PARTI Overview a n d P r e p a r a t i o n 1 THE MENU 3

Why Does This Field Deserve Study? How Does This Field Relate to Other Courses of Study? But, How Does It Differ from Those Other Courses? But, Don't We Study about New Products in Other Courses, Too? OK, So What Is a New Product? Does This Book Cover Such Things as New Services, New Industrial Products, and New International Products? On What Basic Ideas or Concepts Is This Field of Activity Built? Is New Products Management an Art or a Science? Does This Field of Activity Have a Unique Vocabulary? What Prior Training Is Presumed? Does the Field of New Products Offer Careers? Given All of This, What Will We Being Doing in This Book? 2 THE NEW PRODUCTS PROCESS 23

Setting It Doesn't Work That Way The Highlighter Saga What Happened in That Saga? The New Products Process Where It Starts Ideation Screening Development Commercialization Product Definition Differences by Type of Organization Some Comments about the New Products Process The Process Is Hard to Identify in Practice There Are Different Views on What the Process Is Multifunctionality Managerial Control Practice Seems to Fail Prescription Implications for Aspiring New Products Managers Case: Aziza Polishing Pen

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STRATEGIC PLANNING FOR NEW PRODUCTS: THE PRODUCT INNOVATION CHARTER Setting Why Have Strategic Planning? What Form Does Product Innovation Strategy Take? Background Section The Focus Goals and Objectives Special Guidelines Examples of Product Innovation Charters The Process for Developing Charters Three Sources of Opportunities Evaluating Opportunities Interesting Aspects Case: Apple Computer Co.

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PART II The Ideation Stage 4 CONCEPT GENERATION: GOALS, PROCESS, AND PEOPLE 73

Setting Where Concept Generation Fits in the Process The Concept The Sequence Benefit plus Either Form or Technology Getting a Testable Concept The Task of Concept Fulfillment Skipping Some of the Stages The Process of Ideation Nonstrategic Ideation Gathering Ideas Already Created Creative People and Their Management Creative People: Which Ones Are They? How to Manage the Creative Function Case: The Kids Wise Up

CONCEPT GENERATION: THE PROBLEM/ SOLUTION ROUTE

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Setting Review Determining Needs and Problems Routine Market Contacts Problem Analysis Scenario Analysis Solving the Problems: Group Creativity Brainstorming Disciplines Panel Case: Six Key Trends 6 ATTRIBUTE ANALYSIS Setting Attribute Analysis Attributes Dimensional Analysis Checklists Gap Analysis Trade-Off Analysis Case: Sound 7 OTHER FORTUITOUS SCAN METHODS AND OUTSIDE IDEAS 135 117

Setting Relationships Analysis About the Dimensions Used in Relationships Analysis Two-Dimensional Matrix Morphological or Multidimensional Matrix Analogy Lateral Search Lateral ThinkingAvoidance Forced Relationships

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Creative Stimuli Big Winner Competitive Analysis Is There an Ideal System Combining the Best of the Many Concept Generation Techniques? Ethics Handling the Outside Idea Legal Background Recommended Procedure The Waiver Acceptable Alternatives Patents Make a Comeback Case: Golden Enterprises PART III Concept Evaluation 8 THE CONCEPT EVALUATION SYSTEM 157

Setting What's Going on in the New Products Process? Purposes of Evaluation Balanced Product Innovation Portfolio The Twin Streams Concept The Cumulative Expenditures Curve The Risk Matrix The Decay Curve Planning the Evaluation System Everything Is Tentative Potholes The People Dimension Surrogates Case: Concept Development Corporation 9 CHARTER AND PRESCREENING 175

Setting The Product Innovation Charter Market Analysis Initial Reaction Concept Testing and Development What Is a New Product Concept? The Purposes of Concept Testing Research Procedure Prepare Concept Statement Define the Respondent Group Select Response Situation Prepare the Interviewing Sequence Trial Interviewing Interview, Tabulate, Analyze Conclusions Case: Wolverine Car Wash 10 THE FULL SCREEN 196

Setting Purposes of the Full Screen Screening Alternatives Simple Judgment Single-Drive Decisions Portfolio Models Financial Model Checklists Scoring Models The Scoring Model Introductory Concept The Procedure Profile Sheet A Research-Based Model Special Aspects Protocol Examples The Process The Recommended Format The Overall System Testing the Prototype Against the Protocol Repeat the Concept Test Case: Wilson Sporting Goods 11 PRODUCT USE TESTING 219

Setting Is Product Use Testing Necessary? Are These Arguments Correct? The Problem of Beta Testing Types of

Product Use Testing Purposes of Product Use Testing Testing Dimensions A. Testing Dimensions Concerning What We Need to Learn B. Testing Dimensions Concerning Contacting Test Groups C. Testing Dimensions Concerning Product Usage D. Testing Dimensions Concerning the Product Itself E. Testing Dimensions Concerning Measurement and Analysis Special Problems Services Case: The Cat Challenger 65 12 MARKET TESTING: PSEUDO SALE 248

