Week 1-8 Flashcards
It is a simple concept. It is the CONVERSION OF CUSTOMER NEED TO A REALITY-BASED SOLUTION.
New products development
Is the lifeblood of companies. Offer new value to the customer. Without them, the firm will face its decline stage and either dies or is acquired by some other firm.
New products development
Why is product development important?
Control over product
Reduce cost
Improved performance
Created by all size companies for the growth and improvement of their business. Help in company SUSTAINABILITY
New products development
The first and foremost important reason for any new development
To provide new value to the customer
7 stages of the new product development process
Idea generation
Idea screening
Concept development and testing
Building a market strategy
Product Development
Market testing
Market commercialization/ product launch
Is an organizational function that guides every step of a products life cycle– from development to positioning and pricing– by focusing on the product and its customers first and foremost.
Product management
Five stages of marketing management
Introduction
short story
pricing
Closing
Rehash
The length of time from a product first being introduced to consumers until it is removed from the market
Product life cycle
Four stages of product life cycle
Introduction
growth
maturity
decline
What is the importance of PLC?
It specifies for individual stages of a products life and offers guidance for developing strategies to make the best use of those pages and promote the overall success of the product in the market place.
Importance of product life cycle
Helpful in sales forecasting.
Helpful as a predictive tool.
Helpful as a planning tool.
Helpful as a control tool.
Help in price determination.
Introduction
Low sales
high cost per customer
financial losses
inovative customers
few competitors
Growth
Increasing sales
cost per customer falls
profits rise
increasing number of customers more competitors
Maturity
Peak sales
cost per customer lowest
profits high
mass market
Stable number of competitors
Decline
Falling sales
cost per customer low
profits fall
customer base contracts
number of competitors fall
Is the process of defining HOW you will ACHIEVE YOUR VISION.
Referred to as a PRODUCT ROADMAP.
Strategic product planning
Four strategies of Ansoff Matrix
Market Penetration
Product Development
Market Development
Diversification
This focuses on increasing sales of existing products to an existing market.
Market penetration
Focuses on introducing new products to an existing market.
Product Development
This strategy focuses on entering a new market using existing products.
Market development
Why is strategy important in new product development?
Product development strategy is important because it uses market research to develop a plan for success in selling products.
Examples of product strategies
Improve customer satisfaction
increase lifetime customer value upsell new services
The product strategy pyramid
Road map
product plans
product strategy
mission
vision
Is a process that helps you IDENTIFY OPPORTUNITIES AND CHALLENGES both internal and external to your organization service or product.
Situational ANALYSIS
What is the importance of doing situational analysis when developing a product?
To determine the health of your business. This analysis serves as a useful tool for determining your business strengths and weaknesses and any opportunities and threats that can affect its health.
Steps in making situational analysis
*Conduct a customer analysis *consider the product and product distribution situation
*analyze the competitive advantage *scan your environment
Situational analysis tools
SWOT Analysis
PESTLE analysis
STEEPLE analysis
Porter’s five forces
5C Analysis
VRIO Analysis
Is a tool that can be used to scan the internal and external environment of an organization. It helps identify strengths, weaknesses, opportunities and threats
SWOT ANALYSIS
Is another environmental scanning techniques that help provide insight into the external situation of an organization from many different angles.
PESTLE ANALYSIS
PESTLE stands for
Political
Economic
Social
Technological
Legal
Environmental
Is a strategic management method that is used to examine the external factors affecting the growth and performance of an organization. It is a variant of the popular PESTLE analysis.
STEEPLE Analysis
Is used to analyze the competitive environment. It looks at the following areas that may affect an organization’s competitive position *supplier power
*buyer power
*competitive rivalry
* the threat of substitution
* the threat of new entry
Porter’s five forces
What are the 5C Analysis
Customers
Competitors
Company
Collaborators
Climate
Is another situation analysis tool that can be used to evaluate the resources of a company such as financial resources human resources..
it stands for VALUE, RARENESS IMITABILITY, ORGANIZATION
VRIO Analysis
Is the introduction of a good or service that is new or significantly IMPROVED with respect to its characteristics or intended uses
Product innovation
A critical strategic document – is the heart of any organized effort to commercialize a new product. It contains the reasons the project has been started, the goals, objectives, guidelines and boundaries of the project
Product innovation charter
Template to outline the proposed product development plan and build a business case. It is a document forged as an AGREEMENT BETWEEN MANUFACTURERS AND SUPPLIERS to support new product development
Charter
Is a TRANSACTION or business conducted BETWEEN ONE BUSINESS AND ANOTHER such as a wholesaler and retailer
Business-to-business (B2B)
Benefits of product innovation
*Improve sales and customer relationships
*reduce waste and costs
*boost your market position
* improve employee relations
An idea or invention to help sell or publicize a commodity
Concept
Is a procedure that begins with a set of customer needs and target specification and results in an array of product concept design alternatives from which a final design will be selected
Concept Generation
The common theme that are vital to successful concept generation
Patience and open-mindedness
Importance of concept generation
Is an important process in manufacturing because it removes the frustration due to incompatibility of products or complex products which aid prototype development. Due to this it also saves time, effort, and money spent
Successful new product development starts with…
Identifying good product ideas and using reliable criteria to decide which ideas to pursue
Steps before you allocate funds to new product development
*Idea generation
*Brainstorm product issues
*Use your R&D processes
*Review your QA (quality assurance) processes
*Review your customer complaint records
*Review your research
*Talk to your suppliers and other business partner
*Research and understand your competition
*Study catalogues and product information
*Idea screening
*SWOT analysis
*Alternatives to new product development
