Edtf/on. Merle Crawford. University of Michigan Emeritus. Anthony Di Benedetto. temple University. McGraw-Hill Irwln. Me Graw Hill

Transcription

1 Edtf/on Merle Crawford University of Michigan Emeritus Anthony Di Benedetto temple University Me Graw Hill McGraw-Hill Irwln

2 Contents PART ONE OVERVIEW AND OPPORTUNITY IDENTIFICATION/SELECTION 3 Chapter 1 The Strategic Elements of Product Development 5 Setting 5 The Importance of New Products 6 Globalization and New Product Development 8 How Product Development Is Different 11 What Is a New Product, and What Leads to Success? 13 Does This Field of Activity Have a Unique Vocabulary? 16 Does the Field of New Products Offer Careers? 17 The Strategic Elements of Product Development 18 The Basic New Products Process 19 The Other Strategic Elements 23 Product Development in Action 24 Summary 24 Applications 24 Chapter 2 The New Products Process 26 Setting 26 The Procter & Gamble Cosmetics Saga 26 The Product Innovation Charter (PIC) 27 The New Products Process 28 The New Product Portfolio 28 Supporting the Strategic Elements: Effective Team Management 29 What Happened in That Saga? 29 The Phases in the New Products Process 30 Phase 1: Opportunity Identification and Selection 31 Phase 2: Concept Generation 32 Phase 3: Concept/Project Evaluation 32 Phase 4: Development 33 Phase 5: Launch 34 Evaluation Tasks Throughout the New Products Process 35 Speeding the Product to Market 38 Risks and Guidelines in Speeding to Market 41 What about New Services? 44 What about New-to-the-World Products? 46 Closing Thoughts about the New Products Process 52 Summary 54 Applications 54 Case: Tastykake Sensables 55 Case: The Levacor Heart Pump 57 Chapter 3 Opportunity Identification and Selection: Strategic Planning for New Products 60 Setting 60 A Product Strategy for a "Company within a Company" 61 New Product Strategy Inputs and Identifying Opportunities 61 Product Platform Planning 61 Opportunity Identification 65 Noncorporate Strategic Planning 68 Miscellaneous Sources 69 The Product Innovation Charter 69 Why Have a PIC? 71 The Sections of the PIC 73 Background Section of the PIC 73 The Arena (Area of Focus) Section of the PIC 73 Goals and Objectives Section of the PIC 76 Special Guidelines Section of the PIC 77 How to Prepare a Product Innovation Charter 79

3 Contents xi Product Portfolio Analysis: The New Product's Strategic Fit 81 Summary 85 Applications 85 Case: New Product Strategy at Kellogg 86 Case: The Honda Element 87 PART TWO CONCEPT GENERATION 93 Chapter 4 Creativity and the Product Concept 95 Setting 95 Preparation 95 The Product Innovation Charter 95 Finding the Right People 96 Management's Role in Creativity 97 Activities to Encourage Creativity 99 Special Rewards 101 The Removal of Roadblocks 101 The Product Concept 102 The Designer Decaf Example 105 The Concept Statement 106 Two Basic Approaches 108 Important Sources of Ready-Made New Product Ideas 109 Lead Users 111 Open Innovation 115 Summary 119 Applications 120 Case: P&G CarpetFlick 121 / Case: Aquafresh White Trays 122 Chapter 5 Finding and Solving Customers' Problems 125 Setting 125 The Overall System of Internal Concept Generation 125 Gathering the Problems 126 Internal Records 127 Direct Inputs from Technical and Marketing Departments 127 Problem Analysis 128 Scenario Analysis 136 Solving the Problems 140 Group Creativity 141 Brainstorming 141 Electronic Brainstorming and Computer-Assisted Creativity Techniques 142 Online Communities 143 Disciplines Panel 145 Concept Generation Techniques in Action 145 Summary 145 Applications 146 Case: Campbell's IQ Meals 147 Case: Earning Organizational Respect 148 Chapter 6 Analytical Attribute Approaches: Introduction and Perceptual Mapping 150 Setting 150 Understanding Why Customers Buy a Product 150 Products Are Groups of Attributes 150 Analyzing Product Attributes for Concept Generation and Evaluation 152 Gap Analysis 152 Determinant Gap Maps 153 Perceptual Gap Maps Based on Attribute Ratings (AR) 154 Perceptual Gap Maps Based on Overall Similarities (OS) 160 Comments on Gap Analysis 163 Summary 164 Applications 164 Case: Dell Computers (A) 165 Chapter 7 Analytical Attribute Approaches: Trade-Off Analysis and Qualitative Techniques 167 Setting 167 Trade-Off Analysis 167 Using Trade-Off Analysis to Generate Concepts 168 A Conjoint Analysis Application 169

