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Chapter 12 - Developing New Products M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1
Instructor’s Manual: Implementation
Guide
This improved Instructor’s Manual (IM) contains more than just summaries of key concepts and features from the
sixth edition of M: Marketing that can be used as springboards for class discussion; it also provides best practices for
how to utilize the full product suite (from the textbook to SmartBook® to Connect®). In addition, this manual
includes a variety of supplemental teaching resources to enhance your ability to create an engaging learning
experience for your students. Regardless of whether you teach in face-to-face traditional classrooms, blended
(flipped) classrooms, online environments, or hybrid formats, you’ll find everything you need in this improved
resource.
The IM follows the order of the textbook outline for each chapter and is divided into sections for each learning
objective. To ease your class preparation time, we’ve included references to relevant PowerPoint slides that can be
shown during class. Note that you can adjust slides as needed to ensure your students stay actively engaged
throughout each session.
AVAILABLE INSTRUCTOR RESOURCES
Within the Instructor Resources Tab, located in the Connect® Library, you will find the following Instructor
Resources:
▪ Instructor’s Manual
▪ PowerPoint Presentations (Accessible)
▪ Test Bank
▪ Author Newsletter Blog
▪ Video Library
▪ Connect Content Matrix
Instructor’s Manual
This Instructor’s Manual is posted by chapter. Within each section of the IM you will find an assortment of feature
summaries, examples, exercises, and Connect® Integration assignments intended to enhance your students’ learning
and engagement.
PowerPoint Presentations
A set of ADA-accessible PowerPoints is available with each chapter and covers:
Chapter 12 - Developing New Products M: Marketing 6th
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McGraw-Hill Education.
2
▪ Chapter Learning Objectives
▪ Key examples
▪ Key exhibits
▪ Key concepts and frameworks
▪ Progress checks
▪ Glossary terms
Some slides include teaching notes to guide your discussion of the content that appears on each slide.
Test Bank
Test Bank questions are posted by chapter. You will find a variety of question types within the test bank such as
Matching, Ranking, Multiple Choice, Select-All-That-Apply, True/False, Short Answer, and Essay to test student
mastery across Bloom’s Taxonomy (i.e., Understand, Apply, and Analyze). Due to the evolving needs around
generating high-quality print test experiences, McGraw-Hill Education provides a free copy of the industry-leading
test generation software TestGen® to users (more details can be found within the Instructor Resources tab under
“Test Bank”). Furthermore, due to its limitations to function with the latest browsers and operating systems,
McGraw-Hill Education has discontinued EZ-Test Online. Some of the robust new features present in TestGen®,
include:
▪ Cross-platform software compatibility with Windows and Mac
▪ Multiple LMS export formats, including Blackboard, Moodle, Desire2Learn, and Sakai
▪ Highly customizable formatting and editing option
Video Library
The Video Library provides links to all the assignable videos in Connect®, as well as legacy videos that are no
longer available as assignments, but that remain available as an additional resource. These videos can be directly
streamed from within the library that is located in the Instructor’s Resource tab. Accompanying each video is a brief
video guide that summarizes the key concepts of the video.
Connect Content Matrix
The Connect Content Matrix provides a brief overview of all the application exercises available in the course. It
lists the Learning Objectives, topic tags, Bloom’s levels, and difficulty levels associated with each exercise.
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
3
Connect®, McGraw-Hill’s online assignment and assessment system, offers a wealth of content for both students
and instructors. Assignable activities include the following:
USING SMARTBOOK® TO ENHANCE STUDENTS’
PERFORMANCE
The LearnSmart®-powered SmartBook® is assignable through Connect. One of the first fully adaptive and
individualized study tools designed for students, it creates for them a personalized learning experience, giving them
the opportunity to practice and challenge their understanding of core marketing concepts. The reporting tools within
SmartBook® show where students are struggling to understand specific concepts.
Typically, SmartBook® is assigned by module (chapter), and you can set which learning objectives to cover as well
as the number of probes the student will see for each assignment. You can also set the number of points a
SmartBook® module is worth in the course. Usually, applying a minimal number of points for completion of each
module is enough to encourage students to read the chapter. Many instructors assign these modules to be completed
before the class or online session.
SmartBook® provides several diagnostic tools for you to gauge which concepts your students struggle to understand.
