chapter 9 (i)

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Questions and Answers

What is the purpose of a company's internal social networks and intrapreneurial programs?

  • To encourage employees to develop new product ideas (correct)
  • To provide employees with a platform to share their ideas and feedback.
  • To promote collaboration and communication among employees.
  • To improve employee morale and productivity.

What is the primary benefit to an organization of having its employees develop new product ideas?

  • Increased employee morale
  • Access to a more innovative product pool (correct)
  • Improved product quality
  • Reduced development costs

How did Google's “20% time ” program benefit the company?

  • It led to a more cost-effective development process.
  • It improved employee communication.
  • It encouraged innovation and led to successful products. (correct)
  • It reduced employee workload.

What was the negative impact of “20% time” on Google employees?

<p>Increased employee workload (D)</p> Signup and view all the answers

What does the term “120% time” demonstrate about the impact of employee workload?

<p>Workload has increased beyond employees’ capacity. (D)</p> Signup and view all the answers

What is the main benefit of crowdsourcing?

<p>It helps companies to develop innovative products. (A)</p> Signup and view all the answers

What is a key feature of crowdsourcing programs?

<p>They are open to a diverse range of individuals and groups. (D)</p> Signup and view all the answers

Which of these is an example of a successful crowdsourcing initiative?

<p>A food company launching an online platform for fans to design new flavors. (A)</p> Signup and view all the answers

What is the primary goal of the Clever Container Challenge?

<p>To integrate smart technology into food storage solutions. (C)</p> Signup and view all the answers

What aspect of the Clever Container Challenge highlights its focus on practical innovation?

<p>The requirement for containers to be affordable and reusable. (C)</p> Signup and view all the answers

Which of these is NOT a key attribute of successful crowdsourcing initiatives?

<p>Providing substantial financial rewards to all participants. (C)</p> Signup and view all the answers

What does the example of Tupperware's Clever Container Challenge demonstrate about crowdsourcing?

<p>Crowdsourcing can be used to innovate in established industries. (A)</p> Signup and view all the answers

What does the content suggest about the future of crowdsourcing?

<p>Crowdsourcing will become an increasingly common and important part of innovation processes. (C)</p> Signup and view all the answers

What does the term "product concept" refer to?

<p>A detailed description of a product idea that is relevant to the consumer. (C)</p> Signup and view all the answers

What is the most significant challenge that HondaJet faced when entering the business jet market?

<p>Developing a unique product feature to differentiate itself from competitors. (D)</p> Signup and view all the answers

What impact did the COVID-19 pandemic have on the commercial airline industry?

<p>It led to a significant decrease in passenger numbers, creating challenges for airlines. (D)</p> Signup and view all the answers

What is the significance of Honda’s reputation in the motorcycle and automobile industry for HondaJet?

<p>It helps with marketing efforts by leveraging existing brand recognition. (C)</p> Signup and view all the answers

What is the "product image" of the HondaJet Elite?

<p>A high-performance, technologically advanced, and stylish aircraft. (C)</p> Signup and view all the answers

How does the HondaJet Elite's striking over-the-wing mounted dual engines contribute to its appeal?

<p>They give the aircraft a unique and distinctive look. (D)</p> Signup and view all the answers

What is the main purpose of "concept development"?

<p>Turning a product idea into a concrete plan for development. (D)</p> Signup and view all the answers

What does the passage suggest is the potential opportunity for HondaJet within the context of the COVID-19 pandemic?

<p>An increase in demand for private jets due to concerns about public health. (D)</p> Signup and view all the answers

When might a company choose to conduct a test market for a new product?

<p>When the product is entirely new and there is uncertainty about its market potential (D)</p> Signup and view all the answers

What was McDonald's approach to testing its McPlant burger?

<p>They conducted extensive and costly standard test markets (A)</p> Signup and view all the answers

Which of these is NOT a factor that might lead a company to shorten or skip test marketing?

<p>A desire to gather extensive market feedback (C)</p> Signup and view all the answers

Which of these is an example of a company using a controlled test market?

