Chapter 7

Question 1

Types of product development

Answer 1

New to-the-company
Improvement in existing
Extension of existing
New-to-the- market

Question 2

Questions to ask when deciding what products to offer

Answer 2

What does my customer want to buy?

Question 3

Utility

Answer 3

Products provide customers with 4 types of utility benefit

Question 4

Types of Utility benefit

Answer 4

Time
Place
Ownership
Form

Question 5

New-to-the-company product

Answer 5

Goat or service new to the company but has been sold by a competitor

Question 6

Improvement in existing product

Answer 6

Enhancement of a product already on the market

Question 7

Extension of existing product

Answer 7

New product developer as a variation of an already existing product

Question 8

New-to-the-market product

Answer 8

Goat or service that has not been available to consumers or manufacturers in the past

Question 9

Ext of time utility

Answer 9

Good or service that fits the situation at a perfect time

Question 10

Ex) of place Utility

Answer 10

Good or service available in a convenient location

Question 11

Ex) of ownership Utility

Answer 11

Transferring a products owner

Question 12

Ext form Utility

Answer 12

Changing the composition of a product

Question 13

Ask this to know if a product has utility

Answer 13

1 who would my customs be?
2 why will customers buy the product from me?
3 how will customers benefit from my product?

Question 14

Segments of industry

Answer 14

Overall industry
Market
Market segment
Niche

Question 15

Overall industry

Answer 15

Group of related businesses that do similar things and compete with each other

Question 16

Market

Answer 16

Potential buyers who share a common need that can be met by a certain product

Question 17

Market segment

Answer 17

Potential buyers w/ common characteristics that influence their buying decisions

Question 18

Niche

Answer 18

Narrowly defined group of potential customers w/ a specific set of needs

Question 19

When to develop and market a new product questions

Answer 19

1 who are my primary customers
2 will I sell to individuals, businesses or both?
3 if I sell to other businesses, who will be the actual end users?

Question 20

Breakeven analysis

Answer 20

Method of determining the level of sales at which the company will break even

Question 21

Fixed costs

Answer 21

Costs that don’t change when the amount of goods sold changes

Question 22

Variable costs

Answer 22

Costs that vary, in total, as the quantity of goods self changes but stay constant on a per-unit basis

Question 23

Why is product development so risky?

Answer 23

Trade-offs
Time pressure
Economics

Question 24

Product development process

Answer 24

1. Evaluate opportunities and select the best product idea
2. Get feedback to refine the product concept
3. Make sure the product performs and appeals to consumers
4. Design w/ manufacturing in mind
5. Built and test prototypes
6. Ramp up production and run market tests
   7, launch the product

Question 25

Business benefits from ai

Answer 25

Increases productivity
Reduce operating costs
Improved speed to market
Transformed business and operating morels