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  • Creativity Research

    “You cannot think about thinking without thinking about something”

    (De-Kleer, J)

  • Creativity in Advertising

  • Creative Ads

  • Creative Ads

  • Creative Ads

  • Creative Ads

  • Market is a Complex System

    • Market research revealed that during the last year the satisfaction of the consumers was increased. There were no changes in the product or the marketing activities. Good or bad news?

    • In the firm’s portfolio of products you can spot a product that is an absolutely disaster in its design: All the attributes are in the lowest level compared to the competing brands. what is your suggestion?

  • Ideal points and satisfaction

    Perceptual Map stage 1

    Brand 1

    Perceptual Map stage 2

    Brand 1

    Brand 2

  • Decoy products

    Brand A and brand B competing

    The market before Decoy

    No one buys the decoy product, however...

    The market after Decoy

  • Saddle’s Ubiquity

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    1975 1980 1985 1990 1995 2000

    Saddle in Personal Computers

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    1975 1980 1985 1990 1995 2000

    Saddle in Cordless Phones

  • Different types of adopters

  • The Chasm

  • Saddle’s explication

    Dual Market - the saddle case

    Time

    Sa le

    s Innovators Majority Total Market

  • Saddle’s Criticality

    Dual Market - the non-saddle case

    Time

    Sa le

    s Innovators Majority Total Market

  • Fax Machines

    Fax Machines

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    1986 1988 1990 1992 1994 1996 1998 2000

    ?

  • Fax Machines - Do not forget the Take off

    Fax

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    1000000

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    1960 1965 1970 1975 1980 1985 1990 1995

  • What Is a New Product?

    • New-to-the-World Products • New Category Entries • Additions to Product Lines • Product Improvements • Repositionings

  • Why do Products Fail?

    • Inadequate market analysis • Competitive strength • Insufficient mktg. effort • Higher costs • Poor timing • Inadequate sales force • Inadequate distribution • Product deficiency

    • Bad estimates of market potential

    • General lack of market information

    • Inadequate market size • Over enthusiasm of product

    sponsor • Resistance and impatience • Internal conflicts

    Results of some Older Studies:

  • Why do Products Fail? Project Newprod: A study of over 200 industrial products • “Better mousetrap nobody wanted” -- 28% of failures • “Me-too product meeting competitive brick wall” -- 24% • “Competitive one-upmanship” -- 13% • “Environmental ignorance” -- 7% • “Technical dog product” -- 15% • “The price crunch” -- 15%

    Source: Cooper and Calantone (1979).

  • The Pillars of Success • Unique, superior product • Marketing knowledge and proficiency • Technical (product) knowledge and proficiency

    Together: Winning Strategy

    Best strategy: A unique, superior product (in the eyes of the customer) that delivers unique benefits.

  • The Conflicting Masters of New Products Management

    • Three inputs to the new products process: the right quality product, at the right time, and at the right cost.

    • These conflict with each other but may have synergies too.

    • Issue: how to optimize these relationships in a new product situation.

    Quality

    Time Cost

    Value

  • Failure or Success ?

  • Failure or Success ?

  • Polo Harlequin

    Is it possible that the car designers are not familiar with the customers taste ?

    market researches did not predict such a car

  • Post-It • A failure • An accident • A rare event • An insight • A mistake • Dedication - Test Marketing • New Product

    Why did the marketing researchers of 3M fail to identify the need for such a product ?

    ?12 years

  • What Separates the Winners from the Losers

    • New Product Process Success Factors: – 1. Developing a superior, differentiated product with

    unique benefits and superior value to the customer or user.

    – 2. Having a strong market orientation throughout the process.

    – 3. Undertaking the predevelopment homework up front. – 4. Getting sharp, early product definition before

    development begins.

    Source: Robert G. Cooper (1996).

  • What Separates the Winners from the Losers

    – 5. Quality execution -- completeness, consistency, proficiency -- of activities in the new product process.

    – 6. Having the correct organizational structure: multifunctional, empowered teams.

    – 7. Providing for sharp project selection decisions, leading to focus.

    – 8. Having a well-planned, well-resourced launch. – 9. Correct role for top management: specifying new

    product strategy and providing needed resources.

  • What Separates the Winners from the Losers

    – 10. Achieving speed to market, but with quality of execution. – 11. Having a multistage disciplined new product game plan.

    • Project Selection Success Factors: – 1. Having a unique superior product. – 2. Product-market environment:market attractiveness, competitive

    situation, PLC stage. – 3. Synergy and familiarity.

    In Short: a winning strategy is: • A unique, superior product (in the eyes of the customer)

    that delivers unique benefits.

  • A Mortality Curve of New Product Ideas

    Cumulative Time

    No. of Ideas

    Screening

    Business Analysis

    Development

    Testing Commercialization

    One Successful New Product

  • Uncertainty in New Product Development

    Uncertainty Amount at Stake

    IDEA ------------------------------------------------------------ LAUNCH

    Ideally, a new product development should: --Reduce uncertainty over the development process --Keep amounts at stake low while uncertainty is high

  • A Typical NPD Process

    Opportunity Identification:

    Market definition, Idea Generation

    Screening

    Design: Customer needs, Product positioning, Segmentation, Sales forecasting, Engineering, Marketing mix.

    Testing: Product tests, Market tests, Pretest and Pre-launch forecasting, Tests marketing

    Concept tests

    Introduction: Launch planning, Tracking the launch

    Increased expenditures

    D ecreasing uncertainty

  • The Me-Too Rationale

    80% - 95% of new products fail

    Most of the expenditures on new products are required at the introduction stage

    On average, over 50% of firms’ revenues consists of new products that were launched during the past 5 years

    Some firms are reluctant to innovate

    Me Too products

    Over 98% of concept tests support a “go decision”

  • The Me Too Fallacy

    •While some firms’ strategies consist of “me too”, more than 75% of the “top 3 firms” constantly innovate.

    •The “Me Too” products’ failure rate is of the same magnitude of order.

    •A “Me Too” product has no contribution to firm infrastructure, dimensions of growth or synergy.

  • Rate of Use of NPD Steps among PDMA Members

    Concept searching 90% Concept screening 76% Concept testing 80% Business analysis 89% Product development (technical) 99% Use testing/market testing 87%

  • Ending Idea Erosion: One List of “Killer Phrases”

    • It’s just not right; I can’t tell you why.

    • I know what I want; when I see it I’ll tell you.

    • Here’s my idea, now execute it!

    • It shouldn’t take more than an hour to do.

    • Put it in writing! • Don’t ask questions; just

    follow the rules.

    • You need the approval of five unit heads.

    • I personally wouldn’t do it, but you can try.

    • Why say thank you? It’s his job, isn’t it?

    • What will the boss think? • Don’t rock the boat. • We’ve never done it this

    way before.

  • Historic Roadblocks to Innovation

    “I think there is a world market for maybe five computers.” Thomas Watson, Chair, IBM, 1943.

    “Computers in the future may weigh no more than 1.5 tons.” Popular Mechanics, 1949.

    “I can assure you that data processing is a fad that won’t last out the year.” Business books editor, Prentice-Hall, 1957.

    “So we went to Atari and said, ...’We’ll give it to you. We just want to do it. Pay our salary, we’ll come work for you.’ And they said no. So then we went to HP, and they said ‘We don’t need you, you haven’t got through college yet.’” Steve Jobs, co-founder,