Developing and Launching New Offerings – Chapter 14 (part 1)

Chris FreemanPADM 7040

Background

Aggressive competition among non-profits leads to possibility that the organization becomes obsolete.

“A well-managed organization cannot survive merely on chance or insight. New offerings must continually be generated” (Andreasen & Kotler, 2003, p. 350).

A system for the generation of new offerings must be put in place.

(Andreasen & Kotler, 2003)

Offer DevelopmentSeveral strategies exist for offer development:

“Playing it safe” Sell existing offerings to new markets

“Building on what works” New, similar offerings sold to new and existing markets

“Branching out” Move the organization in new directions and into new

markets (Andreasen & Kotler, 2003)

Mission Creep

“While it is important…to evaluate new ideas…to keep the organization growing…there is the real danger that projects…are not good fits for organizations” (Andreasen & Kotler, 2003, p.353).

Mission creep leads to need for new staff and skills not “in synergy” with organization.

Loss of focus is unappealing to potential donors

Ask often: “Is [the new program] consistent with the mission?” (Andreasen & Kotler, 2003, p.353).

(Andreasen & Kotler, 2003)

The Development Process

1. Idea generation2. Idea screening3. Concept development and testing4. Marketing strategy formulation5. Business analysis6. Offer development7. Market testing8. Commercialization9. Launch (Andreasen & Kotler, 2003, p.354)

Idea Generation

Don’t rely on chance or past, successful concepts:

1. Commit to systematic development process2. Designate organizational development leader3. Formalize the process4. Encourage creativity

(Andreasen & Kotler, 2003)

Idea Screening

Not all ideas are good but it’s less costly to drop a good one than to develop a poor one. Screening is vital.

1. Develop a screening committee and meet often

2. Have formal, baseline criteria and “weight” each criterion

3. Be prepared for meetings to judge each idea objectively

(Andreasen & Kotler, 2003)

Development and Testing

Grow ideas into marketable concepts: One, generic idea can take many potential

forms Create a marketable image

Test the image through market research: Surveys Conjoint analysis

(Andreasen & Kotler, 2003)

Marketing Strategy Formulation

Develop an offering’s marketing strategy focusing on: Structure, intended positioning, and short-

term/impact goals Intended price, distribution strategy, and

marketing budget Long-term goals and marketing mix strategy

(Andreasen & Kotler, 2003)

Business Analysis

Carefully estimate offering costs and revenues.

Use realistic hypotheticals to gauge financial feasibility of offering.

(Andreasen & Kotler, 2003)

Offer Development & Market Testing

Develop real marketing campaign materials and test on consumers.

Introduce the offering in “authentic consumer setting” (Andreasen & Kotler, 2003, p.361)

and gauge response. Provides insight into both project feasibility

and best marketing strategies. (Andreasen &

Kotler, 2003)

Commercialization

Before launching new program, ask:1. When?2. Where?3. To whom?4. How?

Assign organizational responsibility.Develop formal schedule of marketing tasks.

(Andreasen & Kotler, 2003)