Setting Where We Are in the Process What Market Testing Is All About Purposes of Market Testing The A-T-R Model Where Do We Get the Figures for the A-T-R Model? Methods of Market Testing Pseudo Sale Controlled Sale Full Sale Systems Pseudo Sale Methods Speculative Simulated Test Marketing (STM) Case: Electronic Measurements, Inc. 13 MARKET TESTING: CONTROLLED SALE AND FULL SALE

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Setting Controlled Sale Informal Selling Direct Marketing Minimarkets Scanner Markets Full Sale Test Marketing Limited Marketing (Roll-Out) Case: Square D Remote Lamp Dimmer 14 FINANCIAL ANALYSIS 290

Setting Where We Are at the Moment Financial Analysis Is a Continuing Process When to Finalize It? Traditional Financial Analysis for New Products Compiling the Key Data Other Considerations Simplified Version Sales Forecasting Special Views The Strong Leader The Use of Predictors Put Risk back into the Game New Accounting Methods Case: Bay City Electronics PART IV Commercialization 15 CONTROL AND LAUNCH CYCLE Setting The Concept of Managerial Control The Requirements of Control Planning and Reporting Systems Used Inherent Problems The Launch Cycle Pre-Launch Preparation Announcement Beachhead Growth 315

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Variations in the Above Phases Adoption and Diffusion of Innovation Case: The Cyclotron Corp. 16 THE MARKETING PLAN 335

Setting The Marketing Plan Contents Management of the Task Strategy Target Market Alternatives Making the Decision The "Broaden the Market" Syndrome Positioning Alternatives in Positioning Surrogates Defined The Decision Process Cautions Marketing Mix Options in Marketing Mix Strategy Case: Barstow Chemical Co. 17 TOOLS OF THE MARKETING MIX 357

Setting Product as a Marketing Tool The Physical Good or Service Procedure Branding Packaging Other Aspects of the Product Tool The Other Three Marketing Tools Relationships with Personnel from the Other Tools Price as a Positive Marketing Tool Every Marketing Tool Should Be Given a Role to Play The Forgotten Tools Changes during Launch Variations Abound Case: Chilled Foods 18 POST-LAUNCH CONTROL 381

Setting What We Mean by Launch Control The Launch Control System Step One: Spotting Potential Problems Step Two: Selecting the Control Events Step Three: Developing Contingency Plans Step Four: Designing the Tracking System A Sample Launch Control Plan Objections to Launch Control No Launch Control on Temporary Products Product Failure Case: Interfoods Inc.: Valley Butter PARTV Structure/Environment 19 ORGANIZING FOR NEW PRODUCTS 407

Setting The Situation Today Getting Ready The Options The Hidden Power of the Team Other Terms and Approaches Another Look at Projectization Caution Summary of Operating Characteristics and Making a Selection Is There an Ideal Organizational Form ? Complexities of Structure behind the Teams Small Is Good Roles/Participants Entrepreneurship Outside Service Organizations Outside Coupling, Joint Ventures Global Case: Marko Products

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MANAGING THE PROCESS

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Setting Why Management Is Important Overall Styles of Management The Role of Top Management Making Teams Work Getting StartedTeam Building Selecting the Leader Selecting the Team Members Ongoing Management of the Team Closing the Team Down Special Problems and Activities Battling Bureaucracy Last-Minute Changes Case: P&G and the Great Team Switch 21 PUBLIC POLICY ISSUES: PRODUCT LIABILITY 453 Setting The Way It Was The Way It Is Bigger Picture: A Cycle of Concerns Phase I: Stirring Phase II: Trial Support Phase III: The Political Arena Phase TV: Regulatory Adjustment Business Attitudes toward Product Issues Scope of the Problem Current Problem Areas Product Liability Status Today Typology of Injury Sources Caution The Four Legal Bases for Product Liability Other Legislation Attempts at Standardization and Clarification Current Situation Case: Hartz Mountain and Blockade Tick and Flea Spray 22 PUBLIC POLICY ISSUES (CONTINUED) 474

Setting Quality of the Purchase Decision Inadequate or Incorrect Information Consumers' Buying Habits Are Casual and Careless Simultaneous Excessive Choice and Inadequate Choice Twisted Priorities Product Performance Morality Monopoly Ecology The Underlying Residual Issues What Are Reasonable Goals for Action Here? Can the Market System Rule? The Trade-Off Problem How Should We Meet Needs that the Market Apparently Cannot Meet? Where Should the Costs Fall ? What Are New Products Managers Doing about All This? Strategy and Policy Control Systems Product Testing Market Testing Education External Affairs Personal Ethics Case: Trintex, by IBM and Sears

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CONCLUSION: THE FUTURE AND OTHER THOUGHTS

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Setting Future Changes in the Environment for Product Innovation Positive Forces Negative Forces Conclusion Future Changes in the Process of Product Innovation The Process as a Whole In the Strategy Phase In the Organization Phase In the Concept Generation Phase In the Evaluation Phase In the Commercialization Phase

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Specific New Products or Types of New Products Concluding Matters Complaints of CEOs about New Products Managers Evaluating an Ongoing Product Innovation System Appendix A: Sources of Ideas Already Generated Appendix B: Other Techniques of Concept Generation Appendix C: Small's Ideation Stimulator Checklist Appendix D: Glossary Bibliography Index 511 517 523 527 552 555