Below is the set of adaptive assignment reports available in SmartBook®:
▪ Progress Overview: View student progress broken down by module
▪ Student Details: View student progress details plus completion level breakdown for each module
▪ Module Details: View information on how your class performed on each section of their assigned modules
▪ Practice Quiz: This gives you a quick overview of the quizzes results for your students
▪ Missed Questions
▪ Metacognitive Skills
The Module Details report shows you the results for the students in the class overall. These details reveal where in
the chapters students might be struggling. The module gives the chapter section, average time spent, average
questions per student correct/total, and the percentage of correctness (based in number of assigned items).
Information about the most challenging sections for students can help you refine the focus of the next face-to-face,
hybrid, or online session.
The Metacognitive Skills report captures students’ confidence in their competency of the materials. Below you will
find a recreation of the Metacognitive Skills report. In it, you can see that the second student is confident and mostly
correct (see the 91% in the Correct and Aware column) while the first student “doesn’t know what she doesn’t
know” (see the 39% in the Incorrect and Unaware column).
STUDENT
CORRECT
and
AWARE
CORRECT and
UNAWARE
INCORRECT
and
AWARE
INCORRECT and
UNAWARE
Student 1
61%
0%
0%
39%
Student 2
91%
0%
3%
5%
Student 3
81%
0%
0%
19%
Student 4
83%
0%
0%
17%
Student 5
76%
0%
3%
21%
Student 6
66%
0%
9%
25%
Student 7
77%
0%
3%
12%
Chapter 12 - Developing New Products M: Marketing 6th
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Student 8
91%
0%
2%
7%
Student 9
93%
0%
2%
5%
Student 10
70%
0%
6%%
25%
APPLICATION EXERCISES, QUIZZES, AND TEST BANK
Book-level Resources
Application Exercises require students to apply key concepts to close the knowing and doing gap; they provide
instant feedback for the student and progress tracking for the instructor. Before getting into chapter-level
assignments, let’s first look at the book-level assignments available.
Three exercise types are available for instructors to assign beyond the chapter materials. These are 1) Marketing
Plan Prep Exercises, 2) Marketing Analytics Exercises, and 3) Marketing Mini Simulation.
2) Marketing Analytics exercises are data analytics activities that challenge students to make decisions using
3) Marketing Mini Simulation helps students apply and understand the interconnections of elements in the
marketing mix by having them take on the role of Marketing Manager for a backpack manufacturing
company. The simulation can be assigned by topic or in its entirety.
Chapter-level Resources
Chapter-level Application Exercises are built around chapter learning objectives, so you can choose which ones to
assign based on your focus for each specific chapter. Several types of Application Exercises are available in each
chapter. These are 1) iSeeit! Animated Video Cases, 2) Case Analyses, 3) Video Cases, and 4) Click-and-Drag
exercises.
1) The iSeeit! Video series comprises short, contemporary animated videos that provide engaging
introductions to key course concepts. These are perfect for launching lectures and assigning as either pre-
or post-lecture activities. Each animation is accompanied by three to four multiple-choice questions to
check student attention and comprehension.
2) Case Analyses and Video Cases each feature real-world firms and industries different than those discussed
3) Click-and-Drag exercises help students actively demonstrate their understanding of the associated learning
objectives. Some require students to match examples to concepts, to place series of steps in the correct
sequence, or to group examples together under their correct categories.
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Application Exercises can be assigned as preparatory exercises due before class (this is especially good for flipped
classrooms), or after class as concept comprehension checks. Consider assigning two or three Application Exercises
per chapter.
Applications Exercises will generally be assigned as homework or practice as part of the overall class grade. A
general rule of thumb would be to make application exercises worth 5 to 10 points each, since these require more
time and thought than a test bank question might.
To find the Applications in Connect®, go to “Add Assignment” and select “Question Bank.” Within this question
bank will find a drop-down menu of all the book-level assignments and chapter-level assignments. You can then
select the ones you wish to assign.
Chapter-level quizzes and full chapter test banks are also found in the Question Bank’s drop-down menu. Apply a
relatively low value to each question—for example, 1 or 2 points each—since numerous questions are typically
assigned for each chapter. You can decide when to surface the feedback to students. Selecting to display feedback
after the assignment due date helps to prevent cheating; that is, it keeps students from sharing the correct answers
with other students while the questions are still open and available. For this reason, it is suggested that no feedback
to quizzes and test bank exams be made available until after the assignment is due.
ASSIGNING EXERCISES AND GRADING POLICIES: BEST
PRACTICES
To fully utilize the power of the digital components, it is recommended that you assign the SmartBook® reading and
adaptive learning probes before class meets. Application Exercises can be completed either before or after class; if
they are completed before class, they can sometimes serve as good springboards for class discussions. The chapter
quiz makes a good check on comprehension of the material and may work best if assigned after each class period.
