lesson 3: product development Flashcards
types
1. product-
2. service-
3. combination -
tangiable
intangible
product and service
classification of product
consumer product- ready for use or consumptions of consumers
ex: coca cola
industrial product- used to create or manufacture another (industrial or consumer product) ex: cold drinks
ready for use or consumptions of consumers
ex: coca cola
consumer product-
- used to create or manufacture another (industrial or consumer product) ex: cold drinks
industrial product
- item offered for sale which can be physical or virtual in form.
product
- is a process that is intangible. This means it doesn’t have physical dimensions to it; it can’t be measured or weighed.
service
______ is when a business offers a service and a product or a good together as its practice. This is also called _____
service product , service-good mix.
On the basis of the purpose for which they are bought
PRODUCT CLASSIFICATION
Goods or Services which are bought by final consumer for consumption. These are further classified into durable goods and non-durable goods
consumer product
Products which is purchased for further processing to produce other products. Examples: raw materials, component parts, major equipment, operating supplies, etc.
INDUSTRIAL product
It is anything that can be offered to a market to satisfy the desire or need of a customer.
product
This is also called ——-service-good mix.
service product or combination
A_______- is a product which is totally new in concept. It is also defined as any product which is perceived by the customer as being _____
new product, new
category of new product;
A COMPLETELY NEW PRODUCT
INNOVATED FROM AN EXISTING ONE
- increasing competition
ex: nike and adididas (nag gawa si nike new shoes gagawan ng bagong version nmn ni adidas) - changes in consumer needs
ex: age, height etc
- bear brand of nestle
childrens milk- adult milk
unhealthy- vegetarian
increasing competition ex:
- converge vs pldt
- lenovo vs acer
- iphone vs samsung
- tesla and nissan
REASONS FOR NEW PRODUCT DEVELOPMENT
INCREASING COMPETITION
CHANGE IN CONSUMER NEEDS CHANGES IN TECHNOLOGY DIVERSIFICATION OF RISK
REPUTATION AND GOODWILL UTILIZATION OF EXCESS CAPACITY SEASONAL FLUCTUATIONS
GROWTH AND DEVELOPMENT
- is the process of companies and individuals competing in the same industry or field. This sort of competition applies to all businesses.
increasing competition-
(business competition)
can be attributed to technological improvements or in changes in people’s knowledge and priorities. Businesses must adapt in order to meet customer’s needs.
CHANGE IN CONSUMER NEEDS
business
- existing or
- yet to be opened
? is the overall process of invention, innovation and diffusion of technology or processes.
CHANGES IN TECHNOLOGY
? is the process of investing across a range of industries and categories within one portfolio. This ensures that even if some invesment perform poorly, other investments can cover the loss.
DIVERSIFICATION OF RISK
sm investment corporations
sm retail- 77.3%
multi reality development corporation- 90.9
IBSC- 99.7
chinabank- 19.9
sodexo- 40
henfels investment corporation- 99
belleshares holdings inc- 99
asia pacific computer technology center inc- 51.8
citymall- 34
negros navigation- 34.5
sm prime holdings- 77.3
sto roberto marketing corporation- 100
Bdo unibank- 44.3
primebridge holdings inc- 98.2
MCMDL- 29.3
Mountain bliss resort and development- 100
the B- 62
nagtahan property holdings - 99.7
net group-
___ is an intangible asset and always has a particular value. ___ is a favorably disposed attitude toward someone or something while reputation is what somebody is known for.
GOODWILL AND REPUTATION
occurs when a firm operates or is producing output at less than the optimum level and mostly happens when the demand for the products decline.
UTILIZATION OF EXCESS CAPACITY
This can also be mean that the company has excess funds or free cash that can be used in its market expansion or product line investment.
UTILIZATION OF EXCESS CAPACITY
_____ refers to periodic fluctuations in certain business areas and cycles that occur regularly based on a particular season.
SEASONAL FLUCTUATIONS, Seasonality
A business experience high sales during peak and low during off-peak.
SEASONAL FLUCTUATIONS
Business development can be summarized as the ideas, initiatives and activities that help make a business better. This includes increasing revenues in terms of business expansion and growth.
GROWTH AND DEVELOPMENT
New products are developed through a systematic process. The whole process can be divided into many stages but there are eight important stages that needs to be considered.
PROCESS OF NEW
PRODUCT DEVELOPMENT
stages of new product development
: idea generation
:idea screening
: concept development and testing
: new product pricing
: beta testing and market testing
: business analysis
: commercialization
: technical implementation
The starting stage for new product development in which typically an organization develop a number of ideas for new product.
STAGE 1: IDEA GENERATION
Ideas can be developed using the various ways of opportunity seeking.
STAGE 1: IDEA GENERATION
This is the process of spotting, evaluating and pursuing relevant and sustainable revenue and profit generating activities in the marketplace.
OPPORTUNITY SEEKING
OPPORTUNITY SEEKING
The two ways that can be used are the
Voice of the Customers and the Voice of Enterprise.
This is a research process used to capture the changing needs of consumers (endusers) and customers (channels). A key to ??? is identifying and understanding pain points, barriers, and its root causes to trigger greater demand in an industry
VOICE OF CUSTOMERS
consumers (____) and customers (___).
endusers
channels
A key to ??? is identifying and understanding pain points, barriers, and its root causes to trigger greater demand in an industry
VOICE OF CUSTOMERS
pain point process
Step 1: Pain Hunting
Step 2: Pain Points Identification
Step 3: Pain Points Understanding
Step 4: Pain Points Healing
It is important that the entrepreneur understand the passion, desires, fears and pain points of the customers when formulating their value propositions.
- PAIN HUNTING
To know the consumer pain points, the target market can be asked what they dislike about a particular brand or product.
PAIN POINTS IDENTIFICATION
They can interview them, talk to them, and be able to identify what particular products or services they have problems with.
Pain hunting
.
These can be plotted for analysis in the next steps. Beyond understanding customer’s needs, entrepreneurs must also understand them as human beings.
PAIN POINTS IDENTIFICATION
Not all pain pain points have the same level of importance. Entrepreneurs need to understand the frequency and depth of the pain points.
- PAIN POINTS UNDERSTANDING
This is where critical processes need to be identified and prioritized based on which can solve more of customers’ problems or create greater value for the customers.
- PAIN POINTS UNDERSTANDING
It is also important for entrepreneurs to have empathy and not just understand pain points. They must also accept that change is needed, and that speed of change by external factors may leave them obsolete in their industry. Sometimes, the owners themselves experience the pain points and they know and understand the need immediately.
- pain healing
