PRODUCT DEVELOPMENT

Question 1

What is product development

Answer 1

The process of designing new goods or services, from conceptualization (the action or process of forming a concept or idea of something) to release.

Question 2

What are the various stages a company may go through when developing a new product

Answer 2

Conceptualization (the action or process of forming a concept or idea of something)

Market research

Analysis of market research

Prototype design

Test marketing

Launch

This isn’t the exact order the businesses will go through, and some businesses may not even go through some of these stages (that’s if they got through any at all).

Question 3

What is the value of product development

Answer 3

Enables the business to revitalise / replace products in the decline phase of product life cycle.

Enter new markets (this is called diversification)

Improve brand image (E.g. Nike designs a shoe made out of recycled material - this would make Nike look like they’re doing something good for the environment)

Create USP/ differentiation

Motivation of staff

Satisfy customers

Increase profits and the

profitability of the company

Question 4

What are some internal influences on new product development

Answer 4

Corporate objectives

Management attitude to risk

Finance / budget

Capacity of the factory - Does the company have the production system necessary to create the finished product.

Labour