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The New Product Development Process

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The New Product Development Process Class 6 Design and Branding Development: Product Design Consumer Response to Product Form (Adapted from Bloch 1995) What Is Design? – PowerPoint PPT presentation

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Title: The New Product Development Process


1
The New Product Development Process
  • Class 6
  • Design and Branding

2
Development Product Design
3
(No Transcript)
4
Consumer Response to Product Form (Adapted from
Bloch 1995)
Psychological Responses to Product Form
Product Form
Behavioral Responses
  • Cognitive
  • Evaluations
  • Categorization
  • Beliefs
  • Emotional
  • Evaluations
  • Aesthetics

5
What Is Design?
  • Has been defined as the synthesis of technology
    and human needs into manufacturable products.
  • In practice, design can mean many things, ranging
    from styling to ergonomics to setting final
    product specifications.
  • Design has been successfully used in a variety of
    ways to help achieve new product objectives.
  • One thing it is not prettying up a product
    that is about to manufactured!

6
Contributions of Design to the New Products
Process
7
Range of Leading Design Applications
  • Purpose of Design
  • Aesthetics
  • Ergonomics
  • Function
  • Manufacturability
  • Servicing
  • Disassembly
  • Item Being Designed
  • Goods
  • Services
  • Architecture
  • Graphic arts
  • Offices
  • Packages

8
Assessment Factors for an Industrial Design
9
What is Product Form?
  • Objective Physical Properties of a Product
  • Form
  • Structure
  • Texture
  • Color

10
Psychological Responses to Consumer Products
  • Context
  • Category Membership
  • Functionality
  • What happens in the absence of context?
  • Design communicates, but does it do so
    effectively?
  • How does the design and its context influence
  • Consumers reactions to the new products
  • Consumers communication strategies

11
What Does the Design Tell You?
12
What Does the Design Tell You?
13
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14
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15
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16
Perceived Product Newness
17
Why does perceived newness matter?
  • Correlation between perceived newness and
    product evaluation .43 (p lt .0001)

18
How Do Consumers Communicate Design?
  • Categorization
  • Marketers must proactively consider how they
    want consumers to categorize a product rather
    than leaving it to chance. - Bloch 1995
  • Analogies
  • Tendency to describe the novel in terms of the
    known
  • Looks like vs. Works like

19
Alternative Interpretations
Foot Massager Heater Bathroom Scale Lawnmower Toy
Slide Projector Record Machine CD Player Sony
Boom Box Face Massager Hot Pot Computer
Peripheral Grill
MP3 Player Optometrists Tool Video Recorder
20
Alternative Interpretations
Razor Medical Device Massage Tool Computer
Mouse Tape Recorder Facial Scrubber Mini-massage
r Lip Shaver Medical Device Foot Buffer Blood
Pressure Tester Arm Pit Odor Remover
Portable Heater Mini Oven Humidifier
21
Analogies Used
Frisbee UFO Salad Bowl Decoy in a Science Fiction
Movie Yo-Yo Pizza
Pen Can Opener Pencil Microphone Video
Recorder James Bond device Chocolate Bar Flash
Light Fold-Up Fan TV Remote Control
22
Analogies Used
Hockey Stick Scanner
Fish Tank Scanner
23
Branding
24
The Value of a Strong Brand
  • Brand equity has just as much effect on stock
    price as do earnings.
  • David Aaker
  • Professor of Marketing, Emeritus
  • University of California, Berkeley

25
Build the Brand
  • Now more than ever, companies see the power of a
    strong brand. At a time when battered investors,
    customers and employees are questioning whom they
    can trust, the ability of a familiar brand to
    deliver proven value flows straight to the bottom
    line.
  • a strong brand, even in bad times, can allow
    companies to command premium prices.
  • a strong brand also can open the door when
    growth depends on breaking into new markets.
  • The Best Global Brands, Business Week, August
    5, 2002

26
What is a Brand?
A brand is a name, term, sign, symbol, or
design, or a combination of them intended to
identify the goods and services of one seller or
group of sellers and to differentiate them from
those of competition. Source American
Marketing Association
A product is something that is made in a factory
a brand is something that is bought by a
customer. A product can be copied by a
competitor, a brand is unique. A product can be
quickly outdated a successful brand is
timeless. Source Stephen King, WPP Group,
London A brand is something that resides in the
minds of consumer.
27
What is a Brand?
Symbol
Term
Identifies product/service of seller
and differentiates from competitors
Design
Name
Combination
Sign
Keller, Kevin Lane. Strategic Brand Management
Building, Measuring, and Managing Brand Equity.
1998.
28
Importance of a Brand
The marketing battle will be a battle of brands,
a competition for brand dominance. Businesses
and investors will recognize brands as the
companys most valuable assets. This is a
critical concept. It is a vision about how to
develop, strengthen, defend, and manage a
business It will be more important to own
markets than to own factories. The only way to
own markets is to own market-dominant brands.
Source Larry Light, Journal of Advertising
Research
29
Benefits of Brands
  • Consumers
  • Identification of the source of product
  • Assignment of responsibility to product maker
  • Risk reducer
  • Search cost reducer
  • Promise, bond, or pact with maker of product
  • Symbolic device
  • Signal of quality

