Podcast
Questions and Answers
A detailed business plan is prepared during the concept development phase.
A detailed business plan is prepared during the concept development phase.
False (B)
The product/service desirability is assessed during the industry/market feasibility analysis.
The product/service desirability is assessed during the industry/market feasibility analysis.
False (B)
Fatal flaws in the business idea are identified during the organization feasibility analysis.
Fatal flaws in the business idea are identified during the organization feasibility analysis.
False (B)
The cost incurred during NPD is recovered only after the sales exceed the development costs.
The cost incurred during NPD is recovered only after the sales exceed the development costs.
A business opportunity is a revenue-generating product.
A business opportunity is a revenue-generating product.
The product concept includes a clear description of the product's features.
The product concept includes a clear description of the product's features.
The linear NPD model involves interdependent projects.
The linear NPD model involves interdependent projects.
The target market attractiveness is assessed during the organization feasibility analysis.
The target market attractiveness is assessed during the organization feasibility analysis.
The concept generation stage involves translating the selected idea into a physical product or a new feature.
The concept generation stage involves translating the selected idea into a physical product or a new feature.
The product life cycle indicates that the demand for a product will always increase over time.
The product life cycle indicates that the demand for a product will always increase over time.
Concurrent engineering is an example of a market-based approach to product development.
Concurrent engineering is an example of a market-based approach to product development.
The idea screening and selection stage involves identifying business opportunities for new products.
The idea screening and selection stage involves identifying business opportunities for new products.
The product development stage involves testing and launching the new product to markets.
The product development stage involves testing and launching the new product to markets.
The product introduction stage is the first stage of the NPD process.
The product introduction stage is the first stage of the NPD process.
The NPD process is a one-time event that occurs only once in a product's life cycle.
The NPD process is a one-time event that occurs only once in a product's life cycle.
Screening involves identifying business opportunities for new products.
Screening involves identifying business opportunities for new products.
Lead users are not willing to participate in evaluating emerging concepts
Lead users are not willing to participate in evaluating emerging concepts
A minor change to a product's packaging does not lead to a new product
A minor change to a product's packaging does not lead to a new product
Introducing a new smell of a detergent does not produce a new product
Introducing a new smell of a detergent does not produce a new product
Lead users are not passionate about product improvement
Lead users are not passionate about product improvement
New products are always immediately accepted by customers
New products are always immediately accepted by customers
A new product can only be introduced if it has a completely new design
A new product can only be introduced if it has a completely new design
Lead users are not the first to buy products
Lead users are not the first to buy products
Introducing the same product with a new size, but with the same features, is not considered a new product in the food industry
Introducing the same product with a new size, but with the same features, is not considered a new product in the food industry
Fax machines were initially accepted by consumers due to their obvious application.
Fax machines were initially accepted by consumers due to their obvious application.
Dyson bagless vacuum cleaner was a success from the start due to its innovative design.
Dyson bagless vacuum cleaner was a success from the start due to its innovative design.
Chryslers Cruiser was initially expected to be a huge success in the market.
Chryslers Cruiser was initially expected to be a huge success in the market.
Educating customers about new products is not necessary for their success.
Educating customers about new products is not necessary for their success.
The level of technical activities is the same across all industries during NPD.
The level of technical activities is the same across all industries during NPD.
I-pod's success can be attributed to its poor marketing campaign.
I-pod's success can be attributed to its poor marketing campaign.
Microcomputers were initially accepted by consumers due to their predicted uses.
Microcomputers were initially accepted by consumers due to their predicted uses.
Creating a competitive position is not achieved by introducing totally new products to the market.
Creating a competitive position is not achieved by introducing totally new products to the market.
Product failure occurs when customers are aware of its value but refuse to buy it.
Product failure occurs when customers are aware of its value but refuse to buy it.
Integrating customers in each stage of NPD is important to define their needs accurately.
Integrating customers in each stage of NPD is important to define their needs accurately.
S-NPD strategy involves introducing a new product that considers sustainability criteria only at the production stage.
