Chapter 1 Flashcards
1
Q
What is value?
A
Value = Benefits/Cost
2
Q
What is value a function of?
A
- Benefits
- Cost
- Context
3
Q
What are the types of new products? Know their descriptions.
A
- New-to-the-World (new market)
- New-to-the-Firm (new category for the firm)
- Additions to Existing Product Lines, (line extensions and flankers)
- Improvements and Revisions to Current Products
- Repositionings (new use or application)
- Cost Reductions (same performance, lower cost)
4
Q
What percentage of new products fail?
A
40%
5
Q
According to Peter Drucker, the purpose of a business is to create a customer? Therefore, what are its two basic functions?
A
Marketing and Innovation
6
Q
What are the three inputs to the New Products Process?
A
The right quality, at the right time, at the right cost
7
Q
All NPD activities are targeted to directly or indirectly improve one of the four dimensions of customer value. What are these four dimensions?
A
- Quality
- Cost
- Time
- Experience
8
Q
What are the six corporate functions?
A
- Accounting
- Human Resources
- Finance
- Operations
- Marketing/Sales
- R&D-MIS-IT