coincide with the competitor entry is called _______?

a) First Entryb) Parallel Entryc) Late Entry



6. The following are true about decisions to be made in market testing except _________:

a. Decide on how many cities to test?b. Decide on which cities to test?c. Decide on length of test? d. Decide on what information to collect?e. Decide on whom to test?

f. Decide on what action to take?



Decisions to be made in Market Testing

How many test cities?

Which cities?

Length of test?

What information to collect?

What action to take?




How many – most tests use two to six cities.

Which cities – develop a selection criteria.

Length of test - tests last anywhere from a

few months to a year.What information to collect – buyer

surveys will yield in-depth information about consumer attitudes, usage, and satisfaction.What action to take – the firm should

decide if to launch, redesign, or drop the product.



6. The following are true about decisions to be made in market testing except _________:

a. Decide on how many cities to test?b. Decide on which cities to test?c. Decide on length of test? d. Decide on what information to collect?e. Decide on whom to test?

f. Decide on what action to take?




How many – most tests use two to six cities.

Which cities – develop a selection criteria.

Length of test - tests last anywhere from a

few months to a year.What information to collect – buyer

surveys will yield in-depth information about consumer attitudes, usage, and satisfaction.What action to take – the firm should

decide if to launch, redesign, or drop the product.



7. One of the following is not a stage in the consumer adoption process ?

a. Awarenessb. Interestc. Evaluationd. Triale. Testing

f. Adoption



Adoption Process Stages

Awareness Interest

Evaluation Trial

Adoption



Awareness – aware of the innovation but lack information,

Interest – stimulated to seek information about innovation,

Evaluation - considers whether to try the innovation, Trial – tries the innovation, Adoption – decides to make full and

regular use of the information,

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Consumer-adoption process – mental steps through which

an individual passes from first hearing about an innovation

final adoption.



a. Awarenessb. Interestc. Evaluationd. Triale. Testing

f. Adoption

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7. One of the following is not a stage in the consumer adoption process ?



8. Which of the following is true about concept development?

a. A product idea is a possible product the company might offer to the market.b. Product concept is an elaborate version of the idea expressed in consumer terms.c. Each concept represents a category concept that defines the product’s competition.d. The product concept becomes a brand concept.e. Concept testing means representing the product concept, symbolically or physically, to target consumers and getting their reactions.

f. All of the above



What’s on the CONCEPT TESTING?

Product Idea – possible product that can be offer to the market,

Product Concept– elaborated version of the idea expressed in consumer terms,

Each concept represents a category conceptCategory Concept - defines the product’s

competition, Product Concept– becomes a brand

concept,Concept testing – means presenting the

product concept. leareyes.blogspot.com


CONCEPT DEVELOPMENT AND TESTING

Bacon and eggs

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Cold Cereal

Instant Breakfat

Pancakes Hot

cereal

Expensive

Inexpensive

Quick Slow

PRODUCT-POSITIONING MAP

BREAKFAST MARKET



What’s on the CONCEPT TESTING? Consumers should respond to the ff:

Communicability and believability – are the benefits clear to you and believable?

Need level – do you see this product filling a need for you?

Gap level – do other products currently meet this need and satisfy you?

Perceived value – is the price reasonable in relationship to value?

Purchase intention – would you buy the product? User targets, purchase occasions, purchasing frequency – who would use the product,when and how often?



8. Which of the following is true about concept development?

a. A product idea is a possible product the company might offer to marketb. Product concept is an elaborated version of the idea expressed in consumer terms.c. Each concept represents a category concept that defines the product’s competition.d. The product concept becomes a brand concept.

e. Concept testing means representing the product concept, symbolically or physically to target consumers and getting their reactions.

f. All of the above36



9. Which is not a cause of new-product failure?

a. Market/marketing failureb. Financial failurec. Timing failured. Market size failuree. Technical failure

f. Organizational failure g. Environmental failure



Causes of New-Product Failure

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Market/Marketing failure

Financial failure

Timing failure

Technical failure

Organizational failure

Environmental failure



KEYS TO NEW-PRODUCT FAILURE

Market/marketing failure – small size of the potential market or no clear product differentiation.

Financial failure – low return on investment. Timing failure – late in the market or “too” early. Technical failure – product did not work bad design. Organizational failure – poor fit with the organizational

culture lack of organizational support Environmental failure – government regulations macroeconomic factors



9. Which is not a cause of new-product failure?

a. Market/marketing failureb. Financial failurec. Timing failured. Market size failuree. Technical failure

f. Organizational failure g. Environmental failure



10. Which statement is not true in Marketing Strategy Development?

a. Marketing strategy is a three-part plan for introducing new-product in the market.b. Marketing strategy does not consider the target market’s size, structure, and behavior.c. Marketing strategy describes the long-run

sales and profit goals.d. Marketing strategy should outline the planned price, distribution strategy, and marketing budget for the first year.e. None of the above 41



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Describes the target market’s size, structure, and

behavior.

Outlines the planned price, distribution strategy, and marketing budget for the

first year.

Describes the long-run sales and profits goals and

marketing-mix strategy over time.

THREE-PART PLAN MARKETING STRATEGY DEVELOPMENT

First Part

Second Part

Third Part


MARKETING STRATEGY DEVELOPMENT!

Marketing Strategy is a three-part plan for introducing new-product in the market.

1. After the company has segmented the market, chosen its target customers and identified their needs, next is to determine

its desired marketing position.2. After the concept test, comes the introduction of the new product into the market with the 3 part marketing plan.



a. Marketing strategy is a three-part plan for introducing new-product in the market.b. Marketing strategy does not consider the target market’s size, structure, and behavior.c. Marketing strategy describes the long-run

sales and profit goals.d. Marketing strategy should outline the planned price, distribution strategy, and marketing budget for the first year.e. None of the above

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10. Which statement is not true in Marketing Strategy Development?


TOP 10 Learning Questions forChapter 20: Introducing New

Market OfferingsRosalia R. Reyes

September 23, 2010

Marketing Management Class Prof. Remigio Joseph De Ungria

Education

Chapter 20 introducing new market offerings reyes