Transcript Developing and Launching New Offerings – Chapter 14 (part 1)

Developing and Launching
New Offerings – Chapter 14
(part 1)
Chris Freeman
PADM 7040
Background
Aggressive competition among non-profits leads to
possibility that the organization becomes obsolete.
“A well-managed organization cannot survive merely
on chance or insight. New offerings must continually
be generated” (Andreasen & Kotler, 2003, p. 350).
A system for the generation of new offerings must be
put in place.
(Andreasen & Kotler, 2003)
Offer Development
Several strategies exist for offer development:

“Playing it safe”
 Sell existing offerings to new markets

“Building on what works”
 New, similar offerings sold to new and existing markets

“Branching out”
 Move the organization in new directions and into new
markets
(Andreasen & Kotler, 2003)
Mission Creep
“While it is important…to evaluate new
ideas…to keep the organization
growing…there is the real danger that
projects…are not good fits for organizations”
(Andreasen & Kotler, 2003, p.353)
.
Mission creep leads to need for new staff and
skills not “in synergy” with organization.

Loss of focus is unappealing to potential donors
Ask often: “Is [the new program] consistent
with the mission?”
.
(Andreasen & Kotler, 2003, p.353)
(Andreasen & Kotler, 2003)
The Development Process
1.
2.
3.
4.
5.
6.
7.
8.
9.
Idea generation
Idea screening
Concept development and testing
Marketing strategy formulation
Business analysis
Offer development
Market testing
Commercialization
Launch
(Andreasen & Kotler, 2003, p.354)
Idea Generation
Don’t rely on chance or past,
successful concepts:
1.
2.
3.
4.
Commit to systematic development process
Designate organizational development leader
Formalize the process
Encourage creativity
(Andreasen & Kotler, 2003)
Idea Screening
Not all ideas are good but it’s less
costly to drop a good one than to
develop a poor one. Screening is vital.
1.
2.
3.
Develop a screening committee and meet often
Have formal, baseline criteria and “weight” each
criterion
Be prepared for meetings to judge each idea
objectively
(Andreasen & Kotler, 2003)
Development and Testing
Grow ideas into marketable concepts:


One, generic idea can take many potential forms
Create a marketable image
Test the image through market research:


Surveys
Conjoint analysis
(Andreasen & Kotler, 2003)
Marketing Strategy
Formulation
Develop an offering’s marketing
strategy focusing on:



Structure, intended positioning, and shortterm/impact goals
Intended price, distribution strategy, and
marketing budget
Long-term goals and marketing mix strategy
(Andreasen & Kotler, 2003)
Business Analysis
Carefully estimate offering costs and
revenues.
Use realistic hypotheticals to gauge
financial feasibility of offering.
(Andreasen & Kotler, 2003)
Offer Development & Market
Testing
Develop real marketing campaign
materials and test on consumers.
Introduce the offering in “authentic
consumer setting”
and
gauge response.
(Andreasen & Kotler, 2003, p.361)

Provides insight into both project feasibility and
best marketing strategies.
(Andreasen & Kotler, 2003)
Commercialization
Before launching new program, ask:
1.
2.
3.
4.
When?
Where?
To whom?
How?
Assign organizational responsibility.
Develop formal schedule of
marketing tasks.
(Andreasen & Kotler, 2003)