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Unformatted text preview: BMKT 3331 FINAL EXAM 1. Where might a firm find new product ideas? A new product begins as someones idea. A firm typically generates a large number of ideas relative to the number of successful products introduced through both, internal and external sources. A study found that most of the best new product ideas come from employees, with customers, by watching them use existing products, suppliers, by asking the sales reps to collect anecdotes, and competitors contributing the other half. The Idea Generation is the initial stage of the new product development process. Since costs increase substantially as firms move from one step in the new product development process to the next, a firm must first weed out potential failures as early as possible without eliminating products that might be successful, and then a rigorous analysis should be conducted to evaluate products at each stage and to determine which warrant further attention can help firms be both productive and successful in developing new products. Second, there is a traditional approach to new product development that has been a functional linear process. Although the Idea Generation is the initial stage of the new product development process, there are six other stages which include, in order, Idea screening, Concept development and testing, Business Analysis, Prototype development, Test marketing and Commercialization. Also, technological developments can be a useful source of new product ideas, as well as by analyzing the products of competitors. 2. How can marketing research be utilized to enhance the chances of product success after launch? Marketing research goes on throughout the new product development process in order to decrease the percentage of new product failures. By tracking results and providing feedback, marketing research support can be utilized to enhance the chances of product success after launch. Applying Rollout studies, which are performed after the product has been introduced in the commercialization stage, like Awareness, attitude studies, Usage studies, Tracking studies, Product refinement tests and New advertising strategy tests, will assess consumer response to the new product and its marketing strategy. 3. One of the X-L Corporations products has been unprofitable for three consecutive quarters. Should the firm drop this product? Discuss. If the product has been unprofitable for three consecutive quarters, the firm should not drop this product. There are other choices that can be made during the Decline stage of the product life cycle other than dropping a product. Although it is a choices that can be made during the Decline stage of the product life cycle other than dropping a product....
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- Spring '11