1. What is a new product?
   1. Continuous Innovation
      1. Conusmers: require no new learning
      2. Marketers: Gain awareness and distribution
   2. Dynamically continuous innovation
      1. Consumers: Disrupts normal routine and requires learning
      2. Marketers: Advertise differences and benefits
   3. Discontinuous innovation
      1. Requires extensive learning and sometimes a critical mass of adopters
      2. Marketers: Education, personal selling, free trial/testing
2. Why do new products fail?
   1. Insignificant point of difference
   2. Unprofitable markets targeted
   3. Poor execution of marketing mix
   4. Poor sensitivity to customer needs
   5. Problems inherent in product
   6. Bad timing
   7. Incongruity with brand
3. New product development process
   1. 1. Idea generation
      1. Customer and supplier suggestions
      2. Employee sugestions
      3. R&D breakthroughs
      4. Competitive products
      5. Universities, inventors, and small technology firms
   2. 2. Idea screening
      1. Is it real?
      2. Can we win?
      3. Is it worth doing?
   3. 3. Concept Development and testing
      1. Most suitable for customers with continuous innovation
      2. For more radical innovations, experts may be used or this stage may even be skipped
   4. 4. Marketing strategy and development
      1. Often includes an analysis of the impact of the product introduction on the company's existing products
   5. 5. Business analysis
      1. To gauge feasibility
   6. 6. Product development
   7. 7. Test marketing
      1. New product with large investment
      2. Uncertainty about product or marketing program
      3. Standard test markets
         1. Advantages -Results are used to -Forecast national sales and profits -Discover product problems -Fine-tune the marketing program
         2. Disadvantages -Costly -Time consuming -Competitors can monitor results -Competitors get early look at your new product
      4. Controlled test markets
         1. Advantages -Less expensive than standard test markets -Faster than standard test markets
         2. Disadvantages -Competitors can monitor results -Competitors get early look at your new product -Limited number of markets may not be representative of overall market
      5. Simulated test markets
         1. Advantages -Provides measure of trial and the effectiveness of promotion -Researchers can interview consumers -Less expensive than other test methods -Faster -Restricts access by competitors
         2. Disadvantages -Not considered as reliable and accurate due to controlled setting
   8. 8. Commercialization
      1. When to launch
      2. Where to launch
      3. Planned market rollout