4 xii Contents Alternatives to Full-Profile Conjoint Analysis 173 Recent Modifications in Conjoint Analysis 174 Virtual Prototypes in Concept Testing 175 Qualitative Techniques 176 Dimensional Analysis 176 Checklists 176 Relationships Analysis 178 About the Dimensions Used in Relationships Analysis 179 Two-Dimensional Matrix 179 Morphological or Multidimensional Matrix 180 Analogy 181 Summary 182 Applications 183 Case: Rubbermaid Inc. 183 PART THREE CONCEPT/PROJECT EVALUATION 187 Chapter 8 The Concept Evaluation System 189 Setting 189 What's Going On in the New Products Process? 189 The Evaluation System for the Basic New Products Process 190 Product Line Considerations in Concept Evaluation -192 The Cumulative Expenditures Curve 193 The Risk/Payoff Matrix 194 The Decay Curve 195 Planning the Evaluation System 196 Everything Is Tentative 197 Potholes 197 The People Dimension 198 Surrogates 199 The A-T-A-R Model 200 Where Do We Get the Figures for the A-T-A-R Model? 204 Further Uses of the A-T-A-R Model 204 Summary 205 Applications 205 Case: Chipotle Mexican Grill 206 Case: Concept Development Corporation 207 Chapter 9 Concept Testing 209 Setting 209 The Importance of Up-Front Evaluations 209 The Product Innovation Charter 210 Market Analysis 211 Initial Reaction 211 Concept Testing and Development 212 What Is a New Product Concept? 214 The Purposes of Concept Testing 214 Considerations in Concept Testing Research 216 Prepare the Concept Statement 216 Define the Respondent Group 220 Select the Response Situation 221 Prepare the Interviewing Sequence 222 Variations 222 Analyzing Research Results 223 Identifying Benefit Segments 223 Joint Space Maps 224 Conjoint Analysis in Concept Testing 228 Market Research to Support Concept Testing 230 Conclusions 233 Summary 233 Applications 234 Case: Nokia 234 Case: Dell Computers (B) 236 Chapter 10 The Full Screen 237 Setting 237 Purposes of the Full Screen 237 The Scoring Model 239 Introduction to Scoring Models 240 The Screening Procedure 241 Profile Sheet 246 A Screening Model Based on Project NewProd 247 The Analytic Hierarchy Process 248 Special Aspects 251 Summary 252 Applications 252 Case: WiLife, Inc. (A) 253