S-NPD strategy involves introducing a new product that considers sustainability criteria only at the production stage.
Reducing material consumption is a key advantage of adopting S-NPD strategy.
Reducing material consumption is a key advantage of adopting S-NPD strategy.
Adopting S-NPD strategy can increase sales due to the attractiveness of green products.
Adopting S-NPD strategy can increase sales due to the attractiveness of green products.
S-NPD strategy focuses on minimizing positive impacts on society and the environment.
S-NPD strategy focuses on minimizing positive impacts on society and the environment.
The primary goal of S-NPD strategy is to reduce operation costs.
The primary goal of S-NPD strategy is to reduce operation costs.
Tax incentives are a direct result of reducing energy consumption in S-NPD strategy.
Tax incentives are a direct result of reducing energy consumption in S-NPD strategy.
What characteristic of lead users makes them an ideal source of information for NPD?
What characteristic of lead users makes them an ideal source of information for NPD?
How can introducing a new smell of a detergent be considered a new product in some industries?
How can introducing a new smell of a detergent be considered a new product in some industries?
What is the primary reason why some new products are initially rejected by customers but later become successful?
What is the primary reason why some new products are initially rejected by customers but later become successful?
In which industry is introducing the same product with a new size, but with the same features, commonly considered a new product?
In which industry is introducing the same product with a new size, but with the same features, commonly considered a new product?
What is a key characteristic of lead users in terms of their behavior towards new products?
What is a key characteristic of lead users in terms of their behavior towards new products?
What is the primary goal of introducing a new product with a new design, in terms of resource allocation?
What is the primary goal of introducing a new product with a new design, in terms of resource allocation?
How can lead users contribute to the NPD process, in terms of identifying future opportunities?
How can lead users contribute to the NPD process, in terms of identifying future opportunities?
What is the primary benefit of involving lead users in the NPD process, in terms of product development?
What is the primary benefit of involving lead users in the NPD process, in terms of product development?
What is the primary goal of the new product development process, and how does it relate to generating profits?
What is the primary goal of the new product development process, and how does it relate to generating profits?
What is the significance of market research in the new product development process, and why is it essential?
What is the significance of market research in the new product development process, and why is it essential?
What is the role of customers in the new product development process, and why is it important to integrate them in each stage?
What is the role of customers in the new product development process, and why is it important to integrate them in each stage?
What is the difference between a new product and a product with a minor change, and how does it relate to the concept of innovation?
What is the difference between a new product and a product with a minor change, and how does it relate to the concept of innovation?
What are the consequences of product failure, and how can it be avoided through the NPD process?
What are the consequences of product failure, and how can it be avoided through the NPD process?
What is the role of sustainability in the new product development process, and how does it relate to the concept of S-NPD strategy?
What is the role of sustainability in the new product development process, and how does it relate to the concept of S-NPD strategy?
What are the primary objectives of managing and growing a firm during the organization feasibility analysis?
What are the primary objectives of managing and growing a firm during the organization feasibility analysis?
What are the key stages of the new product development process, and how do they relate to each other?
What are the key stages of the new product development process, and how do they relate to each other?
What are the key factors that influence the product/service desirability during the industry/market feasibility analysis?
What are the key factors that influence the product/service desirability during the industry/market feasibility analysis?
What is the significance of educating customers about new products, and how does it relate to the success of new products?
What is the significance of educating customers about new products, and how does it relate to the success of new products?
What is the primary role of customers in the idea generation stage of NPD?
What is the primary role of customers in the idea generation stage of NPD?
How do customers contribute to the idea screening and selection stage of NPD?
How do customers contribute to the idea screening and selection stage of NPD?
What is the primary goal of the detailed business plan prepared during the concept development phase?
What is the primary goal of the detailed business plan prepared during the concept development phase?
What is the key issue in involving customers in the product development stage of NPD?
What is the key issue in involving customers in the product development stage of NPD?
How does the cost/profit relationship work during the NPD process?
