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14 Cards in this Set

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Why is research and development used?

-to come up with new ideas,products and processes


- usually businesses that want to innovate depend on it

what is R&D used for?

- to turn raw ideas into products and processes


-used to come up with new production methods


-comes up with new products to meet the customers needs.



innovation is risky but can produce great profits?

- coming up with a new innovative product will allow to you set a high price (price skimming) before competitor enter the market


-its builds a reputation for being innovative- customers will naturally go to them


-markets leaders often invest in R and d,they have a large product portfolio of products innovative new products and proven old products

innovation affects what goes on in other departments?



-finance


-marketing


-human resources

Finance

-R and D innovative products are expensive and they will need to raise extra capital


-innovation in production methods can mean more finance is spent on new capital.New machinery is expensive

Marketing

-increasing the amount of market research since innovative ideas risks and costs are higher


-innovative market can lead to big changes in the marketing mix,pricing strategies and promotional activities


human resources

-change in staffing needs,more skilled staff


-business needs to have the right culture for innovation to be successful,encouraging employees to takes risks

new product development has 6 stages these include?

-Idea


-analysis and screening


-development


-value analysis


-test marketing


-launch

idea in new product development?


where do ideas come from

-new ideas,developing existing ideas,modifying competitors ideas


-brain storming, r and d development,employee suggestion



analysis and screening

-can the product make profit?


-is there a potential market


-tech and resources are available exists to make it


-competitor has an similar idea or existing patient


-at this stage prototype can be made

Development

-develop a working prototype


-test it scientifically and tweak the design to make functional design

value analysis

-make good value for money


-for both the suppliers and customers


-look at cost of making warehousing and distributing

test marketing

-releases new product in a limited geographical area to analyse the customers feedback about,price,packaging and product


-modification to be made for the wider launch

launch

-successful launch requires enough stock to be distributed to different areas of the market.It also needs to be an effective promotional campaign in place to inform retailers and consumers about the product and persuade them to buy it.