innovations and go to market

Question 1

why new product development

Answer 1

increased competition
more demanding customers
growth strategies of companies
fast changing technologies
need for continuous innovations regarding products and services

Question 2

product innovation can be

Answer 2

better performing product
a brand new product
totally new category

Question 3

two ways of product development

Answer 3

developing new products in own R n D department
acquisition: buying company, patent or license to produce and sell the products of someone else

Question 4

Risks of innovation

Answer 4

high investments and costs
needs time and market is unpredictable
delays during the development

Question 5

% of failures is very high

Answer 5

more than 30000 new products every year
70-80% is a failure
only 10% really are radical innovations

Question 6

Reasons of failure

Answer 6

• bad idea
• smaller market potential
• bad product functioning
• me too product
• price is too high
• bad or weak advertising campaign
• wrong moment (too early)
• strong reaction to competition

Question 7

Reasons for success

Answer 7

• product is unique and relevant
• superior quality, new functions, high perceived value
• better performance compared to competition
• market segment is big
• high involvement and support of top management
• very innovative

Question 8

NPD

Answer 8

more difficult to be successful as a consequence of
fragmentation of the market and high competition

Question 9

Npd consequence

Answer 9

resulting in smaller turnover and profit potential for each new product
more government regulation
increasing production, media and distribution costs
competition reacts faster

Question 10

process of npd

Answer 10

1. strategy for new products
2. idea generation
3. idea screening
4. concept development and testing
5. strategy and marketing mix development
6. business plan
7. preproduction
8. market test
9. production and launch
10. evaluation

Question 11

external factors

Answer 11

right insights consumer research
opportunities
competition

Question 12

internal factors

Answer 12

production capabilities and capacity
budget - money
know how and expertise needed

Question 13

internal sources

Answer 13

own R and D department
managers, marketeers, salesmen, production people
brainstorm sessions
programs to involve employees to bring new ideas

Question 14

external sources customers

Answer 14

observations
complaints
listening to our sales staff
co creation
crowdsourcing

Question 15

External sources competition

Answer 15

monitoring competition
analyses of competitors products
co branding

Question 16

External sources suppliers and distributors

Answer 16

suppliers new production techniques
distributors new tendencies in the market
others
fairs
professional magazines

Question 17

idea screening

Answer 17

objective= reduction of list of ideas
ideas have to be technically feasible and commercially interesting

Question 18

Idea screening: how

Answer 18

internal board
externally through market research

Question 19

concept development

Answer 19

attractive ideas are translated into real product concepts

Question 20

product idea

Answer 20

idea for a potential product that a company can launch on the market

Question 21

product concept

Answer 21

extensive description of this idea, formulated to be understood by consumers

Question 22

concept test

Answer 22

testing of a product concept with the target consumer segment to find out if the product is attractive

Question 23

Concept test: how

Answer 23

Concept boards

Question 24

concept test to find out

Answer 24

which concept is the most interesting, attractive
the buying intention predicting the sales volume of the product, BUT be careful

Question 25

3 major parts

Answer 25

market definition and positioning of the product planned price, promotion and distribution including the market budget for the first year market share objectives

Question 26

Business plan

Answer 26

check if the budgeted turnover costs and profit of the new product or brand match with the objectives of the company

Question 27

p and l analysis

Answer 27

profit and loss analysis

Question 28

step 7 preproduction

Answer 28

big step financially test if the product idea can really be produced

Question 29

Preproduction objective

Answer 29

develop a prototype that consumers are going to appreciate and that can be produced at reasonable costs

Question 30

step 8 test market

Answer 30

test the product performance maybe test the full marketing program for the new product positioning advertising distribution and price test the consumer reactions: usage, repeat purchases

Question 31

market tests depend on

Answer 31

required marketing budget, so high risk of introduction market research costs time

Question 32

product and launch

Answer 32

launch in one region or nationally/internationally smaller companies launch in steps big companies combination of countries or european roll out international companies and multinationals: on a global scale

Question 33

Product and launch to whom?

Answer 33

target groups innovators and or early adopters distribution channels needed?

Question 34

Product and launch how?

Answer 34

division of marketing budget advertising communication campaign promotions

Question 35

evaluation

Answer 35

mostly the first two months are crucial adoption by retailers and consumers are purchases followed by repurchases buzz tracking rotation of the product in stores what about budgeted production cost

Question 36

What is Plc

Answer 36

Product life cycle reveals turnover and profit loss of a product during its life cycle can relate to a product category, a product form or a brand

Question 37

5 phases turnover and profit

Answer 37

product development phase introduction phase growth phase maturity phase decline

Question 38

plc concept can be used for

Answer 38

product category/brand longest life cycle - extensive maturity phase product mostly standard life cycle brand + product PLC can change rapidly depending on the competitors reactions

Question 39

importance of plc concept

Answer 39

framework to understand the functioning and mechanisms of market and products not suited to predict results or define marketing strategies because strategy is as well the source as the result of a life cycle stage actual position of a product in the plc is the base for defining your marketing strategy the chosen marketing strategy will impact the results in the next phases