ObjectivesChallengesinNewProductDevelopment(NPD)OrganizationalStructure&NPDStages&ManagementofNPDDiffusion&AdoptionofNewProductsWhyNewProductsFail“OverChampioning”OverestimatedDemandPoorDesignPoorMarketingExecutionHighDevelopmentCostsStrongCompetitiveReactionChallengesinNPDIdeaShortageFragmentedMarketsSocial&GovernmentalConstraintsCostCapitalShortageNeedforSpeedShorterProductLifeCyclesProbabilityofSuccessProbabilityoftechnicalcompletionOverallprobabilityofsuccess=ProbabilityofcommercializationgiventechnicalcompletionXProbabilityofeconomicsuccessgivencommercializationXConceptDevelopment&Testing1.DevelopProductIdeasintoAlternativeProductConcepts2.ConceptTesting-TesttheProductConceptswithGroupsofTargetCustomers3.ChoosetheBestOneConsumer-GoodsMarketTestingSales-WaveResearchTestofferingtrailtoasampleofconsumersinsuccessiveperiods.SimulatedTestMarketTestinasimulatedshoppingenvironmenttoasampleofconsumers.StandardTestMarketFullmarketingcampaigninasmallnumberofrepresentativecities.ControlledTestMarketAfewstoresthathaveagreedtocarrynewproductsforafee.CommercializationWhenWhereWhomProductPricePlacePromotionCharacteristicsoftheInnovationRateofAdoptionRelativeadvantageCompatibilityComplexityDivisibilityCommunicability