<p>A retailer introducing a new product to a small group of stores before a wider launch (D)</p> Signup and view all the answers

According to the example of Starbucks, what is a key advantage of a rapid launch strategy?

<p>It can be essential for taking advantage of emerging trends (D)</p> Signup and view all the answers

What is the primary difference between controlled test markets and simulated test markets?

<p>Controlled test markets are conducted in retail settings, while simulated test markets are not (D)</p> Signup and view all the answers

What does Starbucks' chief digital officer's statement reveal about their approach to innovation?

<p>They prioritize speed and adaptability over perfection (C)</p> Signup and view all the answers

What is a potential downside to shortening or skipping test marketing?

<p>It can increase the risk of releasing a product with flaws or that fails to meet market demand (B)</p> Signup and view all the answers

What is the primary purpose of Area 120?

<p>To encourage and support employees in developing new business ideas. (D)</p> Signup and view all the answers

What is a significant outcome of Area 120's initiative?

<p>The creation of a new Google product called 'Tables'. (D)</p> Signup and view all the answers

Which of the following is NOT a project that has been spun off from Area 120?

<p>Google Cloud (D)</p> Signup and view all the answers

What is a key characteristic of Facebook's internal hackathons?

<p>They involve intensive coding sessions, often lasting through the night. (C)</p> Signup and view all the answers

What is the main goal of internal hackathons in companies like Facebook and Google?

<p>To generate new ideas and potential products for the company. (C)</p> Signup and view all the answers

How does Area 120 differ from a typical hackathon?

<p>Area 120 focuses on developing long-term projects, while hackathons are usually short-term events. (B)</p> Signup and view all the answers

Based on the information provided, what is a likely outcome of successful projects from Area 120?

<p>The projects will be integrated into existing Google products or services. (A)</p> Signup and view all the answers

What is a possible reason why Google and Facebook invest in internal hackathons?

<p>To develop new products and stay ahead of the competition. (B)</p> Signup and view all the answers

What is the primary purpose of the product development stage?

<p>To create a working prototype of the product. (D)</p> Signup and view all the answers

Which of the following activities is NOT typically involved in product development?

<p>Market research and analysis (B)</p> Signup and view all the answers

What is the significance of a successful prototype in product development?

<p>It demonstrates that the product idea can be translated into a workable product. (C)</p> Signup and view all the answers

Which of the following factors can influence the duration of the product development stage?

<p>Complexity of the product and prototype methods. (A)</p> Signup and view all the answers

What is the primary goal of R&D in the product development stage?

<p>To design a prototype that meets consumer expectations and production requirements. (C)</p> Signup and view all the answers

What is the relationship between the product development stage and the financial attractiveness of a product?

<p>The success of the product development stage directly impacts the financial attractiveness of the product. (B)</p> Signup and view all the answers

What happens to a product concept if it fails the business test?

<p>It is shelved and may be revisited later. (A)</p> Signup and view all the answers

What is the main difference between a product concept and a prototype?

<p>A prototype is a tangible product, while a product concept is an idea. (B)</p> Signup and view all the answers

Flashcards

Internal R&D processes

Company procedures for research and development that occur within the organization.

Employees' input

Gathering ideas from various staff members to foster innovation.

Area 120

Google's program allowing employees to work on personal projects during company time.

20% time program

A policy that permits employees to dedicate 20% of their time to personal initiatives that can benefit the company.

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120% time phenomenon

When employees spend more than the intended time on innovative projects, turning personal projects into extra hours.

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Project pitches

Ideas proposed by employees for potential new projects.

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Successful projects

Projects that have emerged from Area 120 like Tables and Byteboard.

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Hackathons

Intensive sessions where employees create and develop new ideas.

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Tables

A collaborative database program developed by Google.

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Byteboard

A platform for interviewing software engineers with real-life examples.

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Stack

An app that converts physical information into digital insights.

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AdVR

A platform for managing advertisements in virtual reality.

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Crowdsourcing

The practice of engaging a large group for ideas or services.

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Open innovation

Collaboration with external sources for product development.

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Innovation process

Steps involved in creating and implementing new ideas.

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Customer engagement

Involving customers in the development of new products.

