to consider product development issues and the infrastructure required to
deliver the product (e.g. distribution, after-sales support, etc.)
Product development and innovation 225HighHigh3 1
Market
developmentExploratory
research
Uncertainty
about market
reaction 4 2
Market
penetrationDevelopmental
activityLow
Low Uncertainty about
product development/delivery
Figure 10.5
Marketing
uncertainty mapThis gives us four possible situations with varying degrees of uncertainty
and helps management convert ideas and concepts into workable solutions.
1 Quadrant 1 Exploratory research: Here there is much uncertainty.
Innovation needs to be nurtured overtime and immediate commercial
gain cannot be expected. Typically, this involves state-of-the-art tech-
nical research and development of new technologies. Risk relates to
two factors: (i) The work may be resource intense and divert resources
away from more commercial activities and (ii) No actual exploitable
benefits may be generated. While activities in this area may require to
be shielded from commercial pressure, this cannot be done indef-
initely. Such activities require to be evaluated and either further
developed or dropped. This requires a clear focus in terms of likely
commercial outcomes and overall strategic goals. Given the right man-
agement structures risks can be kept to acceptable levels.
2 Quadrant 2 Developmental activity: This situation sees clear marketing
goals and a well-defined market reaction, but uncertainty as to how
such outcomes can be achieved. Many NPD projects fall into this cate-
gory. For example, marketing has defined a specific need, but there is
a debate as to the means of satisfying such needs. Given the high
degrees of uncertainty over how to achieve outcomes plus a require-
ment to commit (often substantial) resources, risk factors can be high.
3 Quadrant 3 Market development: The method and technologies are proven
and well understood and uncertainty of outcome relates to applying
such methods to new opportunities. The process of market develop-
ment aims to find new applications and target new markets or market