NEW PRODUCT MARKETING

THREE OBJECTIVES:

1.MORE OF IT

2.FASTER

3.WITHIN BUDGET

WHY NEW PRODUCTS?

1.REVENUE GENERATION

2.GROWTH

3.PROFITABILITY

4.LEARNING CURVE

5.ECONOMIES OF SCALE

6.KEEP COMPETITION OFF BALANCE

7.ADDRESS GLOBALIZATION OPPORTUNITIES

8.KEEP YOUR PEOPLE ENERGIZED

9.HAPPY CUSTOMERS

10.  MAKES YOU COMPETITIVE WITH LARGER COMPANIES

DEFINE NEW?

NEW TO THE “WORLD”

NEW TO YOUR COMPANY

PRODUCT LINE EXTENSIONS

IMPROVED CURRENT PRODUCTS

NEW APPLICATIONS (REPOSITION)

COST REDUCTIONS IN COMPONENT PARTS

REASONS WHY “NEW” PRODUCTS FAIL

1.NO NEED FOR THE NEW PRODUCT

2.YOUR PRODUCT DOESN’T MEET THE NEED

3.QUALITY ISSUES

4.MARKETING ISSUES

5.COST/NOT PROFITABLE

FIVE PHASES OF NEW PRODUCT DEVELOPMENT:

1.OPPORTUNITY IDENTIFICATION

2.CONCEPT GENERATION

3.CONCEPT/PROJECT EVALUATION

4.DEVELOPMENT

5.LAUNCH

LET’S DO IT FASTER………………………

ACCELERATED PRODUCT DEVELOPMENT

HOW?

THROUGH GOOD MANAGEMENT

NOT JUST……………………

WORKING HARDER

FOR EXAMPLE:

1.CROSS FUNCTIONAL TEAMS

2.PROCESS MANAGEMENT THINKING

3.USE OF TECHNOLOGY

4.PARTNERING

5.DATA NETWORKING

6.LEARNING CURVES

7.COMPENSATION/MOTIVATION

8.PARALLEL PROCESSING

9.REMOVE TOP MANAGEMENT ROADBLOCKS

10. EMPOWER AND TRAIN EMPLOYEES

11. PLANNING  “THE 10 RULE”

THE 10 RULE:

EVERY ACTIVITY HAS THREE STAGES

1.PLANNING

2.IMPLEMENTATION

3.DELIVERY TO A “CUSTOMER”

EACH STAGE HAS ITS OWN COST

COST INCREASES BY MULTIPLIERS OF TEN

TWO IMPLICATIONS OF THE 10 RULE

1.PLANNING IS THE LEAST EXPENSIVE

PLACE TO WORK

2.YOU CAN FIND AND FIX MOST OF

YOUR MISTAKES IN PLANNING