30
Benefits of Brands (cont.)
  • Manufacturers
  • Means of identification to simplify handling or
    tracing
  • Means of legally protecting unique features
  • Signal of quality level to satisfied customers
  • Means of endowing products with unique
    associations
  • Source of competitive advantage
  • Source of financial returns

31
A Brand is More Than a Product
Organizational associations
Brand
Symbols
Brand Personality
Country of origin
Scope Attributes Uses Quality/value Functional
benefits
Product
Brand/customer relationships
User Imagery
Self-expressive benefits
Emotional benefits
32
What is Brand Equity?
What distinguishes a brand from its unbranded
commodity counterpart and gives it equity is the
sum total of consumers perceptions and feelings
about the products attributes and how they
perform, about the brand name and what it stands
for, and about the company associated with the
brand. Source Alvin A. Achenbaum, The
Mismanagement of Brand Equity, 1993
33
Brand Equity as a Percent of Firm Tangible Assets
  • Industry Brand Equity
  • Apparel 61
  • Tobacco 46
  • Food Products 37
  • Chemicals 34
  • Electric machinery 22
  • Transportation 20
  • Primary metals 01

34
Picking Stocks
Suppose that you will be given 0.1 percent of the
stock on one of the following companies. Which
firms stock would you prefer, given the
following information?
Sales Assets Profits
General Motors 166B 229B 7B Coca-Cola 19B 1
7B 4B
35
Building Brand Equity
  • Getting awareness of the brand and the meaning.
  • Making brand associations
  • Building perceived quality
  • Loyalty in repurchase -- locking them in
  • Getting reseller support

36
What is Brand Equity?
Perceived Brand Quality
Brand Associations Personality Benefits
Attitudes
  • Brand
  • Awareness
  • Brand Name
  • Symbols
  • Other
  • Proprietary
  • Brand Assets
  • Patents
  • Trademarks
  • Channel relationships

Brand Equity
Brand Loyalty
  • Provides Value to Firm by Enhancing
  • Efficiency and Effectiveness of Marketing
    Programs
  • Brand Loyalty
  • Prices/margins
  • Brand extensions
  • Trade Leverage
  • Competitive Advantage

Provides Value to Customer by Enhancing
Interpretation/processing of information
Confidence in the Purchase Decision Use
Satisfaction
Source Aaker (1991) Managing Brand Equity
37
Brand Loyalty
  • Ultimate test
  • Realistic test

38
Brand Awareness
  • Brand Awareness
  • Measurement

39
Brand Associations
  • Brand Associations
  • Strength of Brand Associations
  • Favorability of Brand Associations
  • Uniqueness of Brand Associations
  • Brand Personality

40
Dimensions of Brand Personality
41
Brand personality
  • Describe the personality of the following
  • Arizona Iced Tea
  • Intel
  • Blockbuster Video
  • Wal-Mart
  • Toyota
  • Dr. Pepper
  • Aquafina
  • Seiko
  • Texas Instruments
  • Nordstroms

42
Brand personality
  • What personality characteristics come to mind for
    the following
  • Brand is repositioned several times or changes
    its slogan repeatedly
  • Brand uses continuing character in its
    advertising
  • Brand charges a high price and uses exclusive
    distribution
  • Brand frequently available on deal
  • Brand offers many line extensions
  • Brand sponsors show on PBS or uses recycled
    materials
  • Brand features easy-to-use packaging or speaks at
    consumers level in advertising
  • Brand offers seasonal clearance sale
  • Brand offers five-year warranty or free customer
    hot line

43
The Personality-like Associations of Selected
Colors
44
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45
Three Keys to Brand Equity
  • Brand knowledge
  • Network of nodes and connecting links
  • Brand Awareness
  • Depth Recall, Recognition
  • BreathPurchase consumption
  • Brand image
  • Brand associations held in memory

Consumer response to marketing
  • Differential Effects
  • Preferenceschoice of brand
  • Actions to sales promotions
  • Evaluations to brand extensions

46
Why Extend a Brand?
  • Immediate brand awareness
  • Transfer existing associations
  • Faster trial
  • Reinforce core brand

47
Why Not Extend a Brand?
  • Boomerang potential
  • Dilution
  • Bad fit

48
Questions and Guidelines in Brand Name Selection
49
Some Brand Names That Didnt Work
Crapsy Fruit French cereal Fduhy Sesane
China Airlines snack food Mukk
Italian yogurt Pschitt French
lemonade Atum Bom Portuguese
tuna Happy End German toilet
paper Pocari Sweat Japanese sport
drink Zit German
lemonade Creap Japanese coffee
creamer I'm Dripper Japanese instant
coffee Polio Czech laundry
detergent Sit Smile Thai toilet
paper Barf Iranian laundry detergent
50
How Brand Equity Provides Value
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