Marketing_L6(2013)
.pdf
Academic year 2013-2014
Marke&ng
Lecture 6
Yana Shigina
Marke&ng department NRU HSE
Content for today
• New Product Development
• Product LifeCycle
New Product Development and
Product Life-Cycle Strategies
• New-Product Development Strategy
• The New-Product Development Process
• Product Life-Cycle Strategies
New-Product Development Strategy
New-product development
The development of original products, product improvements, product modifica&ons, and new brands through the firm’s own product development e orts.
Bad %mes are “when winners and losers get created”
Anne Mulcahy,Xerox CEO
“The ability to reinforce great marke%ng and great brand is extraordinarily important. The world will pass you by if you are not constantly innova%ng.”
John Hayes, CEO of American Express
of all new products fail or drama&cally underperform
Each year, companies lose an es&mated
on failed food products alone
Why do so many new products fail?
The New-Product Development
Process
Idea Genera&on
The systema%c search for new-product ideas
R&D
Employee and Co-Worker
Sugges&ons
Customer
Distributors
Suppliers
Compe&tors
Crowdsourcing
Open-innova;on
Cisco makes it everybody’s business to come up with great ideas. It set up an internal wiki called Idea Zone or I-Zone, through which any Cisco employee can propose an idea for a new product or comment on or modify someone else’s proposed idea.
I-Zone has generated hundreds of ideas, leading to the forma;on of four new Cisco business units.