“Newness” of Products
                       • Repositioning         • Breakthroughs—Major 
       New to                                   Product Modifications
        World
                       • Line Extensions       • “Me Too” Products
                                     New to Company
                                                                        New Products–2
                New Products as Part of 
                   Corporate Strategy
                                 Markets
                       Existing               New
        Existing       Market               Market 
                      Penetration         Development
    Products
           New       New Product         (Diversification)
                     Development
                                                        New Products–3
                     The New Product Development 
                                                    Process
                 Opportunity Identification                       Reposition
                       Market definition                                                                Harvest
                        Idea generation
                                                                               Life-Cycle Management
                     Go               No                                Market response analysis & fine tuning the 
                                                                    marketing mix; Competitor monitoring & defense
                                                                                  Innovation at maturity
                           Design
        Identifying customer needs    Sales 
        forecasting                                                               Go               No
               Product positioning    Engineering
        Marketing mix assessment      Segmentation                                    Introduction
                     Go               No                                            Launch planning
                                                                                   Tracking the launch
                           Testing
                 Advertising & product testing
                Pretest & prelaunch forecasting                                   Go               No
                        Test marketing
                                                                                                            New Products–4
                  Impact of Product Superiority on 
                           Product Success
                                                     Mkt Share
            )                                        53.5%
            %100
            (
                                     Mkt Share
            e                                          98
            t
            a                        32.4%
            r
             
            s 50     Mkt Share         58
            s
            e        11.6%
            c
            c          18.4
            u  0
            S
                      Minimal                               Moderate                              Maximal 
                              
                                                                          Product Superiority
         Based on a study of 203 products in B2B -- Robert G. Cooper, Winning at New Products (1993) .
         Success measured using four factors: (1) whether it met or exceeded management’s criteria for 
         success, (2) the profitability level (1-10 scale), (3) market share at the end of three years, and (4) 
         whether it met company sales and profit objectives (1-10 scale).
                                                                  New Products–5
               Impact of Early Product Definition on 
                           Product Success
          )                                          Mkt Share
          % 100                                      37.3%
          (
                                    Mkt Share
          e
          t                         36.5
          a                                         85.4
          r          Mkt Share
           
          s  50      22.9            64.2
          s
          e
          c
          c            26.2
          u   0
          S
                            Poor                               Moderate                               Strong  
                          
                                                                  Product Definition
        Source: Robert G. Cooper, Winning at New Products (1993)
                                                              New Products–6