Another way to look at new products is through one of strategic planning’s most useful analytical devices – an array of future options or alternative such as that shown in figure 1.1.
The Technology / Market Matrix
Another way to look at new
products is through one of strategic planning’s most useful analytical devices –
an array of future options or alternative such as that shown in figure 1.1, A
firm has roughly four way to gain new business – see quadrants A, B, C and D in
the figure 13.1
Product improvement This is the easiest strategy –
selling more of the product line to current customers. This involves product
improvement, smarter marketing and increasing market shares. New products
management plays a minor role and the activity is often called market
development, not product development.
Extension It involves capitalizing on the
firm’s current strengths. If the strengths is franchise with a particular
customer group, quadrant B’s strategy is to develop more product t sell to
them. Such products don’t have to be unique because the
franchise will help sell them.
New use and market extensions This is suitable when the firm’s
strength is technology –something the firm known or does especially well. Example
are coca-cola’s bottling system. Coming’s glass skills and Hewlett packand’s
electronics capabilities. Such firms try to develop new
products that exploit their technology.
Diversification It involves leaving both the firm’s
customer base and its technology base. This high-risk strategy should be used
only under special circumstances. The new products may come by acquisition
rather than through internal product development. DCM’S entry into the LCV market fits into this category.
Tags : MARKETING MANAGEMENT - New Products Development Strategies
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