The test bank serves as a good resource for building mid-term or final exams.
More detailed information on SmartBook® and Connect® is available through several resources at McGraw-Hill. A
good starting point is your local Learning Technology Representative, who can be found here:
http://www.mheducation.com/highered/platforms/connect/features-educators.html
Connect® gives instructors a wide array of flexibility in making assignments and creating grading policies.
Instructors may choose to:
• assign as many assignments as appropriate given the level and time commitment expected for the class,
• determine point values for each question/application that works within the total course percentages,
• make available multiple attempts per assignment with options of accepting the highest score or averaging all the
attempts together (several attempts are particularly good for homework assignments),
• deduct points for late assignment submissions (percentage deduction per hour/day/week/etc.) or create hard
deadlines thus accepting no late submissions,
• show feedback on application/questions immediately upon submission or at the time the assignment is due for
the whole class, create new assignments or questions from scratch, or edited versions from a variety of provided
resources.
Throughout the IM for each chapter, we integrate materials from the PowerPoint slides and provide summaries for
each of the Connect® Application Exercises at the end of each chapter. These summaries are intended to give you a
Chapter 12 - Developing New Products M: Marketing 6th
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sense of the learning goal behind each exercise. We hope this integration of resources will help you to convey core
principles of marketing topics holistically, effectively, and efficiently to your students.
Chapter 12 - Developing New Products M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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Chapter 12
Developing New Products
Tools for Instructors
• Chapter Overview
• Brief Chapter Outline
• Learning Objectives
• Extended Chapter Outline
• PowerPoint Slides
• Additional Resources
• Connect Application Exercises
Chapter Overview
This chapter focuses on the ways that a firm can create value through innovation. Students learn about
the product life cycle, the importance of product differentiation, as well as concepts unique to new product
development and launch.
Brief Chapter Outline
Why Do Firms Create New Products?
Diffusion of Innovation
How Firms Develop New Products
The Product Life Cycle
Learning Objectives
LO12-1 Identify the reasons firms create new products.
Firms need to innovate to respond to changing customer needs, prevent declines in sales from market
LO12-2 Describe the different groups of adopters articulated by the diffusion of innovation theory.
The diffusion of innovation theory can help firms predict which types of customers will buy their products
or services immediately upon introduction, as well as later as they gain more acceptance in the market.
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McGraw-Hill Education.
8
LO12-3 Describe the various stages involved in developing a new product or service.
When firms develop new products, they go through several steps. First, they generate ideas for the
product or service using several alternative techniques, such as internal research and development, R&D
LO12-4 Explain the product life cycle.
The product life cycle helps firms make marketing mix decisions on the basis of the product’s stage in its
Extended Chapter Outline
I. Why Do Firms Create New Products? (PPT 12-04)
A. Changing Customer Needs
B. Market Saturation
C. Managing Risk through Diversity
D. Fashion Cycles
Adding Value 12.1: No Fairy Godmother Needed: How Disney Is Leveraging Its Inventory of
Animated Films to Develop New Live-Action Productions explains how new versions of familiar titles
also can be a powerful means to prompt consumers to purchase: Having loved the cartoon version of
Cinderella as small children, teens and adults might find a new product prompted by a new live-action
movie of substantial interest. Can students think of another industry that utilizes similar tactics?
E. Improving Business Relationships
✓
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the reasons firms innovate?
II. Diffusion of Innovation (PPT 12-06, 12-07)
A. Innovators
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Ethical & Societal Dilemma 12.1: Drones in the Sky, Questions on the Ground discusses the use of
drones, one of the hottest new products on the market. Do students think drones pose a threat to
privacy? What could a marketer do to persuade consumers that drones aren’t a threat?
B. Early Adopters
C. Early Majority
D. Late Majority
E. Laggards
F. Using the Diffusion of Innovation Theory (PPT 12-09)
1. Relative Advantage
3. Observability
4. Complexity and Trialability
✓
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the five groups on the diffusion of innovation curve?
2. What factors enhance the diffusion of a good or service?
III. How Firms Develop New Products (PPT 12-11)
A. Idea Generation (PPT 12-12)
1. Internal Research and Development (PPT 12-13)
Marketing Analytics 12.1: Data That Help the Brand and the Customer: GM’s Big Data Use explains
how General Motors is leveraging the data it gathers from customers as a sort of internal research source
to support its designs. Can students think of any problems collecting this type of data might cause?