How does the cost/profit relationship work during the NPD process?
What is the primary purpose of identifying fatal flaws during the organization feasibility analysis?
What is the primary purpose of identifying fatal flaws during the organization feasibility analysis?
What is the primary goal of involving customers in the product introduction stage of NPD?
What is the primary goal of involving customers in the product introduction stage of NPD?
Why is it important to be careful in selecting customers for involvement in the NPD process?
Why is it important to be careful in selecting customers for involvement in the NPD process?
What is the key difference between a business opportunity and a product concept?
What is the key difference between a business opportunity and a product concept?
What is the primary purpose of product development stage during the NPD process?
What is the primary purpose of product development stage during the NPD process?
What is the role of customers in the NPD process beyond providing ideas and feedback?
What is the role of customers in the NPD process beyond providing ideas and feedback?
What is the benefit of involving customers in the NPD process?
What is the benefit of involving customers in the NPD process?
What is the primary advantage of adopting S-NPD strategy during the NPD process?
What is the primary advantage of adopting S-NPD strategy during the NPD process?
What is the critical component of customer involvement in the NPD process?
What is the critical component of customer involvement in the NPD process?
What is the primary reason for product failure in the market?
What is the primary reason for product failure in the market?
What is the main goal of adopting a Sustainable New Product Development (S-NPD) strategy?
What is the main goal of adopting a Sustainable New Product Development (S-NPD) strategy?
What are some benefits of adopting an S-NPD strategy?
What are some benefits of adopting an S-NPD strategy?
Why is it essential to integrate customers in each stage of New Product Development (NPD)?
Why is it essential to integrate customers in each stage of New Product Development (NPD)?
What is the significance of finding the right communication channel with customers in NPD?
What is the significance of finding the right communication channel with customers in NPD?
What is an example of a sustainability criterion in S-NPD strategy?
What is an example of a sustainability criterion in S-NPD strategy?
What is the consequence of not considering sustainability criteria in NPD?
What is the consequence of not considering sustainability criteria in NPD?
What is the advantage of adopting S-NPD strategy in terms of sales?
What is the advantage of adopting S-NPD strategy in terms of sales?
What is the primary objective of managing and growing the firm during the organization feasibility analysis?
What is the primary objective of managing and growing the firm during the organization feasibility analysis?
What is the key element in describing the end state of a product or service during the industry/market feasibility analysis?
What is the key element in describing the end state of a product or service during the industry/market feasibility analysis?
What is the primary purpose of identifying fatal flaws in the business idea during the detailed business plan preparation?
What is the primary purpose of identifying fatal flaws in the business idea during the detailed business plan preparation?
How does the product lifecycle impact the product/service desirability during the industry/market feasibility analysis?
How does the product lifecycle impact the product/service desirability during the industry/market feasibility analysis?
What is the primary role of customers in the business development plan during the NPD process?
What is the primary role of customers in the business development plan during the NPD process?
What is the key difference between a product concept and a business opportunity during the concept development phase?
What is the key difference between a product concept and a business opportunity during the concept development phase?
What is the primary objective of the linear NPD model in terms of cost and profit?
What is the primary objective of the linear NPD model in terms of cost and profit?
What is the primary advantage of preparing a detailed business plan during the concept development phase?
What is the primary advantage of preparing a detailed business plan during the concept development phase?
What is the significance of involving customers in each stage of the new product development process, and how does it relate to defining their needs accurately?
What is the significance of involving customers in each stage of the new product development process, and how does it relate to defining their needs accurately?
What are the key issues in involving customers as a resource for many ideas during the idea generation stage of NPD?
What are the key issues in involving customers as a resource for many ideas during the idea generation stage of NPD?
How do customers contribute to the product development stage of NPD, and what are the benefits of their involvement?
How do customers contribute to the product development stage of NPD, and what are the benefits of their involvement?
What are the key issues in involving customers as co-creators during the idea screening and selection stage of NPD?
What are the key issues in involving customers as co-creators during the idea screening and selection stage of NPD?
