O#3 How firms develop new products

Question 1

New Product development process

Answer 1

1. Idea generation
2. Concept testing
3. Product development
4. market testing
5. Product launch
6. Evaluation of results

Question 2

1. idea generation

Answer 2

R&D 
License technology from firms
Research competitive products and services
Employees
customers
Suppliers

Question 3

2. Concept testing

Answer 3

Brief written descriptions of a product or service; its technology, working principles, and forms; and what customer needs it would satisfy.

Question 4

3. Product development or product design

Answer 4

Entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product.

Question 5

Alpha testing

Answer 5

An attempt by the firm to determine whether

1. A product will perform according to its design
2. It satisfies the need

Question 6

Beta testing

Answer 6

Having potential consumers examine a product prototype to det:

Functionality,
Performance,
Potential problems,

Question 7

4. Market testing

Answer 7

1. Premarket tests

Conducted before a product or service is brought to market to determine:
How many customers will try
Then continue to use it.

2. Test Marketing
   Introduces a new product or service to a limited geographical area (usually a few cities) prior to a national launch.

Question 8

5. Product launch

Answer 8

If a market testing return positive outcomes
the firm is ready to introduce to the entire market

Marketing mix

Question 9

6. Evaluation of results

Answer 9

Critical post launched a review
success or failure?
Additional resources to the marketing mix?