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Chapter 10.in.class.discussion

Chapter 10.in.class.discussion - Chapter 10 Developing New...

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Chapter 10 Developing New Products and Services Today’s Learning Objectives - To teach students about NPD processes and creativity, how to execute each phenomenon more effectively, and underscore to student why NPD, creativity & innovation are so important. “Every morning in Africa, a gazelle wakes up. He knows he must run faster than the fastest lion, or be eaten. Every morning in Africa, a lion also wakes up. She knows she must outrun the slowest gazelle, or starve to death. In Africa, it doesn’t matter whether you are lion or a gazelle. When the sun comes up, you had best be ready to run.” ------- ---------- Are you are lion? Or, are you a gazelle? Creativity From Foreign Policy – “Prolonged good times encourage bad habits among corporations and consumers. The crash will stimulate creativity and the new thinking that comes from failure;” the years ahead are bound to replenish the stimulating intellectual capital that this country was one known for. Basic New Product Development Strategies You should accept as fact that most firms must develop a steady stream of new products and services, and sizeable percentages of the NP introductions must be successful, or else the firm will die, just like the shark that did not swim forward. Firms can generally develop/acquire new products (as well as entre to new market opportunities) through two methods; 1) Through outright acquisition – buy an entire company (whole), or the rights to a patent, of the license [rights] to produce someone else’s products a. A “buy” strategy 2) The other way is through new product development – this entails the development of a original products, product improvements, product modifications, and new brands through the firm’s own internal efforts” a. Those efforts can ensue through direct research & development, technological sources, internal marketing sources, direct NP teams, or outsourcing practices. 1
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b. At other times firms save money and presumably lower risk and effort by simply copying other competitor’s products. i. Not for nothing did the phrase “imitation is the sincerest form of flattery” enter the cultural lexicon. 1. A “make” strategy What happens during the New Product Development (NPD) process? When it comes to the NPD process, marketers strive to create new things (products or services) that have practical or perceptual value to targeted customers. Hopefully, the value that is delivered through those new products or services is different from and better than any other value(s) currently being marketed by any competitor firms. From the start, one does not always know exactly what those new products or services will end up being; because NPD is always based on an idea. (That’s where creativity comes in.) From the start, one does not exactly understand what the new thing is going to cost to make (although one should have a sense and a rough budget); From the start, one does not know exactly how those new things might be distributed or
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Chapter 10.in.class.discussion - Chapter 10 Developing New...

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