Chapter 9 new product development and product life cycle strategies pdf
File Name: chapter 9 new product development and product life cycle strategies .zip
- Chapter 9 Designing and Managing Products
- New product development
- New Product Development and Product Life-Cycle Strategies
Chapter 9 Designing and Managing Products
Log in Get Started. See Full Reader. Download for free Report this document. Embed Size px x x x x Major sources of new product ideas include internal sources and external sources such as customers, competitors, distributors and suppliers, and others. A product idea is an idea for a possible product that the company can see itself offering to the market. A product concept is a detailed version of the idea stated in meaningful consumer terms.
A product image is the way consumers perceive an actual or potential product. Concept testing, Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal. Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
Customer-centered new product development begins and ends with understanding customers and involving them in the process. The innovation management system approach yields two favorable outcomes.
First, it helps create an innovation-oriented company culture. Second, it will yield a larger number of new product ideas, among which will be found some especially good ones. Product Life-Cycle Strategies Product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market.
Not all products reach this final stage. Some continue to grow and others rise and fall. Product development 1 Investment is made, sales have not begun, new product ideas are generated, operationalized, and tested. Introduction 2 costs are very high, slow sales volumes to start, makes little money at this stage heavy expenses of product introduction Growth 3 when sales are increasing at their fastest rate The five stages of the PLC Maturity 4 sales volume peaks and market saturation is reached, new competitors enter the market, profits decline.
Decline 5 sales fall off, and profit drop , decide whether to maintain, harvest, or drop the product. Additional Product and Service Considerations 1 Social responsibility.
This includes public policy issues and regulations involving acquiring or dropping products, patent protection, product quality and safety, and product warranties. International marketers must decide how much to standardize or adapt their offerings for world markets.
New product development
Report Download. Explain how companies find and develop new-product ideas. List and define the steps in the new product development process and the major considerations in managing this process. Describe the stages of the product life cycle and how marketing strategies change during a products life cycle. Discuss two additional product issues: socially responsible product decisions and international product and services marketing.
A an underestimated market size B a poorly designed product C an incorrectly positioned product D higher than anticipated costs of product development E ineffective advertising Answer: A Diff: 2 Page Ref: Skill: Concept Objective: A All products eventually decline. B Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages. C A firm must be good at developing new products to replace aging ones. D A firm must be good at adapting its marketing strategies. E It is difficult to plot the stages as a product goes through them.
LEGO has decided to go back to basics and focus on the classic bricks rather than complicated kits. Did you play with LEGO blocks when you were a kid? Almost everyone did. They were a big deal. Store shelves were stacked with boxes of plastic bricks, wheels, and windows, plus packages containing just the pieces you needed to make something special, like a LEGO helicopter. Nowadays, the seventy-nine-year old Denmark company is doing very well: in , its sales rose 37 percent and profits were up 70 percent Reuters,
New Product Development and. Product Life-Cycle Strategies. Chapter 9 profits level off or decline. Product Life-Cycle Strategies for new products. Ch 9 -3.
New Product Development and Product Life-Cycle Strategies
Report Download. This stage is the systematic search for new product ideas. This stage focuses on reducing the number of ideas by dropping poor ideas as soon as possible. This helps reduce costs and focus attention more productively.