3. Licensing (PPT 12-15)
5. Outsourcing (PPT 12-17)
7. Customer Input (PPT 12-19)
B. Concept Testing (PPT 12-20)
C. Product Development (PPT 12-21)
D. Market Testing (PPT 12-22, 12-23)
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1. Premarket Tests (PPT 12-22)
2. Test Marketing (PPT 12-22)
E. Product Launch (PPT 12-24, 12-25)
Adding Value 12.2: To Get People to Try a New Product, Goodness Knows Encourages Them to
Try Something New discusses the marketing and advertising campaign for Goodness Knows, a new
healthy snack bar from Mars, Incorporated. Ask students if they have tried any new products recently.
What motivated them to try the new product?
1. What are the steps in the new product development process?
2. Identify different sources of new product ideas.
IV. The Product Life Cycle (PPT 12-28, 12-29)
A. Introduction Stage (PPT 12-30)
B. Growth Stage (PPT 12-31)
Adding Value 12.3: Skinny on Ingredients, Thick on Promise: The Growth of SkinnyPop Snacks
outlines how a couple of entrepreneurs had to take a trial-and-error approach before they ultimately found
the segment of the popcorn market that would allow their SkinnyPop brand to grow massively and
quickly. How did the target market for Wells Street Popcorn’s new product differ from the target market for
their original brand?
C. Maturity Stage (PPT 12-32)
1. Entry into New Markets or Market Segments
2. Development of New Products
D. Decline Stage (PPT 12-33)
E. The Shape of the Product Life Cycle Curve
F. Strategies Based on Product Life Cycle: Some Caveats (PPT 12-35)
✓
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What are the key marketing characteristics of products or services at each stage of the product
life cycle?
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2. Why might placement decisions for products or services into stages of the product life cycle
become a self-fulfilling prophecy?
Answer: If a product experiences several seasons of declining sales, a manager may determine
Additional Resources
The way to truly understand new product development is to have students work in teams to create a
new product. Students can work in teams of 5 to brainstorm and come up with ideas of new products.
Instructors need to put some boundaries on the assignment such as it can’t be too far-fetched (such as
self-driving automobiles) and the product should have enough differentiation (not just an added
ingredient to an energy bar). If students get stumped, suggest that they think of a current product and
then think of a way to make it better or to solve a problem (such as unbreakable holiday lights or lights
where the bulb never burns out). Then have students make an illustration of the product and address the
phases of the new product development. Students can present their findings to the class.
Another way to get students involved is to have them research organizations to discover how new
products were made. 3M Post-its were made by mistake when a glue did not bond. An employee used it
to mark pages in a hymnal so he wouldn’t lose the page and it could be easily removed without damage.
Have students share their findings with the class. Online tip: This same assignment can take the form of
a posting in which students present their findings via the discussion board in the online forum. Students
can then respond to other learners by commenting on their “new product” and making suggestions.
The key to student comprehension of new product design is to involve the student in new product
development to use their critical thinking skills to think about each of the phases of new product
development as well as the elements of the marketing mix to bring the product to market. Instructors may
want to assign new product development as part of a Marketing Plan where students need to develop a
new product and incorporate all elements of the marketing plan for a cumulative course project. Of
course, new product development phases would be addressed as part of the plan.
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12
Connect Application Exercises
This section summarizes each Application Exercise available with this chapter. Each summary comprises
an introduction to the exercise, concept review, and follow-up activity. Associated details related to the
learning objectives, activity type, AASCB category, and difficulty levels are also included. These
summaries are intended to guide your course planning; perhaps you want to assign these exercises as
homework or practice, before or after class. For best practices on how and when to assign these
exercises, see the IM Implementation Guide at the beginning of this chapter.
Activity
Type
Learning Objectives 12-
01
02
03
04
Stages of the Product Life Cycle
Click & Drag
X
The Product Development Process
Click & Drag
X
Sara Lee: Developing a New Product
Video Case
X
X
X
You Be the Judge: Click Here, Be Sued
Video Case
X
X
X
Diffusion of Innovation
Click & Drag
X
New Product Development at Red Mango
Video Case
X
X
The Launch, Death, and Potential Reemergence of
Google Glass
Case Analysis
X
X
X
ISeeIt Video Case: New Product Development
Video Case
X
Stages of the Product Life Cycle
▪ Activity Type: Click & Drag
▪ Learning Objectives: 12-04
▪ Difficulty: Medium
▪ Activity Summary: The student matches market characteristics and consumer profiles to the stages
of the product life cycle.
