Group Members

Sikandar Nasser (12-SE-29)

Noman Zakir (12-SE-09)

Muhammad Ahsan (12-SE-53)

Topic of Discussion

Marketing’s Role in the

New Product Process

Review the above list of tasks. Which ones would you expect marketing to be involved in? (Use the scale of: very likely, somewhat likely, unlikely.)

Question 1

Marketing Role in new Product Process

Part of successfully launching a new product is finding the

people who need the product, educating them on its value and

helping them purchase it. Marketing is vital to getting your

product in people’s hands.

Product Development Strategy

Marketing involves very likely in Product development strategy.

The Product development strategy involves the following steps. Idea Generation Idea Screening Concept Development and Testing Marketing Strategy Development Business Analysis Product Development Test Marketing Commercialization

Test Marketing

StandardTest Market

Full marketing campaignin a small number of representative cities.

StandardTest Market

Full marketing campaignin a small number of representative cities.

SimulatedTest Market

Test in a simulated shopping environment

to a sample of consumers.

SimulatedTest Market

Test in a simulated shopping environment

to a sample of consumers.

Controlled Test Market

A few stores that have agreed to carry newproducts for a fee.

Controlled Test Market

A few stores that have agreed to carry newproducts for a fee.

Commercialization

Commercialization involves implementing a total marketing plan

and full production

Launch the product

Produce and place advertisements and other promotions

Fill the distribution pipeline with product

Critical path analysis is most useful at this stage

Identifying which broad types of new products might best fit with the

firm’s strategic direction.

Very likely involves Marketing as company can advertise about broad

types of new product and identifying the opinion of the customers about

the various broad types of the new product and this create the

relationship between customer.

Identifying broad types of new products

Coming up with specific new product ideas

New ideas means you are gaining information so Marketing information System (MIS) can be used.

For new product ideas company have to make relationship between customers and marketing frequently involves enduring relationship between customers, sellers and other parties.

In getting new ideas you involves customers in new ways or you come to know about unarticulated view of customers.

Helping design the product

Some what likely involves the marketing in the product design.

Kaul and Rao (1995) provided an integrative review of product positioning and design models in the marketing literature.

In Packaging and labeling. Product packaging must be appealing in order to attract and hold the consumers’ eye and attention, and serve as an efficient and functional shipping container.

Determining whether there is a consumer need for the product

Possibly the most important aspect of market research is to determine if there is a need for your product in your chosen market.  Opportunities to extend a product lifecycle, exporting unused inventory or even producing out-of-date technology may exist in new underdeveloped markets.  

Key indicators to look at when determining a need for your product are: 

Income levels

Size and growth of the middle class

Access to technology, and 

Infrastructure

Conducting market research to determine whether consumers will buy

The important thing is to ensure it gives you reliable information that you can use in creating your Product. Market analysis provides information about the market potential that provides the basis for accurate sales forecasting and your marketing strategy. Its basic components include:

An estimate of the size or the market for the product/service

Projected market share

Information about your market and

Analysis of the competition

Analyzing competitor’s current and potential products

Competitor analysis is an evaluation of the strengths and weaknesses of

current and potential competitors. So in new product development it

necessarily be involved to know:

Which companies involved in the production of these products/services

With which competitors to compete

Knowing the planned actions of competitors

Helping to develop the financial evaluation

Marketing involves to somewhat likely to access viability of new product.

Generally Market research involves to get information and to:

Estimate your product price

Product’s market Potential

Break-even Analysis

Forecast sales volume

Presenting to management on whether to develop the product

Unlikely marketing involves because you will

present to management after market research,

analysis and you will told about the consequences

of the product being developed.

Running the actual project team

For project (new product development) every member in the team should

have relevant information. In running the team the marketing is some what

likely involves. This can comes under the internal marketing i.e. running of

internal customers (staff) for gaining competitive advantage.

Undertaking test marketing programs before the launch

Yes Marketing involves very likely.

There are three types of test marketing

Standard Test Marketing

Controlled Test Marketing

Simulated Test Marketing

Developing the ads, sales promotions, and various launch events

This is marketing communication strategy and marketing involves

very likely. Deciding on a marketing communications strategy is one

of the primary roles of the marketing manager and this process

involves some key decisions about who the customer is, how to

contact them, and what the message should be.

