LNE. Introducing New Market Offerings�

EQUIPO 20.  

Gabriela Garza. Thelma Yribarren. Carolina Martinez.

Jorge Varela. Erbey Rodriguez. Alfonso Esparza

The iPad Mini’s Mixed Reception: Tech Bloggers Weigh In.

A brand new iPad Mini, along with a revamped iPhone 5 and speedier regular iPad apparently haven’t been enough to stop Apple’s stock

from a steady decline.  

Van Baker, research vice president at tech research firm Gartner, attributes the sudden slip

to a “perfect storm”. Since Steve Jobs died, all recent Apple releases have been iterations or

improvements on existing products; there had been a lack of completely new innovative

products. This may be worrying consumers who wonder if Apple still has the ability to shock the

market with something as revolutionary as the iPhone again, Baker says.  (Strochlic, 2012)

Apple hasn’t introduced a truly new product since the launch of the iPad nearly three years ago; instead it’s making incremental

and overhyped improvements to its current lines,”

Apple is still a wildly successful leader in the field, but in time the world will be expecting something as game changing as the iPod, iPhone, and

iPad have been. Said Baker: “They’re going to have to bring something to the market where people will go, ‘Gee, I hadn’t thought of that,’ and

they’re going to have to do it well. (Strochlic, 2012)

Innovations happen on a much more rapid basis.

In an economy of rapid change, continuous innovation is a necessity.

A company can add new products through acquisition or

development. (Kotler & Keller,pp 567, 2012)

New product development shapes the company’s future.

Improved or replacement products and services can

maintain or build sales

Companies are challenging industry norms and past

conventions to develop new products and services that

delight and engage consumers.

The new-product development process starts with the search for ideas.

Commercialization valuable characteristics: When (timing)…Where (geographic strategy)…To Whom (target-market prospects)…How.

Companies that fail to develop new products leave their existing offerings vulnerable to changing customer needs and

tastes, new technologies, shortened product life cycles, increased domestic and foreign competition.

!

Why new products fail? Ignored, misinterpreted market research; overestimates of market size; high development costs; poor design; ineffectual performance; incorrect positioning, advertising or price; insufficient distribution support, etc. (Kotler & Keller,pp 570, 2012)

Fewer than 10% of all new products are truly innovative and new to the world

The right corporate culture is another crucial determinant; the firm must prepare to cannibalize existing products, tolerate risk, and maintain a future market orientation.

Some companies simply finance as many projects as possible, hoping to

achieve a few winners. Other companies apply a conventional

percentage of sales figures or spend what the competition spends.

Open innovation movement: Many firms are going outside their bounds to tap external sources of new ideas, including customers, employees, scientists, etc. (Kotler & Keller,pp 577, 2012)

Companies can find good ideas by researching the products and services of competitors and other companies. They can buy their

competitor’s products, take them apart and build better ones.

Attractive ideas must be refined into testable product concepts.

A product idea is a possible product the company might offer to the market. A product concept is an elaborated version of the idea expressed in consumer terms. (Kotler & Keller,pp 585,

2012)

PROD

UCT

DEVE

LOPE

D !

Needs to. !

Prepare sales !

Costs !

Profit projections !

Satisfy company objectives !

Strategy Ideas Development Challenges

Adoption: Is an individual’s decision to become a regular user of a product and is followed by the consumer-loyalty process.

Conclusions    Pr

oces

s of p

rodu

ct d

evelo

pmen

t Idea generation  

Screening  

Concept development and testing  

Marketing strategy development  

Business analysis  

Product development  

Market testing & commercialization.  

Interacting with employees its important because can be a source of ideas for improving production, products and services.

Some products catch on immediately whereas others take a long time to gain acceptance.

References!•  Strochlic, N. (2012, Noviembre 03). The ipad mini’s mixed

reception: Tech bloggers weigh in. Retrieved from http://www.thedailybeast.com/articles/2012/11/03/the-ipad-mini-s-mixed-reception-tech-bloggers-weigh-in.html

•  Strochlic, N. (2012, Noviembre 09). Apple’s falling stock has analysts questioning the company’s dominance. Retrieved from http://www.thedailybeast.com/articles/2012/11/09/apple-s-falling-stock-has-analysts-questioning-the-company-s-dominance.html

•  Kotler, P., & Keller, K. (2012). Marketing management. (14 ed., pp. 657). New Jersey: Pearson.