Activity
▪ Introduction: During each stage of a product's life cycle, the types and levels of sales, profits, and
competition rise, peak, and eventually decline. Categorize the following statements by the market
attributes and consumer types that characterize each product life cycle stage.
▪ Concept Review: The product life cycle defines the stages that new products move through as they
enter, are established in, and ultimately leave the marketplace. In their life cycles, products pass
through four stages: introduction, growth, maturity, and decline. The product life cycle offers a useful
tool for managers to analyze the types of strategies that may be required over the life of their
products. Even the strategic emphasis of a firm and its marketing mix (4Ps) strategies can be
adapted from insights about the characteristics of each stage of the cycle.
The student is presented with information on both market characteristics and consumer profiles for a set
of situations, and is asked to match each of these scenarios to one of the four product life cycle stages.
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Follow-Up Activity
Internet research challenge: Ask students to investigate the sales growth pattern in the tablet market,
using the most current data they can find, and identify the PLC stage in which the tablet market currently
sits.
The Product Development Process
▪ Activity Type: Click & Drag
▪ Learning Objectives: 12-03
▪ Difficulty: Medium
▪ Activity Summary: Students apply the product development process to the description of the
development of a hypothetical technology product.
Activity
▪ Introduction: In this example, a hypothetical computer accessories company called ElectroCompt
creates a product to enhance users' experience with the Apple iPod. The SuperChargeIn is a slim
protective sleeve with a battery-operated charger built in so iPod users never run out of charge when
they are on the go. Read about how the hypothetical product SuperChargeIn was conceived and
delivered to market and then organize the product development process as instructed.
▪ Concept Review: New goods and services keep current customers coming back for more and draw
new customers into the market. Broad product assortments also help to diversify the firm's portfolio,
thus lowering its overall risk and enhancing its value. Although they carry significant risk, new-to-the-
world products have tremendous potential because they offer something that has never before been
available.
Students are asked to match a set of product development activities to the stages of the product
development process.
Sara Lee: Developing a New Product
▪ Activity Type: Video Case
▪ Learning Objectives: 12-01, 12-03, 12-04
▪ Difficulty: Medium
▪ Activity Summary: This case discusses the product development process for a new type of bread
with some whole grain but the taste and appearance of white bread. After the video ends, students
are asked questions about the video and related course concepts.
Activity
▪ Introduction: The following video features the Sara Lee brand, which is known around the world.
One of the strategies Sara Lee uses to keep its brand fresh and diversified is innovative product
development.
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▪ Concept Review: New goods and services keep current customers coming back for more and draw
new customers into the market. Multiple products also help to diversify the firm's portfolio. To
generate ideas for new products, a firm can use its own internal research and development (R&D)
efforts, collaborate with other firms and institutions, license technology from research-intensive firms,
brainstorm, research competitors' products and services, and/or conduct consumer research.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activities
For an interesting follow-up to this case, assign this article to be read outside of class, or discuss it in
class:
http://www.cspinet.org/new/200807212.html
Sara Lee was threatened with a lawsuit following the introduction of the bread discussed in the video
case; consumer protection groups felt that the name and packaging were misleading, suggesting that the
bread contained more whole grains than it actually did.
You Be the Judge: Click Here, Be Sued
▪ Activity Type: Video Case
▪ Learning Objectives: 12-01, 12-02, 12-04
▪ Difficulty: Medium
▪ Activity Summary: An excerpt from a fictionalized trial dealing with an allegation of misappropriation
of an innovative idea. After the video ends, students are asked questions about the video and related
course concepts.
Activity
▪ Introduction: In this You Be the Judge business law case, Ms. Garner argues that she developed an
innovative process for one-click shoe shopping for her Dazzletoes website, and that Flights of Fancy
has copied it unfairly. Mr. Higgins counters that he's been using the same customer service process
for years in his brick and mortar store and is entitled to continue its use online.
▪ Concept Review: Innovation is the process by which ideas are transformed into new goods and
services that will help firms grow. Without innovation, firms would have only two choices: to continue
to market current products to current customers, or to take the same products to other markets with
similar customers. Although innovation strategies may not work in the short run, long-term
considerations compel firms to introduce new goods and services.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
Class discussion: This fictional trial video is incomplete in that an infringement lawsuit would require lots
of information and testimony not shown here. But regardless of that, ask the students, if they were the
judges, how they would decide. Of the testimony shown in the video, which factors are important to the
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15
decision? What else would they want to know? This is also a place where, if you want, you can briefly
expand on what the text says about patent protection.