5 Contents xiii Chapter 11 Sales Forecasting and Financial Analysis 255 Setting 255 Sales Forecasting for New Products 256 Forecasting Sales Using Purchase Intentions 257 Forecasting Sales Using the A-T-A-R Model 259 Techniques for Forecasting Product Diffusion 261 Observations on Forecasting Models 263 Problems with Sales Forecasting 264 Summary of the Problems 265 Actions by Managers to Handle These Problems 265 Improve the New Product Process Currently in Use 265 Use the Life Cycle Concept of Financial Analysis 266 Reduce Dependence on Poor Forecasts 267 Return to the PIC 272 Summary 274 Applications 275 Case: Bay City Electronics 276 Compiling the Key Data 280 Chapter 12 Product Protocol 283 Setting 283 The Product Protocol 284 Purposes of the Protocol y 286 Protocol's Specific Contents 288 Target Market 288 Positioning 290 Product Attributes 290 Competitive Comparisons and Augmentation Dimensions 292 Other Components of the Product Protocol 293 Protocol and the Voice of the Customer 293 What Is the Voice of the Customer? 293 Hearing the Voice of the Customer 294 Protocol and Quality Function Deployment (QFD) 296 QFD and the House of Quality 296 Outcomes of QFD. 300 Some Warnings about the Difficulty of the Protocol Process 302 Summary 303 Applications 304 Case: WiLife, Inc. (B) 304 PART FOUR DEVELOPMENT 307 Chapter 13 Design 311 Setting 311 What Is Design? 311 The Role of Design in the New Products Process., 312 Contributions of Design to New Product Goals 313 Product Architecture 318 A Process for Product Architecture 318 Product Architecture and Product Platforms 320 Industrial Design and the Industrial Designer 320 Prototype Development 322 Managing the Interfaces in the Design Process 323 Improving the Interfaces in the Design Process 326 Computer-Aided Design and Design for Manufacturability 328 Continuous Improvement in Design 330 Summary 330 Applications 330 Case: The Mini 331 Case: Palm Pilot 332 Case: Gillette Mach3 335 Chapter 14 Development Team Management 338 Setting 338 What Is a Team? 338 Structuring the Team 339 Another Look at Projectization 342 Building a Team 343 Establishing a Culture of Collaboration 343 The Team Assignment and Ownership 344 Selecting the Leader 345

6 xiv Contents Selecting the Team Members 346 Roles and Participants 347 Network Building 350 Training the Teams 350 Managing the Team 351 Cross-Functional Interface Management 352 Overcoming Barriers to Market Orientation 354 Ongoing Management of the Team 355 Team Compensation and Motivation 355 Closing the Team Down 357 Virtual Teams 357 Managing Globally Dispersed Teams 358 Summary 363 Applications 363 Case: Marko Products 364 Case: Ford Mondeo 366 Chapter 15 Product Use Testing 368 Setting 368 The Role of Marketing During Development 369 Marketing Is Involved from the Beginning of the Process 369 Marketing Ramp-Up, or the "I Think We've Got It" Phase 370 Why Do Product Use Testing? 371 Is Product Use Testing Really Necessary? 371 Are These Arguments Correct? 372 Knowledge Gained from Product Use Testing 374 Pre-Use Sense Reactions 374 Early Use Experiences 375 Alpha and Beta Tests 375 Gamma Testing 377 Diagnostic Information 378 Decisions in Product Use Testing 378 Who Should Be in the User Group? 379 How Should We Reach the User Group? 380 Should We Disclose Our Identity? 380 How Much Explanation Should We Provide? 380 How Much Control over Product Use Should There Be? 381 How Should the Test Be Conducted? 381 Over What Time Period Should the Test Be Conducted? 383 What Should Be the Source of the Product Being Tested? 383 What Should Be the Form of the Product Being Tested? 383 How Should We Record Respondents' Reactions? 384 How Should We Interpret the Figures We Get? 386 Who Should Do the Product Use Test? 386 Special Problems 386 Don't Change the Data fust Because They Came Out Wrong 386 Be Alert to Strange Conditions 386 What If We Have to Go Ahead without Good Use Testing? 387 Summary 387 Applications 387 Case: Product Use Testing for New Consumer Nondurables 388 PART FIVE LAUNCH 391 Chapter 16 Strategic Launch Planning 394 Setting 394 The Strategic Givens 395 Revisiting the Strategic Goals 396 Strategic Platform Decisions 397 Type of Demand Sought 397 Permanence 398 Aggressiveness 399 Competitive Advantage 399 Product Line Replacement 399 Competitive Relationship 401 Scope of Market Entry 401 Image 401 The Target Market Decision 401 Alternative Ways to Segment a Market 402 Micromarketing and Mass Customization 403 Targeting May Also Use Diffusion of Innovation 406 Product Positioning 408 Creating Unique Value for the Chosen Target 410 Branding and Brand Management 412 Trademarks and Registration 412