Why is it essential to be careful in selecting customers for involvement in the NPD process, and what are the consequences of not doing so?
Why is it essential to be careful in selecting customers for involvement in the NPD process, and what are the consequences of not doing so?
What is the role of customers during the product introduction stage of NPD, and how does it relate to verifying product features and testing product performance?
What is the role of customers during the product introduction stage of NPD, and how does it relate to verifying product features and testing product performance?
What are the benefits of involving customers in the NPD process, and how does it relate to creating a competitive position in the market?
What are the benefits of involving customers in the NPD process, and how does it relate to creating a competitive position in the market?
What is the significance of customers as users during the product introduction stage of NPD, and how does it relate to building customer service centers?
What is the significance of customers as users during the product introduction stage of NPD, and how does it relate to building customer service centers?
What is the characteristic of lead users that makes them an ideal source of information for new product development?
What is the characteristic of lead users that makes them an ideal source of information for new product development?
How do customers contribute to the identification of future opportunities in new product development?
How do customers contribute to the identification of future opportunities in new product development?
What is the significance of educating customers about new products, and how does it relate to the success of new products?
What is the significance of educating customers about new products, and how does it relate to the success of new products?
How does the concept of new product vary across different industries, and what are some examples of new products in different industries?
How does the concept of new product vary across different industries, and what are some examples of new products in different industries?
What are some common reasons why new products are initially rejected by customers, but later become successful?
What are some common reasons why new products are initially rejected by customers, but later become successful?
What is the primary benefit of involving lead users in the new product development process, in terms of product development?
What is the primary benefit of involving lead users in the new product development process, in terms of product development?
How can introducing a new smell of a detergent be considered a new product in some industries, and what are the implications of this?
How can introducing a new smell of a detergent be considered a new product in some industries, and what are the implications of this?
What is the role of customers in the new product development process, and why is it important to integrate them in each stage?
What is the role of customers in the new product development process, and why is it important to integrate them in each stage?
What is a major challenge faced by companies when introducing new products, and how can they overcome it?
What is a major challenge faced by companies when introducing new products, and how can they overcome it?
Why is it essential for companies to educate customers about the value of new products, and what is an example of a successful product that was initially rejected?
Why is it essential for companies to educate customers about the value of new products, and what is an example of a successful product that was initially rejected?
What is the significance of introducing new products to the market, and how can it affect a company's competitive position?
What is the significance of introducing new products to the market, and how can it affect a company's competitive position?
What is an example of a product that was initially successful due to a robust marketing campaign, and what were some key benefits of the product that were highlighted?
What is an example of a product that was initially successful due to a robust marketing campaign, and what were some key benefits of the product that were highlighted?
How does the level of technical activities vary across different industries during the new product development process, and what are some implications of this variation?
How does the level of technical activities vary across different industries during the new product development process, and what are some implications of this variation?
What is a key difference between the initial reaction of consumers to fax machines and microcomputers, and what does this difference suggest about the challenges of introducing new products?
What is a key difference between the initial reaction of consumers to fax machines and microcomputers, and what does this difference suggest about the challenges of introducing new products?
Why is it important for companies to be prepared for a potential initial rejection of new products, and what can they do to mitigate this risk?
Why is it important for companies to be prepared for a potential initial rejection of new products, and what can they do to mitigate this risk?
What is the relationship between educating customers about new products and the success of those products, and what are some implications of this relationship for companies?
What is the relationship between educating customers about new products and the success of those products, and what are some implications of this relationship for companies?
What are the potential consequences of not integrating customers in each stage of NPD, and how can it lead to product failure?
What are the potential consequences of not integrating customers in each stage of NPD, and how can it lead to product failure?
How does adopting S-NPD strategy contribute to the success of a new product, and what are the benefits of this approach?
How does adopting S-NPD strategy contribute to the success of a new product, and what are the benefits of this approach?
What are the key factors that influence the success of a new product, and how can they be addressed through the NPD process?