Organizing staff training, staff bonuses, and ongoing staff communication

Somewhat likely involves marketing. This comes under internal

marketing. With an internal marketing strategy, employees are treated as

“internal customers” who must be convinced of a company's vision and

worth just as aggressively as “external customers.” The goal of internal

marketing is to align every aspect of a company’s internal operations to

ensure they are as capable as possible of providing value to customers. If

a company can operate in a coordinated and standardized way, that

company can provide a more consistent experience to their customers

Monitoring the success of the product’s launch

Some what likely involves marketing. It is very important to monitor not

just the sales of the product, but also to check how the product is

performing in distribution. So there is a need for qualitative research on

the product, production, distribution and marketing as well as the

technical research on product quality and the quantitative research on the

efficiency of the launch

Organizing a celebration party for all staff involve in the final success of the new

product

The celebration party for all staff is an event and comes under

event management so marketing not involves. However for the

advertisement of an event marketing can involve.

From your evaluation in Q1, what is the earliest stage of the new product process that you would expect to see marketing involved?

Question 2

What is new Product?

• A Product that opens an entirely new market

• A product that adopts or replaces an existing product

• A Product that broadens the market for an existing product

• An old product introduced in a new market

• An old product packaged in a different way

• An old product marketed in a different way

New Product Development

The New Product Development process is often referred to

as The Stage-Gate innovation process, developed by Dr.

Robert G. Cooper as a result of comprehensive research on

reasons why products succeed and why they fail.

New Product development is a process which is designed to

develop, test and consider the viability of products which are

new to the market in order to ensure the Growth or survival

of the organization.

New Product Development

Stages in New Product Development

New Product Development

Firms wishing to improve the efficiency of their NPD processes will tackle specific marketing goals in each of the new product development stages.  In this paper, we’ll focus on market research during the Fuzzy Front End (FFE).

Opportunity Identification

When an organization is in the early stages of investigating new market

opportunities, a catalog of success factors should be evaluated.  These

factors will focus on potential market demand, customer needs, and

market saturation.  The NPD team should ask the following

questions (5). 

What is the demand in this area?

What is the perceived degree of need by potential consumers?

Will our product offering be unique relative to our competitors?

Do we have an existing distribution channel for this opportunity?

Idea Generation

In the concept generation stage of NPD, an organization should

solidify their understanding of customer needs and begin

formulating conceptual product designs.  Divergent

brainstorming is a common technique used to generate many,

many ideas that can address the opportunities identified in

Stage 1.

Idea Generation cont.…

Customer site visits are an effective way to gauge and test new product

concepts. 

One recommendation is to use a dyad team, consisting of one person

from R&D and one person from marketing.  The dyad team can call on

prospective customers and end-users to learn about their problems and

gain direct input on product needs.

dyad teams can quickly add to the growing list of ideas in the

brainstorming session.

An emerging trend is to use customers for co‑creation in new

product development.  Co‑creation is a collaborative activity for

NPD in which consumers actively contribute to the early stages of

idea generation and selection for the new product offering

In particular, ideas born of consumers through co‑creation will most

closely mirror the end-users’ actual product needs.

Idea Generation cont.…

After a large number of ideas have been captured, either

through in-house brainstorming or using consumers for

co‑creation, innovation teams will narrow down the

number of potential solutions through convergent

thinking methodologies.  Similar ideas are grouped

together

Idea Generation cont.…

Concept Evaluation

During concept evaluation, the NPD team wants to generate

customer feedback on the potential lead solution they have

identified to help address the end-users’ problems.

Depending on the industry, between one and a half dozen concepts

may be tested through customer focus groups or product concept

tests.

The goal of these Stage 3 activities is to eliminate poor concepts.

What risks could there be for firms that tend to operate their new product process with limited marketing function involvement?

Question 3

Risk

a situation involving exposure to danger.

Customer investment on new product

low-involvement decisions risk.

 high-involvement decisions risk.

Risk with limited Marketing

The process

 through which

 goods and services move from concept to the customer.

Conti….

1. Financial risk

If you have limited

marketing, there is the

financial risk if your

new product doesn't

generate sufficient

demand at a price that is

profitable.

Conti….

If you have limited

Marketing,

potential

customers may

choose the

competition over

you.

2. Missing out on Potential Customers risk

Conti….

If you have limited

Marketing, It’s

easy for another

company to stake

out accounts for

your identities.

3. Letting Your Competitors Take Advantage risk

Conti….

If you have limited

Marketing, you

are losing a

competitive edge

which is basic of

business.

4. Losing a Competitive Edge risk

Conti….

If you have limited

Marketing, you will

not be able to build

customer

relationships through

this channel.

5. Becoming Obsolete risk

Conti….

If you have limited

Marketing, you

have risk ruining

your reputation as

a customer-

friendly business.

6. Ruining Your Reputation risk

Conti….

If you have limited

Marketing, you

will grow much

more slowly

starting from a

small.

7. Missing Out on Growth Opportunities risk