mktg chp8

mktg chp8 - Marketing: An Introduction Chapter 8:...

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Marketing: An Introduction Chapter 8: New-Product Development and Product Life-Cycle Strategies New-Product Development Strategy Acquisition- buying a whole company, a patent, or a license to produce someone else’s product New-product development- the development of original products, product improvements, product modifications, and new brands through the firm’s own R&D efforts o Original products, product modifications, and new brands that the firm develops More than 90% of all new consumer products fail within 2 years o Company may overestimate market size, actual product may be poorly designed, incorrectly positioned, priced too high, or poorly advertised, costs of product development may have been higher then expected Idea Generation Idea generation- the systematic search for new-product ideas o Starts new product development Internal Idea Sources o Companies can find new ideas through research and development by own staff External Idea Sources o Good new-product ideas come from watching and listening to customers o Competitors can be a good source- watch ads to get clues about their new products, buy new product and analyze whether they should sell a similar product o Companies outsource some of their new-product innovation to outside developers o Idea management system- directs the flow of new ideas to a central point, where they can be collected, reviewed, and evaluated Idea Screening Idea screening- screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible Product development costs rise greatly in later stages, so the company wants to ahead only with the product ideas that will turn into profitable products Concept Development and Testing Product concept-
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mktg chp8 - Marketing: An Introduction Chapter 8:...

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