NPD Process Flashcards
Doyle
Innovation is about new solutions, which offer value to consumers
Npd process defined as
The process of generating and transforming new product ideas into commercial output as an integral flow.
Why NPD
VRIO (barney)
Competitive advantage
Life cycles and limits to growth
Npd risk
Failure to understand consumer needs
Undefined market
Undifferentiated products
Product life cycle reaching majority level quicker. Higher innovation. You’d now need a portfolio of products at each stage to prolong things.
Dyson
Went into mature market
Rejuvenated market
Industry no longer competed on price
Raised game/ industry standard
Kotler - new product success
Depends on developing a unique superior product that offers customers better quality, new factors and high value in use
Coopers critical npd success factors
Quality of market research Market attractiveness Early product definition Market knowledge Product advantage (differentiated)
Factors influencing success
Marketing (use of research)
Organisational (size, structure, culture)
Environmental (tech change role; competition)
Strategic (long term objectives)
Managerial (objectives, attitudes)
Npd linear model
New product strategy Idea generation Screening Concept testing Business analysis Product development Market testing Commercialisation
Old Npd model - over the wall models/ departmental stage models
Time consuming Involved reworking and extended consultation control of product keeps changing All part done specifically Who’s in charge Lack of communication
cooper stage gate model
Gates are evaluation stages - by v senior people
The type of things to h considered at gates stages (break even analysis, customer acceptance/needs, quality uniqueness, performance and operational capabilities)
Criticisms of stage gate
Slow innovation because all steps are sequential, time management is not considered, it becomes difficult to compress development cycle, is burecratic, competition often already acted; no intuition allowed, partial info from step to step
Next game stage gate express
Scaled to suit different levels of risk. (High risk has all the stages of the original, those with low levels of risk means only have two gates or 1 instead of 5)
Marketing role in npd
Consumer voice (discovery) Preliminary market analysis (scoping) Development of marketing plan (development) Market tests (testing), Commercialisation (launch)
Improving markets contribution to npd (drechsler)
Need to Identify relevant capabilities that can improve marketing’s position in the NPD process
Tasks: identify and understand customer needs. Assess he market potential for new ideas.
Capabilities are this based on:
Knowledge about customer needs, past experience, forecasting, responding to needs.
General knowledge about marketing and business issues
