chapter 9

Question 1

Why do companies develop new products?

Answer 1

-follow change market demand
-remain competitive
-keep up with changing technology
-replace dying products
-refresh and evolve existing products
-diversity product offerings to reduce risk

Question 2

What are major steps in new product development?

Answer 2

idea generation → idea screening → concept development and testing → marketing strategy development(STP) → business analysis → product development → test marketing → commercialization

Question 3

How to generate ideas for product innovation?

Answer 3

-internal sources: R and D, employees
-external sources: distributors and suppliers, competitors, customers
-crowd sourcing: network of people internal and external sources

Question 4

What are the pros and cons to companies, like Ben & Jerry’s, who rely on crowdsourcing for some of their innovation?

Answer 4

cons:
-customers might only think of minor challenges
-participants might not represent actual customers

pros:
-do opinions actually map onto value?

Question 5

Describe the five phases of the product life cycle (PLC) below and how they align with the BCG growth-share matrix.

Answer 5

Product development
company finds and develops a new product

Introduction
slow sale growth, product introduced to market
product prices are high

Growth
sales rise,

Maturity
supply is greater than demand

Decline
sales and profit crash