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Introduction to Product Management
Factors that may speed products through PLC
- Ease of trial (supermarkets, no risk, test drive)
- Ease of use (some assembly required; Toys R Us (bike); Gateway store)
- Easy to communicate advantages (Always low price; cars)
- Compatible with customer experience (Poland & free samples)
Spread of New Products
- Global and Domestic: Perceived as “new”
- Diffusion of Innovation
- Who are you?
- Early adopter (first 2.5% to adopt)
- Early majority (next 13.5%)
- Late majority (next 34%)
- Laggard (last 16% to adopt)
How to Have New Product Failure
- New product failure (70-80% of brands; 80% packaged goods)
- How to fail:
- Offer no unique benefit (Pepsi’s clear soda vs. Secret’s clear deodorant)
- Race to market (Ford Pinto, Ford school bus, Netscape)
- Give little thought to promotion (Chevy NoVa)
- Give little thought to competition (Wal-mart’s impact)
- Skip research or conduct sloppy research
- Try just one new product (top consumer goods companies average trying 75 new products a year)
Summary
- Categories of New Products
- NPD Process
- Product life cycle
- Global/spread of new products
- Diffusion of Innovations
- New product failures