Chapter 8: Product Development Flashcards
How can companies obtain new products?
By either acquiring the rights to produce an existing product or to initiate a new product through product development.
What is “New Product Development” and how are they successful.
New Product Development is the process by which new original products, product modifications, product improvements, and new brands are created by internal R&D effort. NPD’s are successful by delivering superior value to customers that come from understanding the markets and the firms in them.
Where do companies get new ideas from?
The new ideas come from internal R & D, but also from competitors and their databases, along with suppliers and other actors in the industry. But most importantly, customers can deliver ideas through either crowdsourcing or open innovation.
What are the major steps in new product development?
The major steps in new product development are idea generation, idea screening, concept development, and testing, marketing strategy development, business analysis, product development, test marketing, and commercialization.
What is idea generation, and what are the key aspects of it?
Idea generation is the systematic search for a new product. Ideas can come from internal sources such as R & D, but it also comes from internal social networks and intrapreneurship within the company along with suppliers, competitors, and even customers.
What is crowdsourcing, and how does it work?
Crowdsourcing invites broad communities of people to
What is idea screening, and how does it work?
Idea screening is the process by which the generated ideas are evaluated for viability within the company, as done by the RWW method. R is real, meaning that there is a real desire among consumers to buy that product. W wins, where is the product a winner in its market, and does the company have the resources to get it there? W is worth doing, meaning does it go with the firm’s mission, and is it profitable?
What is a product idea?
A product idea is a concept that a firm can see itself offering to the market.
What is a product concept?
The product concept is a detailed version of the product idea where a detailed vision of that product is written in terms relevant to consumers.
What is product image?
Product image is how consumers perceive n actual or potential product.
What is product concept development?
Product concept development is creating alternative product concepts, testing them on consumers, and then going with the one that makes the most sense.
What is concept testing?
Concept Testing is how a new product is introduced to consumers. It could either be physically or symbolically showing them the product, or conducting surveys about the product.
What is a Marketing Strategy Development?
The MSD is the process where three things are described: the target market, planned value proposition, sales, profits, and market share goals, along with the planned price, distribution, and marketing budget, and finally the long run sales goals, long-term profits, and marketing mix strategy.
What is the business analysis of a new product?
Business analysis in that case is to review the sales, costs, and profits of a potential new product, and then, along with analyzing customer value, determining whether or not the product is viable.
What is product development?
Product development is the process of R&D turning a concept into a real physical product that can be sold.
