8.1: New Product Development Strategy Flashcards
What are the two ways a firm can obtain new products?
A firm can obtain new products through acquisition or its own new product development efforts.
What do we mean by new products?
By new products, we mean original products, product improvements, product modifications, and new brands that the firm develops through its own product development.
Why are new products important to customers and marketers?
New products bring new solutions and variety to customers’ lives and are a key source of growth for companies.
Why do so many new products fail?
There are several reasons why new products fail, including overestimating market size, poor design, incorrect positioning, launching at the wrong time, pricing too high, poor advertising, and costs of product development being higher than expected.
What must a company do to create successful new products?
To create successful new products, a company must understand its consumers, markets, and competitors and develop products that deliver superior value to customers.
