Podcast
Questions and Answers
What is one benefit of cross-functional teams in product development?
What is one benefit of cross-functional teams in product development?
How does an innovation-oriented culture impact product development?
How does an innovation-oriented culture impact product development?
At which stage of the product life cycle are sales typically zero and investment costs high?
At which stage of the product life cycle are sales typically zero and investment costs high?
Which strategy can help in the early stages of a product's life cycle?
Which strategy can help in the early stages of a product's life cycle?
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What aspect of consumer behavior is most significantly influenced by effective product development strategies?
What aspect of consumer behavior is most significantly influenced by effective product development strategies?
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What primarily characterizes the introduction stage of the product life cycle?
What primarily characterizes the introduction stage of the product life cycle?
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During the growth stage of the product life cycle, which strategy is primarily employed to manage competition?
During the growth stage of the product life cycle, which strategy is primarily employed to manage competition?
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Which of the following strategies is employed during the maturity stage to enhance product sales?
Which of the following strategies is employed during the maturity stage to enhance product sales?
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What is a common challenge facing products in the decline stage?
What is a common challenge facing products in the decline stage?
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What role does consumer education play in the growth stage?
What role does consumer education play in the growth stage?
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What challenge arises from having many suppliers during the maturity stage?
What challenge arises from having many suppliers during the maturity stage?
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Which action is typically not recommended during the decline stage?
Which action is typically not recommended during the decline stage?
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Social responsibility in marketing emphasizes which of the following considerations?
Social responsibility in marketing emphasizes which of the following considerations?
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What is the main focus of Product Life-Cycle strategies?
What is the main focus of Product Life-Cycle strategies?
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Which of the following best defines 'style' in the context of product life cycle?
Which of the following best defines 'style' in the context of product life cycle?
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Which stage of the product life cycle typically involves high investment in marketing?
Which stage of the product life cycle typically involves high investment in marketing?
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In relation to international marketing, product life cycle strategies are important for which of the following?
In relation to international marketing, product life cycle strategies are important for which of the following?
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Which approach aligns best with social responsibility in marketing during the product life cycle?
Which approach aligns best with social responsibility in marketing during the product life cycle?
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Study Notes
New-Product Development Strategy
- Two ways to obtain new products: Acquisition (buying a company, patent, or license) or new product development (original products, improvements, modifications, new brands).
- Reasons for new product failure: overestimation of market size, poor design, incorrect positioning, wrong timing, overpriced, ineffective promotion, management influence, high development costs, and competition.
New-Product Development Process
- Idea Generation: Systematic search for new product ideas, both internally (company research, staff, intrapreneurial programs) and externally (customers, competitors, distributors, suppliers, outside design firms).
- Idea Screening: Identify good ideas, eliminate poor ones; use a R-W-W framework (Is it real? Can we win? Is it worth doing?).
- Concept Development and Testing: Develop detailed product concepts, test these with target consumers to determine consumer perception toward an actual or potential product.
- Marketing Strategy Development: Create initial marketing strategy for launch (target market, value proposition, sales/profit goals, price, distribution, marketing budget, long-term strategy).
- Business Analysis: Evaluate sales, costs, and profits to determine if objectives are met.
- Product Development: Create and test one or more physical versions (R&D or engineering). Requires investment.
- Test Marketing: Introduce product/marketing plan into more realistic settings (e.g., actual markets), providing experience before full introduction. Types of test markets include standard, controlled, and simulated.
- Commercialization: Introduce the new product into the market, deciding on launch timing, and location.
Product Life-Cycle Strategies
- Stages: Introduction (slow sales, little profit, high distribution/promotion costs), Growth (sales increase, competitors enter, profits rise, economies of scale), Maturity (peak sales, high profits, competitors numerous with substitute products). Decline (declining sales, low costs, declining profits).
- Style: Basic and distinctive mode of expression.
- Fashion: Currently accepted or popular style in a field
- Fad: Temporary period of unusually high sales driven by consumer interest.
Additional Product and Service Considerations
- International product/service marketing: determining product/service introduction to varied countries; product standardization or customization; packaging, labeling, understanding cultural values and laws.
- Product Decisions and Social Responsibility: Regulations and public policy regarding product development, patents, product quality, and safety.
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Description
Explore the essential steps and considerations in the new-product development process. This quiz covers acquisition methods, the reasons behind product failures, and the systematic approach to idea generation, screening, and testing. Test your knowledge of this critical business strategy.
