It involve bringing two separate elements into accord: customer satisfaction and technical feasibility. R&D Objectives:
1. The definition of the target market
2. The product’s concept
3. The benefits the product will deliver
4. How the product will be positioned in the market
5. The product’s features, attributes, design specifications and requirements
Quality Function Deployment (QFD)
Alternative managerial technique for product development
Also called flowcharting, describes all process steps that customer and service employees must follow in a given service environment.
Testing of New Product
Testing the new product is the next step in the new product development process during which the company can yield valuable information about customer reactions to a product prototype.
2 Types of Testing
Product Use Testing
Use under normal operating conditions
Types of Product Testing
Is conducted in house, in a laboratory setting or in some part of the developing firm’s regular operations. Beta testing
Takes place on the premises of the intended market users. It is quite common in the software market where beta versions of new software are provided to computer expert for testing. Market Testing
These influences include brand image , price, easy access to the points of sale to name a few.
Main methods of market testing for consumer product:
1. Simulated test marketing
A number of 30-40 potential consumers are tracked down and are invited to participate in the test. 2. Test Marketing
Conducted in a few representative cities
3. Consumer Panels
A number of potential consumers agree to use the new product repetitively and provide their opinion and purchase attention. 4 Main methods in market testing
Distributor and Dealer display rooms
7 Steps of Scott and Keiser Approach
1. The product Adoption decision- making process and the decision-making environment are analysed descriptively to identify first, steps in the process, secondly, key influences involved at each step and choice criteria, thirdly, the dynamics of how various decisions which lead to final choice are reached, fourthly, characteristics of substitute product, fifthly, barriers to acceptance of the innovation and sixthly, positive factors leading to adoption. 2. Attributes of the product, potential suppliers and the decision-making environment, which are believed to influence judgement and decision at various stages in the adoption process are identified. 3. Alternative product offerings are described in terms of combinations of level of the attributes. 4. An appropriate sample or set of samples of potential adopters representing target markets of interests is selected for modelling. 5. Members of the sample are carefully educated in the choices to be made, in order to make conditions of the judgement modelling episode roughly equivalent to the actual decision-making situation that is likely to occur. 6. Decision-makers are asked to make judgement on the product concepts. 7. The judgement are analysed quantitatively to estimate the judgement functions.
Launch of New Products and Services
..Company finalizes and implements:
The production, responsibility of the production department
Marketing Plan, repaired and executed by the marketing department
New product preannouncement
Formal, deliberate communication directed to one or more audiences such as customers, competitors, or distributors.
New Product Launch Strategies
Full Market Launch
This means that the new product is launch to all target markets simultaneously. Rollout Strategy
This means that the launching efforts roll out or are progressively undertaken.
Product Launch Strategies of High Technology Company
Strategy 1. Cooperate with other Producers
Share the Technology
Embark on an...