Developing
Marketing(^358) Strategies
APPLICATIONS
2.Successful new-product development requires the company to establish an effec-
tive organization for managing the development process. Companies can choose
to use product managers, new-product managers, new-product committees, new-
product departments, or new-product venture teams.
3.Eight stages are involved in the new-product development process: idea genera-
tion, screening, concept development and testing, marketing strategy development,
business analysis, product development, market testing, and commercialization.
The purpose of each stage is to determine whether the idea should be dropped or
moved to the next stage.
4.The consumer-adoption process is the process by which customers learn about new
products, try them, and adopt or reject them. Today many marketers are targeting
heavy users and early adopters of new products, because both groups can be reached
by specific media and tend to be opinion leaders. The consumer-adoption process
is influenced by many factors beyond the marketer’s control, including consumers’
and organizations’ willingness to try new products, personal influences, and the
characteristics of the new product or innovation.
Attribute Listing Worksheet
Attributes Magnify Minify Substitute Adapt Rearrange Reverse Combine New Uses Replace
CONCEPTS
1.To generate really good new-product ideas you need inspiration, perspiration,
and good techniques. Some companies struggle with trying to develop new-prod-
uct ideas because they place more emphasis on inspiration and perspiration than
they do on technique. Attribute listing, Alex Osborn’s powerful creative tool, can
activate the creative juices in just about everyone. Identify a product or service
that you are familiar with and list its attributes. Then modify each attribute in
search of an improved product. The following form will be useful in your de-
liberations. If you are having trouble getting started, consider a famous example
of attribute alteration and expansion: that of Oreo cookies. From the simple, black-
and-white Oreo, Nabisco has developed double-stuff Oreos, chocolate-covered
Oreos, giant-size Oreos, mini-size Oreos, low-fat Oreos, lower-calorie Oreos, differ-
ent packaging and package sizes, Oreo cookie ice cream, Oreo cookie ice cream
cones, Oreo granola bars, Oreo cereal, and Oreo snack treats.
2.Prepare a list of questions that management should answer prior to developing a
new product or service. Organize the questions according to the following cate-
gories: (a) market opportunity, (b) competition, (c) production, (d) patentable fea-
tures, (e) distribution (for products) or delivery (for services), and (f) finance. Then
answer each question for a new-product idea you have. Would the development
and testing of a new service differ from those of a new product?