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Unexpected ideas

Innovative concepts that arise from diverse input sources.

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Do the World a Flavor

Ben & Jerry's campaign for fans to create flavors.

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Clever Container Challenge

A contest for innovative food container ideas using IoT.

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Broad communities

Diverse groups involved in the innovation process.

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Product Idea

An idea for a potential product meaningful to consumers.

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Product Concept

A detailed version of a product idea expressed for consumer understanding.

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Product Image

How consumers perceive an actual or potential product.

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Concept Development

The process of turning an idea into a practical product proposal.

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HondaJet Elite

A popular dual-engine business jet created by Honda Aircraft Company.

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Market Launch

The introduction of a new product into the market.

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Consumer Perception

The way consumers view or interpret a product's value and function.

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Business Opportunities

Potential market benefits arising from challenges or changes in the industry.

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Test marketing

A process to evaluate a product's market potential before full launch.

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Low-cost product development

Situations where product creation is inexpensive, reducing test marketing need.

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Starbucks mobile payment app

A product that was quickly launched and refined post-launch.

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Controlled test markets

Testing products among specific groups to assess market reactions.

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Simulated test markets

Using simulations to predict how new products will perform in real markets.

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Market adaption speed

The pace at which businesses respond to market changes and trends.

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Impact assessment

Evaluating the effectiveness of marketing strategies during testing.

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Innovation vs perfection

Choosing to innovate rapidly instead of waiting for a perfect product.

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Sales forecast

A prediction of future product sales based on market analysis.

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Cost estimation

Calculating expected costs associated with product development including marketing and R&D.

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Financial attractiveness

The evaluation of whether a product is likely to be profitable based on cost and sales forecasts.

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R&D involvement

Research and Development's role in creating and testing product prototypes.

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Prototype development

Creating a working model of a product to test and refine its design.

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Investment jump

Significant increase in resources required to turn a concept into a market-ready product.

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Consumer satisfaction

The goal of developing prototypes that meet consumer needs and desires.

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Study Notes

Developing New Products and Managing the Product Life Cycle

  • Companies develop new products through internal sources (research and development) and external sources (customers, competitors, distributors, and suppliers).

  • New product development is a systematic process with various stages: idea generation, idea screening, concept development and testing, marketing strategy development, and commercialization.

  • Idea generation involves brainstorming many ideas, both internally and externally.

  • Idea screening evaluates potential ideas for feasibility, market fit, and profitability.

  • Concept development refines the chosen idea into a product or service concept that better targets the consumer.

  • Marketers test the concept by getting consumer feedback in a test market setting.

  • Marketing strategies are tailored to each stage of the product life cycle (PLC), which typically includes Introduction, Growth, Maturity, and Decline stages.

  • During the introduction stage, profits are low due to high costs.

  • In the growth phase, sales increase dramatically, and profits rise.

  • The maturity stage is characterized by slowing growth and maintaining high market share.

  • During the decline stage, sales decrease, profits fall, and companies often reduce resources assigned to the product.

  • Key Considerations in Product Development Include:

    • Socially responsible product decisions (considering the ecological and environmental impact)
    • International product and services marketing (marketing globally)

  • Companies often use crowdsourcing to solicit ideas from various groups, including customers, experts, and the public at large, to gain diverse perspectives and insights.

  • Learning from other competitors, suppliers, and distributors, as well as from external sources, is also helpful for innovation.

  • A product can be repurposed and relaunched in a new market

  • Unbundling existing offerings can create new products.

  • Companies often create internal incubators, such as Google's Area 120, for experimentation.

  • Test marketing is used to refine a product and its marketing strategy before a full launch.

  • Strategic collaboration across various teams can lead to innovative solutions.

  • Strong customer-centered new product development plays a decisive role in creating successful product offerings.

  • Successful new products are considered those that provide value to consumers and are well-differentiated from other existing products.

  • Companies should avoid making new product development a one-off activity, but it should instead be an integrated part of their organizational strategy

  • Companies need to understand their consumers' needs and preferences to develop new products that fulfill these needs.

  • The company should strive to be customer-centered to develop products that can fulfill consumer needs and increase profitability.

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