WEEK 6, 7, & 8 Flashcards
buying a whole company, a patent, or a license to produce
another company’s product
Acquisition
firm’s own new product development efforts which can
take four forms!
1. Original product
2. Product improvement
3. Product modification
4. New brand
Own new product
Four forms of owning new product
01- Original Products
02- Product Improvements
03- Product Modifications
04- New Brands
a systematic search for new product ideas. Typically, a
company generates a hundreds of ideas to find a handful
of good ones in the end.
Idea generation
Two sources of new ideas
Internal idea sources
External idea sources
means nothing else than filtering the ideas to pick out
good ones. All ideas generated are screened to spot good
ones and drop poor ones as soon as posssible.
Idea screening
involves testing the concepts with a group of target consumers to find out if the concepts have strong
consumer appeal.
Concept testing
may be presented either symbolically or
physically.
It includes actual tasting (if food) and trial of product (if non-
food) to increase the reliability of the test.
Concept Testing
attractive ideas must be developed into a product concept. It involves developing product ideas into some alternative product concept, finding out how attractive each concept is to consumers, and choosing the best one.
Concept development
is a detailed version of a new
product idea.
Product concept
an idea for a possible product
Product idea
the way consumers perceive annactual or
potential product
Product image
a detailed version of the idea stated in meaningful consumer terms
Product concept
