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28 Cards in this Set
- Front
- Back
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two ways firm can obtain new products
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Acquisition
New Product |
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NEW PRODUCT DEVELOPMENT PROCESS
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Idea Generation
Idea Screening Concept development and testing marketing strategy concept Business Analysis Product Development Test Marketing Commercialization |
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Idea generation
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systematic search for new product ideas
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Sources of idea generation?
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internal and external idea sources
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crowdsourcing
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inviting customers, employees, scientists, and even public for new ideas
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Idea Screening
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screening ideas to keep good ones and drop bad ones
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R-W-W Screening framework
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is it REAL?
can we WIN? is it WORTH doing? |
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Concept development and testing
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find out concept and see which is most attractive and test it to target customers
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Product concept
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detailed version of new product idea
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concept testing
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testing new product concepts with group of target customers
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Market Strategy concept
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designing initial market strategy to market
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Three elements of market strategy statement
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target market and planned profit goals
value preposition (price, budget) sales and long term goals |
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Business Analysis
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review of sales, costs, and profit projections to find out whether needs were satisfied or not
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Product Development
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involves creating and testing of one or more physical versions by R&D
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Pros and Cons of product development
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+shows if product idea is workable
-need to increase investments |
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Test Marketing (three types)
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product is introduced to realistic market
- Standard test market - Controlled test market - simulated test market |
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Standard test market
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small representative markets
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Controlled test market
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panels of stores carry product for free
(less competitive, but competitors can have access to the products) |
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Simulated test market
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create shopping environment and see how many customers pick up the new product of the company
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Commercialization
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introducing new product to market
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What must be considered to commercialize?
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timing
where? planned market rollout |
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MANAGING NEW PRODUCT DEVELOPMENT
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Customer centered new-product-development
Team based NPD Systematic NPD NPD in turbulent times |
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Customer centered new product development
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focuses on finding new ways to solve customer problems and increase satisfaction
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Team based new product development
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company departments working closely together to save time and increase effectiveness
(it's quick but could cause tension) |
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Systematic new product development
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innovation management system that manages new product ideas
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new product development in turbulent times
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tough times might call for greater NPD
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PRODUCT LIFE CYCLE STRATEGIES
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Introduction
growth stage maturity stage decline stage |
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three graphs of product life cycle
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up down up down graph --> style
up and down --> fashion quickly up and quickly down --> FAD |
