Improving Marketing's Contribution to New Product Development
Introduction
NPD - New Project Development
Identify Customer Need
that new product failure rates are still high1 due to a flawed understanding of consumer preferences and market needs
Marketing Department
Knowledge about specific capabilities that improve the marketing department’s contribution to NP
Relationship between marketing capabilities and innovation performance
Then whether these capabilities help the marketing department strengthen its position and influence within the NPD process
First identifies marketing capabilities that are relevant for NPD
Evidence that firms with strong marketing departments are more successful with their new products.
Conceptual Model
Marketing in the NPD Process
Are to identify and understand customer needs and to assess the market potential of new product ideas
Conducts marketing research because managers expect the resulting information to minimize uncertainty when making important decisions in areas such as NPD
Knowledge-Based Marketing Capabilities
Innovation Performance (IP)
Technical skills (TS)
Knowledge about marketing and geenral management (MK)
Marketing'sInfluence on NP
Innovartion Performance (IP)
Business Performance (BP)
Decision Influence
Initiated NPD projects (MI2)
Provide knowledge and skills that connect the customer to productdesign,functionalities,andqualityissues.
help reduce the number of products that fail to satisfy market needs
to support management in detailed business analyses concerning decisions such as the selection of the most promising new product ideas
Model Results
The study assesses the relationship between the three marketing capabilities and the two marketing influence measures (MI1 and MI2).
Marketing Capabilities and Innovation Performance
The Impact of Marketing Capabilities on the Marketing Department’s Influence on NPD
The Mediating Role of Marketing’s D
Innovation Performance and Business Performance
The quality of marketing research and the capability to translate customer needs into technical product specifications positively contribute to both marketing influence measures
These capabilities enable the marketing department to influence NPD by initiating NPD projects
Having CEOs with marketing backgroundspositively affects the influence of marketing on NPD decision making
The most important marketing capability is Marketing Research, which has a significant positive effect on innovation performance
Decision influence of MK has a strong positive significant effect on innovation performance
There is no direct effect of marketing’s TSkills on innovation performance
To fully understand the magnitude of marketing capabilities’ contribution to innovation performance and the role of the marketing department’s influence, the indirect effects are computed to assess the type of mediation.
Innovation performance significantly improves overall business performance
The fit between the generic strategy and its implementation is more important than the chosen strategy