New Product and Brand Managment: Marketing Engineering Applications (2nd Edition)

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9780130084644: New Product and Brand Managment: Marketing Engineering Applications (2nd Edition)

Focusing on marketing analytics this popular series moves beyond conceptual marketing toward marketing engineering—the use of interactive computer decision models to help support marketing decisions. Hands-on, computer-based exercises and cases bring conceptual marketing alive while introducing the software. All of the software is independent of the cases presented and can be used separately on other case-problems or on real problems. Cases and software include Conglomerate's New PDA, featuring Needs-based Segmentation Using Cluster Analysis, Product Planning Using the GE/McKinsey Approach at Addition Wesley Longman featuring Targeting/Business Prioritization Using GE/McKinsey Approach, Positioning the Infiniti G20 featuring Product Positioning Using Perceptual Mapping, Forte Hotel Design Case featuring Product Design Using Conjoint Analysis, Johnson Wax: Enhance (A) Case featuring New Product Assessment and Forecasting Using the ASSESSOR Model. For New Product Marketing professionals.

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Rapid changes in the marketplace, in data availability, and in the computing environment are transforming the structure and content of the marketing manager's job. As a profession, marketing is evolving so that it is no longer based primarily on conceptual content and, increasingly, senior managers are requiring marketers to provide compelling financial justification for their marketing plans and programs. While many view traditional marketing as an art and some view it as a science, the new marketing increasingly looks like engineering (that is, combining art and science to solve specific problems).

There will always be a central role for marketing concepts. Indeed, to make use of the powerful information tools now available requires sound conceptual grounding. But marketers need more than concepts to fully exploit the resources available to them. They need to move beyond conceptual marketing toward what we call marketing engineering: the use of interactive computer decision modes to help support marketing decisions.

We designed this package of materials to supplement courses in new product development and courses in brand strategy. It includes cases and exercises selected from our book, Marketing Engineering (Prentice Hall, 2003) that are appropriate for such courses. These selections are designed to make the corresponding material in the basic courses come alive.

Each case or exercise here is designed to accompany a specific marketing engineering software application and, if you purchased this book as a requirement for a course, the bulk of your purchase price covers an access fee for the software. You should find that software installed on your school's network.

Although each piece of software has associated with it a corresponding exercise or case problem, most of the software modules (except for Assessor) are completely independent of those cases and can be used separately on other case-problems or on real problems.

According to most new product and brand management texts, the most common analytic problems correspond to segmentation, targeting and positioning, product design and new product forecasting. We have selected the material in this book to meet those needs.

Case 1: Conglomerate's New PDA

Software: Needs-based Segmentation Using Cluster Analysis: This general software tool performs cluster analysis, factor analysis and discriminant analysis. The accompanying case addresses how to segment the market on the basis of needs for a sample of prospective buyers for a new personal digital assistant. The case raises issues such as: (1) How many segments should the firm consider (and how do those segments differ)? (2) Which of those segments should the firm target? (see GE model below). (3) How many different products should the firms offer? (also linked to GE model). (4) How should the new product be positioned? (See Positioning Analysis, below.)

Case 2: Product Planning Using the GE/McKinsey Approach at Addison Wesley Longman

Software: Targeting/Business Prioritization Using GE/McKinsey Approach: This software tool allows the user to build a customized portfolio of SBUs (Strategic Business Units) and associated attribute dimensions and weights to help prioritize the businesses. The accompanying case looks at a portfolio of three new books being introduced at Addison Wesley Longman.

Case 3: Positioning the Infiniti G20

Software: Product Positioning Using Perceptual Mapping: This software tool takes customer perceptions and preferences for products and produces a two- or three-dimensional map that allows the user to view alternative product positions and consider the strategic implications of changes in that positioning. The accompanying case looks at positioning the Infiniti G20: given customer perceptions and preferences for new cars, how should Infiniti position this car in the market?

