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Unformatted text preview: even steps of the new-product development process.
KEY: CB&E Model Product New-product strategy
OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 3. Discuss five sources of new-product ideas. What are some techniques could be used to stimulate
creative thinking for new-product ideas?
The chapter discusses several sources of ideas: customers, employees, distributors, vendors,
competitors, research and development, and consultants. The two approaches considered most
useful for generating new-product ideas are brainstorming and focus group exercises.
KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 4. Describe the idea screening stage of the new-product development process. Describe a common
test used during the screening stage.
The screening process is used as an initial filter to eliminate new-product ideas that are
inconsistent with the organization’s new-product strategy or are inappropriate for some other
reason. The review is usually done by a group formally appointed to screen new-product ideas.
Most of the ideas are rejected at this stage.
Concept tests are often used at the screening stage to evaluate product concept alternatives. These
tests can be good predictors of early trial and repeat purchases for line extensions. They are not as
accurate in predicting the success of new products that create new consumption patterns and require major changes in consumer behavior.
KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 5. New-product ideas that survive the initial screening process move to the business analysis stage.
List five of the many questions that are commonly asked during this stage.
What is the likely demand for the product?
What impact would the new product probably
have on total sales, profits, market share, and
return on investment?
How would the introduction of this product
affect existing products? Would it cannibalize
Would current customers benefit from the
Would the product enhance the image of the
company’s overall product mix?
Would the product affect current employees in
any way? Would it lead to hiring more people
or reducing the size of the workforce?
What new facilities, if any, would be needed?
How might competitors respond?
What is the risk of failure? Is the company
willing to take the risk?
KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 6. After successful business analysis of a new product, the development stage begins. Describe the
development process and explain the difference between laboratory testing and use testing.
While a prototype product is being physically developed by the research and development or
engineering department, the marketing departme...
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This document was uploaded on 09/29/2013.
- Fall '13