{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

B7 - Ch09_New product dev [Compatibility Mode]

B7 - Ch09_New product dev [Compatibility Mode] - 1 Chapter...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Chapter 9 New-Product Development and Product Life-Cycle Strategies Dr. Hoàng Thị Phương Thảo HCMC University of Economics 2 Original Products Original Products Product Improvements Product Improvements Product Modifications Product Modifications New Brands New Brands Acquired Companies Acquired Companies Acquired Patents Acquired Patents Acquired Licenses Acquired Licenses New-Product Development Strategies Strategies for Obtaining New Product Ideas 2 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 4 Improving New-Product Success • New product success depends on having a: – Unique superior product (one with higher quality, features, and value in use), & – Well-defined product concept (a defined target market, product requirements, and benefits). • To create successful new products, the company must: – understand its customers, markets and competitors, & – develop products that deliver superior value to customers. 3 5 Idea Generation Idea Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialization Major Stages in New-Product Development 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 4 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 – Development Time & Costs – Manufacturing Costs – Rate of Return • Then, the idea is evaluated against a set of general company criteria....
View Full Document

{[ snackBarMessage ]}

Page1 / 12

B7 - Ch09_New product dev [Compatibility Mode] - 1 Chapter...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online