Research Insights 8.1 Marketing/R&D

New Proposition Development and Innovation

Source: Hise, R.T.; O'Neal, L.; Parasuraman, A.; and McNeal, J.U. (1990). Marketing/R&D interaction in new product development: implications for new product success rates. Journal of Product Innovation Management7(2), 142-55.

Abstract: A growing body of literature has evolved which deals with the interaction between marketing and R&D in new product development. Much of this research, unfortunately, fails to associate various variables with new product success levels. Thus, it cannot suggest consensus guidelines for marketing's involvement to increase the performance levels of new products in the market place. Richard Hise, Larry O'Neal, A. Parasuraman and James McNeal report results of their analysis of the new product development procedures of 252 large manufacturing companies. The authors conclude that collaborative efforts between marketing and R&D during the actual designing of new products appear to be a key factor in explaining the success levels of new products, that management effort should focus on the design stage of the new product development process rather than on the earlier and later stages and that R&D's contributions cannot be ignored while decisions are made about marketing's role in developing new consumer and industrial products.A growing body of literature has evolved which deals with the interaction between marketing and R&D in new product development. Much of this research, unfortunately, fails to associate various variables with new product success levels. Thus, it cannot suggest consensus guidelines for marketing's involvement to increase the performance levels of new products in the market place. Richard Hise, Larry O'Neal, A. Parasuraman and James McNeal report results of their analysis of the new product development procedures of 252 large manufacturing companies. The authors conclude that collaborative efforts between marketing and R&D during the actual designing of new products appear to be a key factor in explaining the success levels of new products, that management effort should focus on the design stage of the new product development process rather than on the earlier and later stages and that R&D's contributions cannot be ignored while decisions are made about marketing's role in developing new consumer and industrial products.

Insight:

This article explains the importance of the interaction between marketing and R&D in new product development. The authors report results of their analysis of the new product development procedures of 252 large manufacturing companies, concluding that joint working between marketing and R&D during the design stage of new products is a key factor in explaining success.

URL: http://www.sciencedirect.com/science/article/pii/073767829090056K