AEM 240 essay answers - I a Consumer goods products...

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I. a. Consumer goods- products purchased by the ultimate consumer. For example, an Apple computer sold to a customer for home use is an example of a consumer good. i. Convenience goods- Items such as toothpaste that the consumer purchases frequently and with a minimum of shopping effort. ii. Shopping goods- everyday clothing for example…items for which the consumer compares several alternatives on criteria such as price, quality, or style. iii. Specialty goods- Items such as a Rolex watch that a consumer makes a special effort to search out and buy. iv. Unsought goods- items that the consumer either does not know about or knows about but does not initially want. b. New product development process- Stages a firm goes through to identify business opportunities and covert them to a salable good or service. i. New-product strategy development- the state of the new-product process that defines the role for a new product in terms of the firm’s overall corporate objectives. Objectives of the State: Identify markets and Strategic Roles 1. Objectives of the stage: Identify Markets and Strategic Roles- A company uses market scanning techniques such as looking at social forces (Demographics, Culture) economic forces (Macroeconomic conditions, Consumer income), technological forces (technology of tomorrow, technology’s impact on consumer value, electronic business technologies), competitive forces, regulatory forces ii. Idea Generation- Developing a pool of concepts as candidates for new products 1. Customer and Supplier Suggestions- Companies often talk to customers and suppliers to discover new-product opportunities. “Look outside the company for solutions to problems rather than insist the company knows best” 2. Employee and Co-Worker suggestions- Employees may be encouraged to suggest new-product ideas through suggestion boxes or contests. 3. Research and development breakthroughs- Professional R&D laboratories, though expensive, provide new product ideas. 4. Competitive products- New-product ideas can also be found by analyzing the competition. In 2000, the cell phone was a simple device. Now it has so many features that electronic device managers that used to offer just one of these features in the products are now looking at these fro competitors in completely different electronic industries to develop their own next generation of products.
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iii. Screening and Evaluation- the stage of the new-product process that involves internal and external evaluations of a product 1. Internal approach- Internally, the firm evaluates the technical difficulty of the proposal and whether the idea meets the objectives defined in the new-product strategy step 2. External approach- preliminary testing of the new product idea to consumers. Frito Lay spent a year interviewing 10,000 customers before coming out with Sun Chips iv. Business Analysis- specifying features of the product and the marketing strategy needed to commercialize it…Bringing it to market and making necessary financial projections.
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