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39 Cards in this Set
- Front
- Back
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HOW CAN DESIGN BE DEFINED? |
Design has been defined as “the synthesis of technology and human needs into manufacturable products.” |
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WHAT IS THE ROLE OF DESIGN IN TECHNOLOGY-DRIVEN INNOVATION? |
The role of design is to modify the product so it can accommodate the performance characteristics. |
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WHAT IS THE ROLE OF DESIGNIN MARKET-DRIVEN INNOVATION? |
Design modifies the productso that it meets customer expectations. |
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WHAT ARE THE DIFFERENT PURPOSES FORWHICH A PRODUCT CAN BE DESIGNED? |
Design for speed to market Design for ease of manufacture Design for differentiation Design to meet customer needs Design to build or support corporate identity Design for the environment |
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WHAT IS A PRODUCTARCHITECTURE? |
The process by which a customer need is developed into a product design. |
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AT WHAT STEP OF THE PRODUCTARCHITECTURE PROCESS DO YOU DEFINE THE “CHUNKS” OR “MODULES?” |
At step 2 – cluster the schematic elements |
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WHAT ARE “DERIVATIVEPRODUCTS?” |
If chunks or modules can be replaced easily within the product architecture, “derivative products” can be made from the same basic platform as technology, market tastes, or manufacturing skills change. |
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WHAT ARE THE 2 TYPES OFPROTOTYPES? |
Comprehensive prototype: complete,fully-functioning, full-size product ready to be examined by customers(necessary to determine how well all the components fit together). Focused prototype: not fully functioning or developed, but designedto examine a limited number of performance attributes or features. |
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WHAT IS THE DIFFERENCEBETWEEN INDUSTRIAL DESIGNERS AND DESIGN ENGINEERS? |
Industrial designers are trained to develop aesthetics, structural integrity, and function. Design engineers are technical people who convert styling into product dimensions or specifications. |
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WHAT IS CO-LOCATION? |
Co-location = putting the various individuals or functional areas in close proximity (face-to-face). |
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WHAT IS PRODUCT USE TESTING? |
Product use testing (also called field testingor user testing) consists of testing the end user’s experience with the newitem under normal operating conditions. |
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WHAT ARE SOME TYPES OF USETESTING AND THEIR CHARACTERISTICS? |
Alpha testing: done in-house withemployees. Beta testing:short-term, done at the customer’s site. Gamma testing: long-term, the item is thoroughly evaluated by theend user. Done if beta testing doesn’t meet developer’s needs. |
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WHAT HAPPENS TO MARKETING’SROLE WHEN THE “I THINK WE’VE GOT IT” PHASE IS REACHED? |
Now, marketing’s roleincreases as marketing people “rev up” their operations |
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WHY DO FIRMS MANY TIMES GOWITH BETA TESTING INSTEAD OF GAMMA TESTING? |
Cost and time considerations; keeping ahead of competitors |
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WHAT ARE THE DIFFERENT WAYS IN WHICHA USER TEST CAN BE CONDUCTED? |
Monadic test: the respondent tests a single product for aperiod of time. Sequential monadic test: back-to-back monadic testswith the same respondent. Paired comparison test: use of the test product ismixed with a competitive product. Triangular comparison: similar to paired comparison, but with two competitive products versus one test product. |
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WHAT IS THE MOST EXPENSIVEAND RISKY STAGE OF THE NEW PRODUCT DEVELOPMENT PROCESS? |
Product commercialization often turns out to be the most expensive and risky part of the new products process due to the financial commitments to both production and marketing once the go-ahead is given. |
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WHAT ARE “STRATEGIC GIVENS? |
They are strategic decisions that may have already been made before we start the strategic launch planning. |
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WHAT ARE THE DIFFERENT TYPES OF STRATEGICPLATFORM DECISIONS? |
Permanent: “we are in to stay”Permanent, but as a bridge to other items -- e.g., platform strategy:“we are in to stay if we meet our goals” Temporary: given firms’ tendency to develop streams ofproducts, more and more new products are actually only temporary (examples:cereals or snacks tied to recent children’s movies or tv shows). |
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WHAT TYPE OF DEMAND WOULD YOU SEEK FOR A NEW-TO-THE-WORLD PRODUCT? FOR A PRODUCT IMPROVEMENT OR UPGRADE? FOR AN ENTRY INTO AN ESTABLISHED MARKET? |
Primary demand: for new-to-the-world product Replacement demand: for a product improvementor upgrade (new computer chip, new compact car). You want to achieve customermigration to the new version. Selective demand: for an entry into an established market.You want to draw market share away from the competition. |
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WHAT ARE THE FACTORS THAT AFFECT THEDIFFUSION OF AN INNOVATION? |
