New Product Development Process

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary goal of idea generation in the new product-development process?

To drop poor product ideas

To develop a detailed product concept

To test the product with target consumers

To identify good product ideas (correct)

What is the purpose of idea screening in the new product-development process?

To test the product with target consumers

To develop a detailed product concept

To spot good ideas and drop poor ones (correct)

To generate new product ideas

What is a product concept in the new product-development process?

A detailed version of the new product idea stated in technical terms

A rough sketch of the new product idea

A sample of the new product

A detailed version of the new product idea stated in meaningful consumer terms (correct)

What is a key challenge associated with innovation?

High risk and expensive Signup and view all the answers

What is an external idea source in the new product-development process?

Distributors and suppliers Signup and view all the answers

What is the purpose of concept testing in the new product-development process?

To test the product concept with target consumers Signup and view all the answers

What is a key consideration in idea screening?

Is there a real need or desire for the product? Signup and view all the answers

What is an example of a target market for a product?

Younger, well-educated, moderate to high-income individuals, couples, and small families Signup and view all the answers

What is the purpose of new product development?

To create original products, product improvements, and modifications Signup and view all the answers

Which stage of the product life cycle requires changing marketing strategies?

Maturity stage Signup and view all the answers

What is the primary focus of a customer-centered culture in new product development?

Focusing on solving customer problems Signup and view all the answers

What is the outcome of overlapping steps in the new product development process?

Saved time and increased effectiveness Signup and view all the answers

What is the primary goal of the idea generation stage in new product development?

To create a large number of product ideas Signup and view all the answers

What is the purpose of idea screening in new product development?

To reduce the number of ideas to a manageable set Signup and view all the answers

What is the primary goal of concept development in new product development?

To develop a detailed product concept Signup and view all the answers

What is the main risk associated with new product development?

Innovation risks Signup and view all the answers

What is the primary goal of market testing?

To test a product and its proposed marketing program in realistic market settings Signup and view all the answers

What is an alternative to standard market testing?

Controlled market test and simulated market test Signup and view all the answers

What is a limitation of the Product Life Cycle (PLC) concept?

It is not an independent variable, but rather dependent on the marketing mix Signup and view all the answers

What is the term for a product that is adopted quickly by the public, peaks early, and declines rapidly?

Fad Signup and view all the answers

What is a key characteristic of the Product Life Cycle (PLC) stages?

Unpredictable duration Signup and view all the answers

What is the primary purpose of product positioning?

To differentiate a product from competitors Signup and view all the answers

What is the term for the high budget allocated to marketing efforts during the commercialization stage?

Commercialization budget Signup and view all the answers

What is the term for the process of introducing a new product into the market?

Commercialization Signup and view all the answers

Study Notes

New Product Development (NPD) Process

NPD process involves the development of original products, product improvements, modifications, and new brands
The process focuses on finding new ways to solve customer problems and create customer-satisfying experiences

Steps in NPD Process

(1) Idea Generation: systematic search for new product ideas through internal and external sources, including crowdsourcing
(2) Idea Screening: screening new product ideas to spot good ideas and drop poor ones as soon as possible
(3) Concept Development and Testing: developing a product concept and testing it with groups of target consumers
(4) Marketing Strategy Development: developing a marketing strategy for the new product
(5) Market Testing: testing the product and its proposed marketing program in realistic market settings
(6) Commercialization: introducing a new product into the market

Product Life Cycle (PLC)

PLC shows sales and profits over the product’s life from inception to decline
Limitations of PLC: it is a dependent variable, not an independent variable; fads do not follow the classic PLC curve; and the duration of PLC stages is unpredictable

Building Customer Value

A brand is built by creating customer value
Objectives include defining the steps in the NPD process, describing the stages of PLC and how marketing strategies change, and discussing the decisions companies make in building customer value

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Learn about the new product development process, from idea generation to innovation. Explore internal and external sources of new product ideas, and the importance of innovation in companies.