What are the key factors that influence the success of a new product, and how can they be addressed through the NPD process?
What are the advantages of adopting a sustainable approach to NPD, and how does it impact the environment and society?
What are the advantages of adopting a sustainable approach to NPD, and how does it impact the environment and society?
What are the key challenges of introducing a new product, and how can they be addressed through effective customer involvement?
What are the key challenges of introducing a new product, and how can they be addressed through effective customer involvement?
What are the benefits of reducing energy consumption and material usage in the NPD process, and how can it contribute to the success of a new product?
What are the benefits of reducing energy consumption and material usage in the NPD process, and how can it contribute to the success of a new product?
What are the consequences of not considering sustainability criteria in the NPD process, and how can it impact the success of a new product?
What are the consequences of not considering sustainability criteria in the NPD process, and how can it impact the success of a new product?
What are the key stages of the NPD process where customer involvement is crucial, and how can it impact the success of a new product?
What are the key stages of the NPD process where customer involvement is crucial, and how can it impact the success of a new product?
What are the key challenges in collecting reliable information from customers during the idea generation stage of NPD?
What are the key challenges in collecting reliable information from customers during the idea generation stage of NPD?
How do customers contribute to the ranking of ideas during the idea screening and selection stage of NPD?
How do customers contribute to the ranking of ideas during the idea screening and selection stage of NPD?
What is the role of customers in defining the final product design during the product development stage of NPD?
What is the role of customers in defining the final product design during the product development stage of NPD?
Why is it essential to select the right customers for involvement in the NPD process?
Why is it essential to select the right customers for involvement in the NPD process?
What are the key benefits of involving customers in each stage of the NPD process?
What are the key benefits of involving customers in each stage of the NPD process?
How do customers contribute to the verification of product features and testing of product performance during the product introduction stage of NPD?
How do customers contribute to the verification of product features and testing of product performance during the product introduction stage of NPD?
What are the key issues in involving customers as co-creators during the product development stage of NPD?
What are the key issues in involving customers as co-creators during the product development stage of NPD?
Why is it important to distinguish between existing and potential customers during the idea generation stage of NPD?
Why is it important to distinguish between existing and potential customers during the idea generation stage of NPD?
What are the primary stages involved in the NPD process, and how do they contribute to the development of a successful product?
What are the primary stages involved in the NPD process, and how do they contribute to the development of a successful product?
What is the significance of market research in the NPD process, and how does it impact the introduction of new products to customers?
What is the significance of market research in the NPD process, and how does it impact the introduction of new products to customers?
What are the benefits of adopting a sustainable approach to NPD, and how does it impact the environment and society?
What are the benefits of adopting a sustainable approach to NPD, and how does it impact the environment and society?
What is the role of customers in the NPD process, and how do they contribute to the development of successful products?
What is the role of customers in the NPD process, and how do they contribute to the development of successful products?
What are the consequences of product failure, and how can it be avoided through the NPD process?
What are the consequences of product failure, and how can it be avoided through the NPD process?
What is the significance of educating customers about new products, and how does it impact the success of new products?
What is the significance of educating customers about new products, and how does it impact the success of new products?
What is the primary difference between a product concept and a business opportunity, and how does it relate to the concept of innovation?
What is the primary difference between a product concept and a business opportunity, and how does it relate to the concept of innovation?
What is the role of lead users in the NPD process, and how do they contribute to the development of successful products?
What is the role of lead users in the NPD process, and how do they contribute to the development of successful products?
What is the primary purpose of the concept generation stage in the new product development process, and how does it relate to identifying business opportunities for new products?
What is the primary purpose of the concept generation stage in the new product development process, and how does it relate to identifying business opportunities for new products?
How does the product development stage differ from the product introduction stage in the new product development process, and what are the key activities involved in each stage?
How does the product development stage differ from the product introduction stage in the new product development process, and what are the key activities involved in each stage?
What is the significance of customer involvement in the new product development process, and how can it improve the chances of a new product's success?
