New product ventures

Improved Creativity. The third need for the decade of the 1970 s will be an improved creativity in the Marketing Research Department. Creativity here means coming up with new ideas concerning existing products and markets rather than creating completely new products. The creativity for new products will be handled also by the Marketing Research Department but under marketing research for new product ventures which is discussed in the next chapter. 

Marketing Research for Planning Development and New Product Ventures... 

Oefore discussing the contributions of marketing research for plan-- - ning development and new product ventures, we should first discuss the changing nature of commercial development and how it is affected by the forces changing the chemical industry. These forces that are changing the industry include ... 

Already during the 1960s we have seen the increase of the need for a more considered approach for planning of development and new product ventures. Let us now turn to the 1970 s to see what are the... 

For every 1,000 raw ideas, only 100 are written up as formal proposals. Only a fraction of those become new product ventures. And over half of our new product ventures fail. Yet, without these dead ends, there would be no innovation. ... 

New chemicals must have time to prove themselves in the marketplace. Often, the true value of an innovation is not known for many years after its introduction. The initial use of a new product is industry s opportunity to appreciate the chemical s properties and explore its potential. A new chemical often initially produced in small quantities, may become a large scale venture after many years with significant and occasionally unanticipated applications. 

Changes in demand, breakthroughs by competing companies, fluctuations in the price or availability of raw materials and faulty original estimates can all cause a product to fail. Such market performance dramatizes the uncertainty of marketing new products. Indeed, experience has shown that about half of new commercial ventures fail. 

There is good reason not to use AWP in country U. Suppose that drug firms in some country are able to earn above-normal rates of return on new products, year in and year out. If monopoly rents are built into AWP there, they should surely be backed out if the analysis is to be done from a true societal perspective. The argument in Gold et al. (1996) that prices must be at least high enough for firms to break even does not preclude the possibility that most ventures do much better than just break even. 

The development of new products for new markets (e.g., electronic chemicals for a fine-chemical company thus far dealing only with life sciences) is the task of corporate development. The latter is a staff function reporting to the CEO. It deals with activities outside the authority of the operating divisions. Apart from new products for new markets, it also looks after joint ventures, mergers and acquisitions, and divestitures. 

Build venture around new products Involved with high-tech companies Desire to innovate... 

Develop the Concept New products New services New processes New markets Joint ventures Partnerships Barter Gifts... 

R d (big R and little d) is product or process research with development only to the level of feasibility studies. Characteristically this work leads to new business ventures. 

M aims to get 25 percent of its revenues from new products, and its venture... 

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