Objectives Challenges in New Product Development(NPD) Organizational structure NPD Stages Management of NPD Diffusion Adoption of New Products @2000 Prentice Hall
©2000 Prentice Hall Objectives Challenges in New Product Development (NPD) Organizational Structure & NPD Stages & Management of NPD Diffusion & Adoption of New Products
Why New Products Fail “ Over Championing Overestimated demand Poor design Poor Marketing EXecution High development Costs Strong Competitive Reaction @2000 Prentice Hall
©2000 Prentice Hall Why New Products Fail “Over Championing” Overestimated Demand Poor Design Poor Marketing Execution High Development Costs Strong Competitive Reaction
Challenges in NPD Idea Shortage Fragmented Markets Social Governmental Constraints Cost Capital Shortage Need for Speed Shorter Product Life Cycles @2000 Prentice Hall
©2000 Prentice Hall Challenges in NPD Idea Shortage Fragmented Markets Social & Governmental Constraints Cost Capital Shortage Need for Speed Shorter Product Life Cycles
Probability of Success Overall Probability Probability of Probability of probability of technical commercialization economIc of success completion given technical success given completion commercialization @2000 Prentice Hall
©2000 Prentice Hall Probability of Success Probability of technical completion Overall probability of success = Probability of commercialization given technical completion X Probability of economic success given commercialization X
Concept Development Testing 1. Develop Product Ideas into Alternative Product Concepts 2. Concept Testing- Test the Product Concepts with Groups of Target Customers 3. Choose the best one @2000 Prentice Hall
©2000 Prentice Hall Concept Development & Testing 1. Develop Product Ideas into Alternative Product Concepts 2. Concept Testing - Test the Product Concepts with Groups of Target Customers 3. Choose the Best One