What is the significance of customer involvement in the new product development process, and how can it improve the chances of a new product's success?
What is the role of technical development in the concurrent engineering approach to new product development, and how does it differ from the traditional approach?
What is the role of technical development in the concurrent engineering approach to new product development, and how does it differ from the traditional approach?
How does the product life cycle relate to the need for continuous new product development, and what are the consequences of not innovating?
How does the product life cycle relate to the need for continuous new product development, and what are the consequences of not innovating?
What is the significance of the idea screening and selection stage in the new product development process, and what are the key criteria used to evaluate ideas?
What is the significance of the idea screening and selection stage in the new product development process, and what are the key criteria used to evaluate ideas?
How does the linear new product development model differ from the concurrent engineering approach, and what are the advantages of each approach?
How does the linear new product development model differ from the concurrent engineering approach, and what are the advantages of each approach?
What is the role of strategic planning in the new product development process, and how does it relate to the commercialization stage?
What is the role of strategic planning in the new product development process, and how does it relate to the commercialization stage?
What is the significance of educating customers about new products, and how does it relate to the success of new products?
What is the significance of educating customers about new products, and how does it relate to the success of new products?
How can companies mitigate the risk of initial rejection of new products, and what is the importance of being prepared for this possibility?
How can companies mitigate the risk of initial rejection of new products, and what is the importance of being prepared for this possibility?
What is the relationship between the level of technical activities and the complexity of NPD processes across different industries?
What is the relationship between the level of technical activities and the complexity of NPD processes across different industries?
What are the characteristics of products that are initially rejected by customers but later become successful, and what can companies learn from these examples?
What are the characteristics of products that are initially rejected by customers but later become successful, and what can companies learn from these examples?
What is the significance of introducing totally new products to the market, and how does it relate to creating a competitive position?
What is the significance of introducing totally new products to the market, and how does it relate to creating a competitive position?
How do companies benefit from involving customers as co-creators during the idea generation stage of NPD, and what are the implications of this approach?
How do companies benefit from involving customers as co-creators during the idea generation stage of NPD, and what are the implications of this approach?
What are the implications of not integrating customers in each stage of the NPD process, and how can it lead to product failure?
What are the implications of not integrating customers in each stage of the NPD process, and how can it lead to product failure?
What is the significance of the Chrysler Cruiser's success in the industry, and what can companies learn from this example?
What is the significance of the Chrysler Cruiser's success in the industry, and what can companies learn from this example?
What are the key components of a Sustainable New Product Development (S-NPD) strategy that focus on minimizing negative impacts on society and environment?
What are the key components of a Sustainable New Product Development (S-NPD) strategy that focus on minimizing negative impacts on society and environment?
What are the consequences of not integrating customers in each stage of New Product Development (NPD), and how can it lead to product failure?
What are the consequences of not integrating customers in each stage of New Product Development (NPD), and how can it lead to product failure?
What is the primary advantage of adopting a Sustainable New Product Development (S-NPD) strategy, and how does it contribute to the success of a new product?
What is the primary advantage of adopting a Sustainable New Product Development (S-NPD) strategy, and how does it contribute to the success of a new product?
What are the key reasons why a new product may fail in the market, and how can they be avoided through the NPD process?
What are the key reasons why a new product may fail in the market, and how can they be avoided through the NPD process?
What is the significance of finding the right communication channel with customers in the NPD process, and how does it relate to defining their needs accurately?
What is the significance of finding the right communication channel with customers in the NPD process, and how does it relate to defining their needs accurately?
What are the key advantages of involving lead users in the NPD process, and how does it contribute to the success of a new product?
What are the key advantages of involving lead users in the NPD process, and how does it contribute to the success of a new product?
What are the key benefits of adopting a sustainable approach to NPD, and how does it impact the environment and society?
What are the key benefits of adopting a sustainable approach to NPD, and how does it impact the environment and society?
What is the primary role of customers in the business development plan during the NPD process, and how does it relate to creating a competitive position in the market?
