Chapter 2

Question 1

What are the five phases of the basic new product process?

Answer 1

Phase 1: Opportunity Identification/Selection
Phase 2: Concept Generation
Phase 3: Concept/Project Evaluation
Phase 4: Development
Phase 5: Launch

Question 2

What the evaluation tasks in each phase of the basic new product process? For Phase 3, what does “full screen” refer to?

Answer 2

Phase 1: Direction: Where should we look?
Phase 2: Initial Review: Is the idea worth screening?
Phase 3: Full Screen: Should we try to develop it?
Phase 4: Progress Reports: Have we developed it?
Phase 5: Market Testing: Should we market it?

Full screen is a scoring model used to make a decision whether to undertake development or quit.

Question 3

Phase 1 Questions

1. Describe Phase 1.
2. What activities feed strategic planning for new products (3)?
3. What are the sources of identified opportunities (4)?

Answer 3

1. Business opportunities are selected from all data available within and outside the corporation.
2. Ongoing Marketing Planning, Ongoing Corporate Planning, Special Opportunity Analysis (e.g., A firm has been overlooking a skill in manufacturing process engineering)
3. An Underutilized Resource, A New Resource (discovery of a new material with many potential uses), An External Mandate (stagnant market combined with competitive threat), An Internal Mandate (new products used to close long-term sales gap, senior management desires)

Question 4

Describe Phase 2.

Answer 4

The generation of product ideas that address the identified business opportunity in a variety of novel ways

Question 5

Phase 3 Questions

1. Describe Phase 3.
2. What are the stages of phase 3 (4)?
3. What does “fuzzy front end” refer to? Why?

Answer 5

1. Evaluate new product concepts (as they come in) on technical, marketing, and financial criteria. Rank them and select the best two or three.
2. Screening (pre-technical evaluation), Concept Testing, Full Screen, Project Evaluation (begin preparing product protocol)
   * Protocol refers to agreement among internal stakeholders before extensive technical development.
3. The first three stages of the new products process; the product concept is still fuzzy (by the end of the project, most of the fuzz should be removed). These pretechnical evaluation stages involve limited information.

Question 6

Phase 4 Questions

1. What are the two tasks of this phase?

Answer 6

1. Technical Tasks: Technical Development

2. Marketing Tasks: Price, Place, Promotion

Question 7

Phase 5: Commercialize the plans and prototypes from development phase, begin distribution and sale of the new product (maybe on a limited basis), and manage the launch program to achieve the goals and objectives set in the PIC (as modified in the final business plan).

Answer 7

No Answer

Question 8

What is the key takeaway from the Life Cycle of a Concept diagram?

Answer 8

There is a positive relationship between Market Value (x-axis) and Clarity (y-axis). The life cycle of a concept also corresponds to the five stages of the New Products Process.

Question 9

Can the NPD process be applied to services?

• Yes, successful services tend to come from firms that use a systematic process much like the NPD process - all the tools fit.
• Iterations may be more frequent since they are less expensive.
• Unique, superior service, providing value and benefit as perceived by the customer, must be delivered to achieve success.
• Speed to market with services is important, especially in enhancing reputation, image, and customer loyalty.

Answer 9

No Answer

Question 10

Can the NPD process be applied to New-to-the-World products?

• The challenges are different, but the first phase remains the same.
• There is a clear connection required between the radical innovation and the firm’s strategic vision.
• The NPD process is more explanatory: the voice of the customer (VOC) needs to be brought in early.
• Lead users may be critical.

Answer 10

No Answer