Chapter 9. Developing New Products

Question 1

What are all the steps involved in the New Product Development process?

Answer 1

1. Idea generation
2. Idea screening
3. Concept and development testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Question 2

What are the sources of Idea generation?

Answer 2

Internal sources, External sources, and crowdsourcing

Question 3

What is Idea Screening?

Answer 3

screening new product ideas to spot good ideas and drop bad ideas. One example of screening is the “R-W-W” method.

Question 4

What is a Product Concept?

Answer 4

a detailed version of the new product idea stated in meaningful consumer terms.

Question 5

Give an example of a product concept

Answer 5

A mid-priced sporty compact vehicle appealing to young singles and couples.

Question 6

What is Concept Testing?

Answer 6

Testing new product concepts with a group of target consumers to determine the strength of appeal.

Question 7

Define Marketing Strategy Development

Answer 7

designing an initial marketing strategy for a new product based on the product concept.

Question 8

What is a Marketing Strategy statement?

Answer 8

the marketing statement described the target market, the product’s planned price, distribution, and promotion budget, and long-term sales and profit goals.

Question 9

Define Business Analysis

Answer 9

a review of sales, cost, and profit projections for a new product to find out whether these factors satisfy the company’s objectives.

Question 10

Define Product Development

Answer 10

developing the product concept into a physical product to ensure the product idea is a workable market offering. Huge jump in investment due to R&D and applicable product safety testing.

Question 11

Define Test Marketing

Answer 11

the stage in which the product and is proposed marketing program are tested in realistic market settings

Question 12

What could be an issue during the Test Marketing stage?

Answer 12

Test marketing costs can be high, and testing takes time that may allow market opportunities to slip by or competitors to gain advantages.

Question 13

Define Commercialization

Answer 13

Introducing a new product into the market. Timing the introduction is vital the success of the product. Where to introduce the product is also crucial.

Question 14

What will the company encounter during Commercialization?

Answer 14

High costs from promoting the new product

Question 15

What are the stages in the Product Life Cycle?

Answer 15

1. Product Development
2. Introduction
3. Growth
4. Maturity
5. Decline

Question 16

What is the Product Life Cycle?

Answer 16

the course of a product’s sales and profits over its lifetime