What is the primary role of customers in the business development plan during the NPD process, and how does it relate to creating a competitive position in the market?
Study Notes
New Product Development (NPD)
- NPD is a part of the innovation process, where innovative ideas become real and tangible products.
- New products must generate profits to cover the initial cost.
Lead Users in NPD
- Lead users are the best source of information for NPD.
- They are the first to buy products, loyal and passionate about improvement.
- They generate creative ideas to improve the product, contribute to identifying future opportunities, and participate in evaluating emerging concepts.
New Product Interpretations
- The concept of a new product varies across different industries.
- A new product can be:
- A minor change (e.g., improve the strength of detergent).
- Adjusting the package (e.g., changing the size of a product).
- Introducing a new design.
- Introducing a new smell or feature.
Educating Customers
- Sometimes, new products are initially rejected by customers, but later become successful (e.g., fax machines, microcomputers, Dyson bagless vacuum cleaner).
- Firms should launch a robust marketing campaign to educate the mass market about the detailed value of the new product.
Customer Roles in NPD
- Customers should be included in every stage of NPD to ensure the product reflects their needs.
- Customer roles in NPD stages:
- Ideas generation: finding the right customer groups, motivating them, and capturing customer knowledge.
- Idea screening and selection: ranking ideas based on customer importance, choosing the best concept.
- Product development: involving customers in development tasks, defining product design, and features.
- Product introduction: verifying product features, testing product performance, and building customer service centers.
NPD Across Different Industries
- The level of technical activities in NPD varies across industries, with some experiencing more complicated processes.
- Examples of industries with different NPD processes: detergent, food, and phone industries.
Product Failure
- Product failure can occur when customers refuse to buy a product due to its unattractiveness, lack of awareness of its value, or failure to meet customer needs.
- Reasons for new product failure: poor customer integration, inadequate marketing, and failure to meet customer needs.
Adopting Sustainable NPD (S-NPD)
- S-NPD involves introducing a new product that considers sustainability criteria at each stage.
- Examples of sustainability criteria: reducing energy consumption, material consumption, and adopting recycling programs.
- Advantages of S-NPD: reducing operation costs, attracting new customers, and increasing sales.
Four Stages of NPD
- Stage 1: Idea generation and concept development.
- Stage 2: Product development and testing.
- Stage 3: Product launch and marketing.
- Stage 4: Product maintenance and improvement.
Product Life Cycle
- The demand for each product will decrease over time unless it is replaced by a newer version or features are added.
- NPD is a critical process for firms to stay in the market.
Feasibility Analysis
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Feasibility analysis is a critical step in the NPD process.
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It involves evaluating the technical, commercial, and business viability of a new product idea.### New Product Development (NPD)
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NPD is a critical process for firms to stay in the market, as it helps generate profits to cover initial costs.
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NPD involves four stages: idea generation, idea screening and selection, product development, and product introduction.
Educating Customers for New Products
- Introducing new products requires educating customers about their benefits and value.
- Examples of initially rejected products include fax machines, microcomputers, Dyson bagless vacuum cleaners, and the Chrysler Cruiser.
Customer Roles in NPD
- Customers should be involved in every stage of NPD to ensure the product reflects their needs.
- Customers can participate as resources for ideas, co-creators in product development, and users during product introduction.
NPD Across Different Industries
- The level of technical activities varies across industries, with some experiencing more complicated processes.
Product Failure
- Product failure occurs when customers refuse to buy a product due to a lack of attractiveness or alignment with their needs.
- Integrating customers into each stage of NPD and educating them about the product's value can prevent product failure.
Adopting Sustainable NPD (S-NPD) Strategy
- S-NPD involves introducing new products that consider sustainability criteria at each stage, focusing on minimizing negative impacts on society and the environment.
- Advantages of S-NPD include reducing operation costs, attracting new customers, and tax incentives.
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Test your understanding of business feasibility analysis, including organizational, industry, market, and product/service feasibility. Evaluate your knowledge of the key factors that determine a business's viability and growth potential.
