Lecture 7- Product Flashcards
What % of new products fail?
60-80%
Where does more than 25% of total revenue and profits come from?
The launch of new products
What are the stages of New Product Development?
Idea generation
Idea screening
Concept testing
Development
Market testing
Launch
If a company launches their first product what is their main worry?
Sales
If a company already has an existing product, what does it have to worry about when launching another?
Cannibilzation
If a company introduces another brand, what are the three ways they could get sales from?
1) Market Expansion Effect “category size impact”:
Consumers new to the market
2) Competitive Effect:
Consumers who originally were purchasing from competitor
3) Cannibalization Effect:
Consumers buying from same company, diff brand (Unilever)
Product LifeCycle (PLC)
In which stage of the PLC are advertising efforts typically the lowest, as the product is phased out of the market?
Decline
During which stage of the PLC do companies usually invest heavily in advertising to build product awareness and encourage early adoption?
Introduction
At what point in the PLC do advertising efforts focus on reinforcing brand loyalty and differentiating from competitors in a saturated market?
Maturity
In which stage of the product life cycle does advertising aim to highlight the product’s superiority and drive rapid market expansion as demand begins to rise?
Growth
Which stage of new product development?
Research, consumer or employee feedback, competitors, crowdsourcing, etc
idea generation
Which stage of new product development?
Is the product idea compatible with the company’s objectives, resources, and consumer needs?
Idea screening
Which stage of new product development?
Test the idea, not the product
Concept Testing
Which stage of new product development?
Address engineering and commercial issues
Development
Which stage of new product development?
Test the product in a few places
Market Testing
Which stage of new product development?
Full-Scale Launch
Launch
Product lifecycle for disruptive technologies