7 Contents xv What Is a Good Brand Name? 414 Managing Brand Equity 416 Brand Equity and Branding Strategies 420 Global Branding and Positioning: Standardize or Adapt? 421 Global Brand Leadership 422 Packaging 423 The Role of Packaging 423 The Packaging Decision 423 Summary 424 Applications 424 Case:Wii 425 Case: Iridium 426 Case: Dell Computers (C) 428 Chapter 17 Implementation of the Strategic Plan 429 Setting 429 The Launch Cycle 429 Prelaunch and Preannouncement 429 Announcement, Beachhead, and Early Growth 432 Launch Tactics 433 The Communications Plan 434 The Copy Strategy Statement 435 Personal Selling 436 Alliances 437 A-T-A-R Requirements- 437 Awareness 437 Stocking and Availability 438 Trial 440 Repeat Purchase 444 Summary 444 Applications 444 CASE: Hulu 445 Case: Dodge Nitro 447 Case: Celsius and Enviga 449 Answers to the Issues in Figure V Chapter 18 Market Testing 452 Setting 452 The Market Testing Decision 452 When Is the Decision Made? 453 Is This an Easy Decision to Make? 453 Market Tests Must Have Teeth 454 The Factors for Deciding Whether to Market Test 456 Methods of Market Testing 458 Pseudo Sale 459 Controlled Sale 459 Full Sale 460 Pseudo Sale Methods 460 Speculative Sale 460 Simulated Test Market 461 Controlled Sale Methods 465 Informal Selling 465 Direct Marketing 466 Minimarkets 466 Scanner Market Testing 467 Full Sale Methods 469 Test Marketing 469 The Rollout 472 Wrap-Up on Market Testing Methodologies 477 Summary 477 Applications 478 Case: PepsiCo Pepsi-Kona and Pepsi One 478 Case: Square D Remote Lamp Dimmer 480 Chapter 19 Launch Management 482 Setting 482 What We Mean by Launch Management 482 The Launch Management System 483 Step One: Spot Potential Problems 484 Step Two: Select the Control Events 488 Step Three: Develop Contingency Plans 489 Step Four: Design the Tracking System 490 Effective Metrics: Learning from Experience 494 A Sample Launch Management Plan 495 Launch Management and Knowledge Creation 497 Product Failure 498 Summary 501 Applications 501 Case: Levitra 502 Case: SpinVox 503

8 xvi Contents Chapter 20 Public Policy Issues 505 Setting 505 Bigger Picture: A Cycle of Concerns 505 Phase I: Stirring 507 Phase II: Trial Support 507 Phase III: The Political Arena 507 Phase IV: Regulatory Adjustment 508 Business Attitudes toward Product Issues 508 Current Problem Areas 508 Product Liability 509 Typology of Injury Sources 509 The Four Legal Bases for Product Liability 511 Other Legislation 513 Planning for the Product Recall 514 Prior to the Recall 514 During the Recall 514 After the Recall 514 Attempts at Standardization and Clarification 515 Environmental Needs 515 Product Piracy 518 Worthy Products 518 Morality 519 Monopoly 520 Personal Ethics 520 ; The Underlying Residual Issues 522 What Are New Products Managers Doing about All This? 523 Strategy and Policy 523 Control Systems 523 Product Testing 523 Marketing and Market Testing 523 Customer Education and External Affairs 524 Summary 524 Applications 525 Case: Clorox Green Works 526 Case: Hybrid or Hydrogen Vehicles at General Motors? 528 Case: Product (RED) 530 Solutions to Figure Appendix A Sources of Ideas Already Generated 533 Appendix B Other Techniques of Concept Generation 539 Appendix C The Marketing Plan 549 Appendix D Guidelines for Evaluating a New Products Program 555 Index 559