Chapter 9 Flashcards
ways to obtain new products
acquisition: buying company, patent, license to product someone else’s product
new product development: original products, product improvements, product modifications, new brans developed from firm’s own R&D.
new product development process
idea generation,
idea screening
concept development and testing
marketing strategy development
business analysis
product development
test marketing
commercialization
idea generation
systematic search for new product ideas through:
internal - firms own formal R&D, management and staff, intrapreneurial programs.
external - sources outside firms like customers, competitors, distributors, suppliers, outside design firms (crowdsourcing).
idea screening
identify good ideas and drop poor ones, use R-W-W screening framework;
is it Real
can we Win
is it Worth doing
concept dev. and testing
test new product concepts with groups of target consumers;
product idea - possible product company sees itself offering
product concept - detailed version stated in meaningful consumer terms
product image - how consumer perceive actual/potential product
marketing strat. dev.
design initial marketing strat. for new product based on its concept, consists of:
target market description
value proposition planned
sales, market share, marketing mix
business analyis
review sales, cost, profit projections if they satisfy objectives
product dev.
devleop concept into physical product ensure idea can become workable market offering.
test marketing
tes product and proposed marketing program in realistic market setting.
likely when new product with large investment and uncertainty surrounging it/marketing program.
unlikely when simple line extension, copy of competitor product, low cost and/or management confidence.
commercialization
introduce new product to market;
when, where, planned market rollout?
features of successful new product development
customer cented: focus on finding new way to solve customer problem and satisfy them.
team based: involve various departments work closely together, overlap steps in process save time, be effective.
systematic.
crowdsourcing
inviting broad communities of people (customers, employees, independent scientists/research, public) into new product innovation process.
product life cycle
product dev., introduction, growth, maturity, decline.
product development stage of life cycle
zero sales, increasing investment costs
introduction stage of life cycle
slow sales, no profits, high distribution/promotion expenses
