9. Developing New Products and Managing the Product Life Cycle Flashcards
Ways to Obtain New Products (2)
- acquisition (thu được): some else’s product,
- new product development: firm’s own product
- Acquisition
“Buying” of a “whole company, a patent (bằng sáng chế), or a license” to produce someone else’s product. - New product development
The “development of original products”, “product improvements”, “product modifications”, and “new brands” through the firm’s own product development efforts.
New Product Development Process (8)
Idea generation
- > Idea screening
- > Concept development and testing
- > MKT strategy development
- > Business analysis
- > Product development
- > Test MKT
- > Commercialization
Idea generation (definition, 3 sources: internal, external, crowdsourcing)
The “systematic search” for “new product ideas”.
- Sources:
+ Internal: company’s own formal research and development, management and staff, and intrapreneurial programs.
+ External: sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms.
+ Crowdsourcing: inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the new product innovation process.
Idea screening (R-W-W screening framework)
Screening new product ideas to "spot good ones and drop poor ones" as soon as possible. R-W-W screening framework: Is it "real"? Can we "win"? Is it "worth" doing?
Concept Development and Testing (product idea, product concept, product image, concept testing - definition)
- Product idea is an idea for a “possible product” that the company “can see itself offering to the market”.
- Product concept is a “detailed version of the idea” stated in “meaningful consumer terms”.
- Product image is the way “consumers perceive an actual or potential product”.
- Concept testing refers to “testing new product concepts with groups of target consumers.”
Marketing strategy development (new product based on the product concept)
Designing an initial marketing strategy for a “new product” based on the “product concept”.
Marketing strategy statement consists of (3)
- Target market description
(target market; the planned value proposition; and the sales, market-share, and profit goals for the first few years.) - Value proposition planned
(planned price, distribution, and marketing budget for the first year.) - Sales, market-share, and marketing mix
(planned long-run sales, profit goals, and marketing mix strategy.)
Business analysis
A “review of the sales, costs, and profit projections” for a new product to find out “whether these factors satisfy the company’s objectives.”
Product development (def)
developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
test marketing (realistic market settings)
the product and its proposed marketing program are tested in realistic market settings.
As an alternative to extensive and costly standard test markets, companies can use
- controlled test markets
- simulated test markets.
- controlled test markets: new products and tactics are tested among controlled panels of shoppers and stores
- simulated test markets: researchers measure consumer responses to new products and marketing tactics in laboratory stores or simulated online shopping environments.
Both controlled test markets and simulated test markets:
+ reduce the costs of test marketing
+ speed up the process.
Commercialization (def, 3 questions)
introducing a new product into the market
- When to launch?
- Where to launch?
- Planned market rollout (introduction and integration of a new product or service)?
Successful new product development should be (3)
Customer centered
Team based
Systematic
Customer-centered new product development
New product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences
Team-based new product development
involves various company departments working closely together, overlapping the steps in the product development process to save time and increase effectiveness.
