Product Management 2

Question 1

New products defined fom companys perspective

Answer 1

1) New-to-the-world
2) Reposition existing products
* Add new market segments (e.g., cell phones from business usage to adults to teens).
3) Cost reduction
* Introduce lower-cost products with fewer features or scaled-back warranty or service

Question 2

Customers perspective on new products?

Answer 2

Question is rather: Is the product new to me?

Question 3

Types of new-to-the-world products

Answer 3

1) Disruptive innovations are so innovative they create a fundamental change in the marketplace (e.g., connected clothing).
2) Sustaining innovations are newer, better faster

Question 4

Why do products fail?

Answer 4

-company
-customers
-competitors
-environment

Question 5

Why do products fail? -company

Answer 5

-inadequate value proposition
-poor marketing communications
-products doesn´t meet expectations
-failure to fully develop product

Question 6

Why do products fail? -customers

Answer 6

-change in purchase priorities
-higher expectations

Question 7

Why do products fail? -competitors

Answer 7

-aggresively attack new competition

Question 8

Why do products fail? -environment

Answer 8

• Changes in government regulation of legislation.
• Changes in societal demands.
• Economic changes

Question 9

3 major activities of the new product development

Answer 9

1) Identify product opportunities
2) Define the product opportunity
3) Develop the product opportunity

Question 10

Howy can new ideas being generated

Answer 10

1) Internal
2) External
3) Customer
4) Distributors

Question 11

Which mistakes can occur when evaluating ideas?

Answer 11

1) Go-to-market mistake
2) Stop-to-market mistake

Question 12

Explain go-to-market mistake

Answer 12

keep a bad product idea from moving into product development

Question 13

Explain stop-to-market mistake

Answer 13

A good idea is eliminated prematurely

Question 14

How to do an initial product idea screening?

Answer 14

• Time to market (how long will it take to develop and get the product to market).
• ROI (what is the expected return for the dollars invested in the project).
• New product fit with overall company product portfolio

Question 15

How to define the product opportunity?

Answer 15

-Define and test the product concept.
-Create a marketing strategy.
-Analyze the product’s business case.

Question 16

What are the objectives of defining and testing the product?

Answer 16

-Define the value proposition.
-Identify the target market and purchase frequency.
-Delineate the product characteristics: Look, feel, phycical characteristics, features

Question 17

How to create the marketing strategy?

Answer 17

Define:
-Budget
-Promotion
-Place
-Price
-Product
-Target market

Question 18

How to conduct a business case analysis?

Answer 18

1) Total Demand analysis
2) Profitability analysis

Question 19

How to calculate total demand?

Answer 19

-new purchases
-repeat purchases
-replacement purchase

Question 20

What includes a profitability analysis?

Answer 20

long- and short-term analysis

Question 21

Steps in developing a product

Answer 21

1) Product testing: alpha and beta
2) Test the market
-consumer product market tests
-business product market tests
3) Product launch

Question 22

Define innovation diffusion process

Answer 22

Innovation diffusion process is how long it takes a
product to move from first purchase to last purchase
(the last set of users to adopt the product)

Question 23

Steps in the consumer adoption and diffusion process

Answer 23

Awareness -> Interest -> Evaluation -> Trial -> Adoption

Question 24

Types of adopters

Answer 24

1) Innovators
2) Early Adopters
3) Early Majority
4) Late Majority
5) Leggards

Question 25

Benefits internal idea generation

Answer 25

-key employees know the capabilities of the company and the needs of the market -direct interaction with customers can lead to good product ideas

Question 26

Benefits customers idea generation

Answer 26

-will not likely to lead to new-to-the world products but to substantial enhancments of existing products

Question 27

Benefits distributors idea generation

Answer 27

-particularly good if they are the primary link between customer and company

Question 28

Definition alpha and beta tesing

Answer 28

-alpha: internal by engineers and employeesw -beta: done by potential customers

Question 29

Description consumer market tests

Answer 29

-conducted in representative market -less then a year -important to define metrixs for evaluation

Question 30

Describe business product market tests

Answer 30

-tested differently than consumer products -smaller scope and fewer companies and individuals -only customers with long term relationship -customers provide adittional support

Question 31

Describe product launch

Answer 31

-important for long-term success -oftenmarketing budget is front-loaded at product launch to cause trial purchases and repeat as well as replacement purchases

Question 32

Describe steps consumer product adoption process

Answer 32

A: know product but insufficient information to move forward in adoption process I: customer wants to receive additional information E: customer combines all information and evaluates the product for trial purchase T: customer purchases the product for the purpose of making a value decision A: purchase the product with intent of becomin a dependable user