3.4b New Product Development Flashcards
1
Q
New product development definition
A
When a firm creates a new or improved good or service for release into a new market
2
Q
Stages of new product development
A
- Generation of ideas
- Analysis of ideas
- Product development
- Test marketing
- Launch
3
Q
Advantages of focusing on core products
A
- Greater efficiency
- More likely to recognise needs of market
- Economies of scale
4
Q
Advantages of product profileration
A
- Spreads risk - diversification
- Can appeal to different market segments so more sales
- Market saturation may mean firm can only grow if it diversifies
5
Q
Reasons for new products:
A
- Technological developments
- Competitors products
- Gap in the market