Diffusion of Innovation
▪ Activity Type: Click & Drag
▪ Learning Objectives: 12-02
▪ Difficulty: Medium
▪ Activity Summary: The student identifies products being adopted by each of the adopter groups
discussed in diffusion of innovation theory.
Activity
▪ Introduction: There are certain products that can be associated with users in each stage of the
diffusion of innovation curve. Match each product with the consumer type for each stage of diffusion.
▪ Concept Review: The process by which the use of an innovation—whether a product, a service, or a
process—spreads throughout a market group, over time and across various categories of adopters, is
referred to as diffusion of innovation. The theory surrounding diffusion of innovation helps marketers
understand the rate at which consumers are likely to adopt a new product or service. It also gives
them a means to identify potential markets for their new products or services and predict their
potential sales, even before they introduce the innovations.
Students are asked to identify the adopter group most likely to adopt particular products described in the
activity.
Follow-Up Activity
In small groups, ask students to assess a product that has diffused very quickly, and one that is diffusing
slowly, and assess the reasons, using the factors that affect speed of diffusion (relative advantage,
complexity, trialability, observability, compatibility). The products listed in the exercise can be used for this
(for example, iPod vs. electric car), or others can be chosen.
New Product Development at Red Mango
▪ Activity Type: Video Case
▪ Learning Objectives: 12-01, 12-03
▪ Difficulty: Medium
▪ Activity Summary: This video explores how new product development happens at Red Mango, a
frozen yogurt chain. After the video ends, students are asked questions about the video and related
course concepts.
Activity
▪ Introduction: Founded in 2007 by Dan Kim, Red Mango originally sold frozen yogurt. Its first shop
was in Los Angeles. Success with its frozen yogurt resulted in rapid expansion for the firm. There are
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16
currently more than 200 Red Mango locations in 28 states and two Central American countries. Since
2007, Red Mango has developed many successful new products, including parfaits, fruit smoothies,
and, more recently, blended iced coffee. The accompanying video will illustrate how Red Mango
followed the new product development process to launch its blended iced coffee.
▪ Concept Review: It is almost a requirement today that firms innovate and develop new products.
Customer needs change, markets become saturated, and fashion trends evolve. For these and other
reasons, growth would be very difficult for companies without innovation resulting in new products.
The new product development process typically follows a series of stages. First, new product ideas
must be generated from a variety of sources. Next, these product ideas are turned into concepts that
are tested on consumers. If the concept test is successful, a prototype is manufactured and tested
during the product development stage. Next, some firms choose to test market—they release the
actual product in a limited geographic area to test the market potential. The last two stages are the
actual product launch, followed by evaluation of the results. This evaluation is ongoing because
products must be carefully managed throughout their life cycle.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
The Launch, Death, and Potential Reemergence of Google Glass
▪ Activity Type: Case Analysis
▪ Learning Objectives: 12-01, 12-02, 12-04
▪ Difficulty: Medium
▪ Activity Summary: The short case describes the history of Google Glass, reflecting on what worked,
what didn’t, and what might happen in the future.
Activity
▪ Introduction: Google Glass, Google’s first entry into the wearable technology market, had a limited
and unexpectedly brief introduction to the market. This activity is important because new product
development is a challenging area of marketing—and business in general—but is essential to a firm’s
long-term survival. The goal of this activity is to apply new product development concepts and
frameworks to Google’s experience with Glass.
After reading the case, the student is asked to answer questions about the information presented.
ISeeIt Video Case: New Product Development
▪ Activity Type: Video Case
▪ Learning Objectives: 12-03
▪ Difficulty: Easy
▪ Activity Summary: This video case considers the stages of the new product development process
for a potential flavor additive for a bottled water company.
Chapter 12 - Developing New Products M: Marketing 6th
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
17
Activity
▪ Introduction: To develop new products and services efficiently, organizations go through a process
to ensure that their products are ready for market. This process is meant to evaluate interest in a
product and helps to increase the chances of success within the marketplace. Hope Springs Water
Co. is using this process to identify opportunities to develop new complementary offerings to its
bottled water. As Ju Li and her marketing team look for product-expansion opportunities, they are
approached by a supplier who would like them to distribute a natural flavoring additive. Before they
agree to distribute the new product, they need to ensure interest within the marketplace and that
preliminary sales data support an expensive national launch. By using the new-product development
process, Hope Springs can make decisions on hard data and a structured process instead of
guessing whether this new additive will be successful within the marketplace.
▪ Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
