New Product Development Strategy
New-Product Development Process
Managing New-Product Development
Product Life-Cycle Stages
Additional Product & Service Considerations
100
Development of original products, product improvements, product modifications, and new brands through the firm's own product development
New-product development
100
The systemic search for new-product ideas.
Idea generation
100
Name the three different approaches for managing new-product development.
Customer-centered new-product development, team-based new-product development, and systemic new-product development.
100
The course of a product's sales and profits over its lifetime.
Product life cycle
100
May manufacturers offer written product warranties to convince customers of their product's quality. To protect consumers, Congress passed this act in 1975. It requires that full warranties meet certain minimum standards, including repair "within reasonable time and without charge" or a replacement or full refund if the product does not work "after a reasonable number of attempts."
Magnuson-Moss Warranty Act of 1975
200
Which legendary brand is used for the introduction to the chapter?
Apple
200
Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable market offering.
Product development
200
New-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.
Customer-centered new-product development
200
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
Fad
200
A recent survey of manufacturing companies found that ___ was the second-largest litigation concern, behind only labor and employment matters.
Product liability--consumers being injured by a product with a defective design.
300
List two reasons why products may fail.
-Company may overestimate the market size. -Product may be poorly designed. -Product may be incorrectly positions, launched at wrong time, priced too high, or poorly advertised. -Product development costs are higher than expected. -Competitors fight back harder than expected -Top level exec pushes idea through despite market research findings
300
The act of introducing a new product into the market.
Commercialization
300
The book lists several companies known for their team-based, innovative cultures. Name two.
-Google -Apple -IDEO -3M -Proctor & Gamble -General Electric
300
Begins when the company finds and develops a new-product idea.
Product development
300
Which candy bar brand has seen success because of coincidences between the candy bar name and the Japanese good luck phrase, "kitto katsu?"
Nestle Kit Kat
400
According to one estimate, what percentage of all new products in America end up failing?
90%
400
Idea generation--idea screening--concept development and testing--marketing strategy development--business analysis--product development--test marketing--commercialization. Name the missing part of the new-product development process.
Business analysis
400
An approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness.
Team-based new-product development
400
The product life-cycle stage in which a product's sales decline.
Decline stage
400
True or false. Governments may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
True
500
A firm can obtain two products in two ways. One is new-product development. Name the other one.
Acquisition -- by buying a whole company, a patent, or a license to produce someone else' product
500
One form of Test Marketing, this type of test market uses a small number of representative test cities, conducts a full marketing campaign in these cities, and uses store audits, consumer and distributor surveys, and other measures to gauge product performance
Standard test market
500
Under this approach, a company can install an innovation management system to collect, review, evaluate, and manage new-product ideas.
Systemic new-product development
500
Name the 5 stages of the product life-cycle
1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline
500
Name one challenge a company may face in marketing international products or services.
-Knowing which products/services to introduce. -Deciding how much to standardize/adapt their products/services for world markets. -Packaging (names, colors, labels may not translate easily) -Cultural differences (is there a need/market niche available in other countries?)
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