Case 4: Forte Hotel Design Case

Software: Product Design Using Conjoint Analysis: This software implements the full-profile version of conjoint analysis. The program allows users to (1) construct the conjoint design by specifying new product attributes and options, (2) obtain data from customers for the chosen design, and (3) conduct market simulations using data from customers to determine the product design(s) that will generate the highest market share(s). The accompanying case looks at applying those concepts to the design of a hotel.

Case 5 Johnson Wax: Enhance (A) Case

Software: New Product Assessment and Forecasting using the ASSESSOR Model: The ASSESSOR system is a set of measurement procedures and models designed to help managers assess the market share for new packaged goods before test marketing. Our implementation includes two of the system's core models: the Trial and Repeat model and the Preference model. This implementation has been customized to accompany the Johnson Wax: Enhance (A) case, reprinted here.

Case 6: Zenith High Definition Television (HDTV) Case

New Product Forecasting Using the Generalized Bass Model: The Bass model captures many of the market dynamics associated with the introduction, adoption and early sales trajectory of new products (durable goods in particular) and new technologies. Our implementation includes the original version of the model as well as the generalized Bass model, which includes the effect of advertising and price changes on the sales trajectory of the new product. The model can be calibrated from our library of analogous products or from early sales data. We include a case, Zenith High Definition television (HDTV), where the model can be applied.

The pedagogic philosophy here involves two main principles: learning by doing and end-user modeling. What this means is that the way you will learn these concepts best is to try to apply the software to the problem and make some specific recommendations based on your experience. Thus you learn the concept by doing it yourself—not merely by studying the concept or by assigning the analysis to some staff member or consultant.

This volume contains the problem sets or cases that are keyed to each concept; you can access associated software tutorials at We strongly recommend that you go through each tutorial (making sure you can reproduce the results there) before attempting to "solve" the case. Our experience is that well over 90% of the difficulties users may encounter while running the software are solved by simply reproducing the screens in the respective tutorial. You can get other software hints (e.g., FAQ, Help files) and updates from our Web site as well, and you can also send us your comments and suggestions about the software by using the e-mail facility available at this site.

Note: if you wish to have permanent access to the software associated with this package, as well as to a number of other useful programs, you can view some options at


Your adoption of this book for use in your course includes the delivery of a network version of the Marketing Engineering Modules Software. That software should be installed on your school's computer network by your system administrator. You and your network administrator should see and follow the instructions listed there to obtain and install that software.


This book grew out of the multi-year effort that we have termed Marketing Engineering and represents an evolution 9f our vision to put marketing modeling concepts and tools into more general use.

We gratefully acknowledge the support of the companies that sponsor Penn State's Institute for the Study of Business Markets (ISBM—the book's co-publisher), and the ISBM's Executive Director and Marketing Engineering's chief cheerleader, Ralph Oliva, for the financial and institutional support needed to make this project a continuing reality.

The preface to the first edition of the book paid tribute to the many people whose intellectual contributions and hard work made that edition possible. We redouble our thanks to all who helped make the first edition possible and we single out below those who contributed specifically to this second edition.

While we continue to write portions of the software, we are involved more in design and testing than in actual coding. Our chief software engineer, Andrew "Nuke" Stollak, together with Laurent Miillender and Daniel Soto-Zeevaert wrote most of the new code (and developed the Web site) for the second edition.

Bruce Kaplan and the staff at Prentice Hall continue to nurture this rather unusual project, helping us transform our concepts into physical reality. Ray Liddick provided exceptional production support.

Finally, we offer special thanks to Mary Wyckoff who, once again, supported and managed the whole process. She continues to put up with our unreasonable demands and unrealistic deadlines and does so with unfailing good humor.

Thanks to all!

Gary L. Lilien
Arvind Rangaswamy
January 2002

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Lilien, Gary L.; Rangaswamy, Arvind
Published by Prentice Hall (2002)
ISBN 10: 0130084646 ISBN 13: 9780130084644
New Paperback Quantity Available: 1

Book Description Prentice Hall, 2002. Paperback. Book Condition: New. 2. Bookseller Inventory # DADAX0130084646

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