Relative advantage (google’s rapid acceptance by computer users) Compatibility (digital cameras are designed to be used much as film cameras) Complexity (apple newton’s handwriting recognition was found to be hard to use) Trialability (try a new gps system at low cost as an add-on with a rental car) Communicability (long-term benefits of a decay-preventing toothpaste are impossible to discern at time of purchase) |
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WHO ARE THE FIRST CUSTOMERS TO ADOPT A NEW PRODUCT? THE LAST? |
The first = innovators last = laggards |
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WHAT ARE THE DIFFERENT TYPES OF BRANDING STRATEGIES? |
Individual branding strategy • No p&g cleaning products carry the p&g name (tide, bold, mr. Clean, etc.) Umbrella (family) branding strategy • Kellogg’s uses corporate name as part of all cereal brands. Combination branding strategy • Kraft uses planters, di giorno, maxwell house as well as kraft in its brand names. |
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WHAT IS THE RELATIONSHIP BETWEEN THE LAUNCH CYCLE AND THE PRODUCT LIFE CYCLE? |
The launch cycle is anexpansion of the introductory stage of the plc |
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WHAT IS A PREANNOUNCEMENT? |
A planned sequence ofannouncements (usually subtle signaling). |
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WHAT IS THE BEACHHEAD IN THE LAUNCH CYCLE? WHAT MARKS ITS BEGINNING? |
Establishing thebeachhead = this refers to the heavy expenditure neededto overcome sales inertia (“getting the ball rolling”). The beachhead begins with the announcement. |
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WHAT IS A LEAN LAUNCH? |
Lean launch: flexible supply chain system allowing the firm to respondrapidly to sales changes |
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WHAT DOES POSTPONEMENT IN THE LEANLAUNCH CONSIST OF? WHAT ARE ITSTYPES? |
Postponement = refers to delaying finalization of product form and identity until late in the development process, and delaying commitment of inventory until the last possible moment. Two categories: - Time postponement: deploy inventory as late as possible. - Form postponement: lock in product design as late as possible. |
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WHAT IS USUALLY THE FIRST STEP TOWARDS ADOPTIONOF A NEW PRODUCT? |
Awareness of the product |
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WHAT ARE SOME OF THE WAYS THAT THEFIRM’S MARKETING PROGRAM CAN ENCOURAGE REPEAT PURCHASES BY CONSUMERS? |
- keep a ready supplyavailable for the buyer who wants to repeat - give long-term discounts- find new uses for theitem - provide continued service |
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WHAT WOULD BE A STRONG ARGUMENT FOR CONDUCTING MARKET TESTING LATER IN THE DEVELOPMENT CYCLE? |
The scope of learning and accuracy would be higher |
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WHAT EFFECT WOULD POSSIBLE COMPETITOR RETALIATION HAVE ON THE LENGTH OR DESIRABILITY OF MARKET TESTING? |
A very long period ofmarket testing would give competitors more opportunity to be the first tointroduce a competing product in the market |
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WHAT DOES THE PSEUDO SALEMETHOD OF MARKET TESTING CONSIST OF? |
The pseudo sale = asks the customer ifthey would buy the product if it were actually available. |
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WHAT DOES THE CONTROLLED SALE METHOD OF MARKET TESTING CONSIST OF? |
The controlled sale = the buyer must make apurchase, but it is conducted under controlled conditions. Itis still a research method because the product has not been released forgeneral sale. |
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WHAT DOES THE FULL SALEMETHOD OF MARKET TESTING CONSIST OF? |
The full sale = the firm has decided to fully market the product, but wants to do it on a limited basis to see if everything is working right. |
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WHAT DOES THE SIMULATEDTEST MARKET METHOD OF MARKET TESTING CONSIST OF? |
Consists of usingmathematical formulas to create a false buying situation and observing what thecustomer does. |
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WHAT IS MINIMARKET TESTING? |
- select a limited number of outlets -- each store is a minicity or “minimarket.” - do not use regular local tv or newspaper advertising, but chosen outlets can advertise it in its own flyers. - can do shelf displays, demonstrations. - use rebate, mail-in premium, or some other method to get names of purchasers for later follow-up. |
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WHAT IS TEST MARKETING? WHAT ARE ITS ADVANTAGES AND DISADVANTAGES? |
- Several test market cities are selected. - Product is sold into those cities in the regular channels and advertised at representative levels in local media. Advantages: - Risk reduction - Monetary risk - Channel relationships - Sales force morale - Strategic improvement - Marketing mix - Production facilities Disadvantages: - Cost ($1 mill+) - Time (9-12 months+) - Hurt competitive advantage - Competitor may monitor test market - Competitor may go national - Competitor can disrupt test market |
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WHAT IS A ROLLOUT? HOW IS IT DIFFERENT FROM TEST MARKETING? |
- Select a limited area of the country (one or several cities orstates, 25% of the market, etc.) And monitor sales of product there. Ifsuccessful, move to the next area, and so on (“limited marketing”). - Starting areas are not necessarily representative |
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WHAT ARE THE ACTIVITIES TAKING PLACE IN THE PRELAUNCH? |
- Training of sales and other promotional people- Building service capability- Arranging for stocking of the product at the reseller level- Putting out preannouncements |
