kotcha09 - Chapter9 NewProductDevelopmentand...

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1     Chapter 9 New-Product Development and  Product Life-Cycle Strategies
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2 Original  Products Product Improvements Product Modifications New Brands Acquired Companies Acquired  Patents Acquired Licenses New-Product Development Strategies Strategies for Obtaining New Product Ideas
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3 Causes of New Product  Failures One study estimated that as many as 80% of new  consumer packaged products failed. Only about 40% of new consumer products are  around 5 years after introduction. Why? Overestimation of market size, Product design problems, Product incorrectly positioned, priced or advertised, Product may have been pushed despite poor marketing  research findings, Costs of product development, or Competitive actions
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4 Improving New-Product  Success New product success depends on having a: Unique superior product (one with higher quality,  Well-defined product concept (a defined target market,  product requirements, and benefits). To create successful new products, the company  must: develop products that deliver superior value to  customers.
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5 Idea Generation Idea Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization Major Stages in New-Product  Development (Fig. 9.1)
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6 Customers Competitors Distributors Suppliers Idea Generation   is the Systematic Search for New  Product Ideas Obtained Internally From Employees  and Also From: New Product Development Process   Step 1.  Idea Generation
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7 New Product Development  Process  Step 2.  Idea Screening Process to spot good ideas and drop poor ones  as soon as possible.  Many companies have systems for rating and  screening ideas which estimate:  Market Size  Product Price  Manufacturing Costs  Rate of Return Then, the idea is evaluated against a set of  general company criteria.
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8 1.  Develop New  Product Ideas  into Alternative Detailed Product Concepts 2.   Concept Testing  - Test the New Product Concepts with 
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kotcha09 - Chapter9 NewProductDevelopmentand...

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