NEW PRODUCT DEVELOPMENT Flashcards
refers to comprehensive process of conceptualizing, designing and introducing new products to the market
Product development
focuses on entirely new idea or innovation”
New Product Development
can present opportunities for smaller organizations to enter an industry and reach smaller target markets.
Fragmented Markets
is a cross-functional group charged with developing a specific product or business.
NPD team
4ps
Product, Place, Price, Promotion
3cs
Company, Competition, Customers
defines product idea as a possible product that the company might offer to the market. means to create a large pool of ideas
Stage 1: Idea Generation
Internal idea souces:
- R&D
- Firms Employees
External idea sources
- Competitors
- Customers
- Distributor Suppliers
process of listing all possible ideas.
Brainstorming
is a list of the attributes of an object that
is then modified.
Attribute listing
involves starting with a problem,
and then identifying the dimensions, the medium, and the
power source.
Morphological analysis
The object is to eliminate unsound concepts prior to devoting resources to them. Many companies require their executives to write up new-product ideas on a standard form that can be reviewed by a new-product committee.
Stage 2: Idea Screening
Selected ideas are develop into tangible product
concepts
Stage 3: Concept Developing and Testing
is a detailed version of the new
product idea stated in meaningful consumer terms.
product concept
is an idea for a possible product
that the company can see itself offering to the market.
Product Idea
is the way a product is perceived
by consumers.
Product Image
is a statistical
technique used in market research
to determine how people value
different attributes ( feature, function, benefits) that make up an individual product or service.
Conjoint analysis
This stage involves thorough analysis
of potential product viability such as: Production costs, Pricing Strategy, Competitive Landscape, Projected Sales Volume
Stage 4: Business Analysis
Review of the sales, costs, and profit
projections for a new
product
Business Analysis
Develop the product concept
into a physical product
Stage 5: Product development:
is an early sample, model, or
release of a product built to test a concept.
prototype
The developed product
undergoes rigorous
testing to ensure
compliance with safety
regulations, quality
standards and expected
performance
Stage 6: Testing and Validation
The product and its proposed marketing program
are introduced into realistic market settings.
Test Marketing
The product and its proposed marketing program are introduced into realistic market settings.
Standard Test Market
Test in a simulated shopping environment to a sample of consumers.
Simulated Test Market
. Begins generating sales and revenue. Detailed marketing, sales, and
distribution strategies are executed
to introduce the product to the
target market effectively
Stage 7: Commercialization
Following the product launch, ongoing monitoring and product feedback collection
are crucial to identify any issues or areas for improvement
Stage 8: Post Launch and Improvement
Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by product attributes such as quality, features, and style and design.
Product Attributes
is creating customer value and satisfaction.
Product Quality
Product quality has two dimensions:
level and consistency.
means quality consistency, freedom from defects, and
consistency in delivering a targeted level of performance.
Quality conformance
are a competitive tool for differentiating the company’s product from competitors’
products.
Product Features
describes the appearance of a product. Design contributes to a product’s usefulness as well as to its looks.
Style
is the totality of features that affect how a product looks, feels, and functions to a
consumer.
Design
is a name, term, sign, symbol, or design, or a combination of these, that
identifies the maker or seller of a product or service.
brand
involves designing and producing the container or wrapper for a
product.
Packaging
A good package should include
Product safety
Environmental concerns
identifies the product or brand.
label
occurs when a company lengthens its product line beyond its
current range. Decisions pertaining to line stretching are taken whenever the
marketer feels he can increase his profits by either adding or dropping items
from the line.
Line stretching
adding more items within the current range.
Line filling
in product development is the process of identifying
and addressing potential issues that considerably impact a project.
Risk Management
6M’s in Product Development
Man
Machine
Methodology
Materials
Measurement
Mother Nature
the labor of people involve in the design and delivery of a
product. We need to consider the equality of all staff irregard;ess of
gender, religion and age.
Man
the machine, tools, and other machineries to be use.
Machine
the production and support processes used.
Methodology
the raw materials, components, and consumables to be
use in processing.
Materials
a category for capturing and binning issues
Measurement
PDCA Process
Plan
Do
Act
Check
how can the current
process be improved?
Plan
Implement Changes
Do
Review how
changes working for the
team
Check
Identify opportunities
in the process workflow and
act immediately for
changes.
Act
It is a continous process of acquiring knowledge and skills to
adapt to a challenging business environment
Lifelong Learning in Business
help businesses develop new products and services, and improve their work processes.
Innovation
it can help businesses retain employees
by helping them grow in the company.
Employees Retention
it can help businessess become more
competitive employers by providing employees with new skills.
Competitive Advantage
