New Product Planning

Question 1

50% or more of a major companies products were introduced within the last _____

Answer 1

10 years

Question 2

estimates of new product failures

Answer 2

33-90%

Question 3

primary reason for failure

Answer 3

an inability on the part of the selling company to match up its offerings to the needs of the customer due to inadequacy of upfront intelligence, failure to stick with core competencies, failure to provide better value than competing technologies and products

Question 4

what types of new products are there

Answer 4

new to the world products, new product lines, additions to product lines, product improvements or revisions, repositioning

Question 5

how many ideas for one successful product

Answer 5

60-70

Question 6

idea screening

Answer 6

eliminate ideas for products that won’t be profitable for the firm expand viable ideas into full product concepts

Question 7

strategic risk

Answer 7

product and company don’t match

Question 8

market risk

Answer 8

product and market won’t match (no added value)

Question 9

internal risk

Answer 9

won’t meet time/budget constraints

Question 10

concept testing

Answer 10

concept is a brief written description of the product, customer reactions determine whether or not it goes forward, triggers the marketing research process

Question 11

project planning

Answer 11

milestones, cost controls, etc.
the triangle of cost, time, and quality
need interaction of key functional groups
proof of concept and prototyping

Question 12

test marketing

Answer 12

the main goal is to evaluate and adjust as necessaary the general marketing strategy to be used and the appropriate marketing mix. important in forecasting volume which is critical to cost control

Question 13

commercialization

Answer 13

launching the product focus is on marketing team and implementing the market strategy

Question 14

ten causes of new product failure

Answer 14

1. no competitive point of difference, unexpected reactions from competitors or both
2. poor positioning
3. poor quality of product
4. non delivery of promised benefits
5. too little marketing support
6. poor perceived price/quality relationship
7. faulty estimates of market potential
8. faulty estimates of production and marketing costs
9. improper distribution channels
10. rapid change in the macroenvironment after product introduced