Podcast
Questions and Answers
What is the primary distinction between product design and product development?
What is the primary distinction between product design and product development?
What is the ultimate goal of product development?
What is the ultimate goal of product development?
What is the primary role of product design in the overall product development process?
What is the primary role of product design in the overall product development process?
What is the relationship between product design and product development?
What is the relationship between product design and product development?
Signup and view all the answers
What is the primary focus of product design?
What is the primary focus of product design?
Signup and view all the answers
What is the primary goal of new product development?
What is the primary goal of new product development?
Signup and view all the answers
What is the primary distinction between a product's design and its development?
What is the primary distinction between a product's design and its development?
Signup and view all the answers
What is the primary role of product development in the product life cycle?
What is the primary role of product development in the product life cycle?
Signup and view all the answers
What is the primary focus of the product design process?
What is the primary focus of the product design process?
Signup and view all the answers
What is the primary goal of product design in the product development process?
What is the primary goal of product design in the product development process?
Signup and view all the answers
What is the primary characteristic of the Maturity phase of the product life cycle?
What is the primary characteristic of the Maturity phase of the product life cycle?
Signup and view all the answers
What is the primary marketing objective during the Maturity phase?
What is the primary marketing objective during the Maturity phase?
Signup and view all the answers
What is the primary characteristic of the Decline phase of the product life cycle?
What is the primary characteristic of the Decline phase of the product life cycle?
Signup and view all the answers
What is the primary strategy during the Growth phase of the product life cycle?
What is the primary strategy during the Growth phase of the product life cycle?
Signup and view all the answers
What is the primary marketing strategy during the Decline phase of the product life cycle?
What is the primary marketing strategy during the Decline phase of the product life cycle?
Signup and view all the answers
What is the primary characteristic of the Introduction phase of the product life cycle?
What is the primary characteristic of the Introduction phase of the product life cycle?
Signup and view all the answers
What is the primary marketing objective during the Introduction phase of the product life cycle?
What is the primary marketing objective during the Introduction phase of the product life cycle?
Signup and view all the answers
What is the primary strategy during the Decline phase of the product life cycle?
What is the primary strategy during the Decline phase of the product life cycle?
Signup and view all the answers
What is the primary characteristic of the Growth phase of the product life cycle?
What is the primary characteristic of the Growth phase of the product life cycle?
Signup and view all the answers
What is the primary marketing objective during the Growth phase of the product life cycle?
What is the primary marketing objective during the Growth phase of the product life cycle?
Signup and view all the answers
Study Notes
Factors Affecting Product Design and Development
- Product identification, marketing, legal, finance, organization, manufacturing, and distribution related factors influence product design and development.
Product Life Cycle
- A product life cycle is the amount of time a product is in the market, from introduction to withdrawal.
- The four stages of a product's life cycle are introduction, growth, maturity, and decline.
- The product life cycle determines revenue earned and contributes to strategic marketing planning.
- It helps identify when a product needs support, redesign, or withdrawal and informs new product development.
Product Design vs. Product Development
- Product design refers to the styling, look, and feel of the product, deciding on its mechanical architecture, selecting materials and processes, and engineering components.
- Product design is a part of the overall product development process.
- Product development is the entire process of identifying a market opportunity, creating a product, and testing, modifying, and refining it until production-ready.
Characteristics of Successful Product Development
- Product quality is reflected in market share and customer satisfaction.
- Product cost includes manufacturing cost, capital equipment, and tooling.
- Development time is the duration of the product development effort.
- Development cost is the amount spent on the product development effort.
- Development capabilities refer to the experience and skills acquired during the product development process.
Who Designs and Develops Products?
- Marketing mediates interactions between the firm and its customers.
- Design defines the physical form of the product to meet customer needs.
- Industrial, mechanical, electrical, and software design functions are involved in product development.
- Manufacturing designs, operates, and coordinates the production system to produce the product.
What is a Product?
- A product is something sold by an enterprise to its customers.
- Product design is the mother of all operations processes in an organization.
- It reflects a company's overall strategy and defines a product's characteristics, such as appearance, materials, dimensions, tolerances, and performance standards.
Product Design and Development
- A product is something sold by an enterprise to its customers.
- Product design refers to the process of creating the styling, look, and feel of the product, deciding on the product's mechanical architecture, selecting materials and processes, and engineering the various components necessary to make the product work.
- Design is a combination of science and art.
- Product development, also known as new product management, is a series of steps that includes the conceptualization, design, development, and marketing of newly created or newly rebranded goods or services.
Product Design vs Product Development
- Product design is specific to designing the product itself and is part of the product development process.
- Product development is the whole process from concept to market, including market analysis, costing, scheduling, testing, and handling the manufacturing process.
Characteristics of Successful Product Development
- Product quality: how good is the product resulting from development?
- Product cost: what is the manufacturing cost?
- Development time: how long did the product development effort take?
- Development cost: how much is spent in the product development effort?
- Development capabilities: did the team/firm acquire any experience for future projects?
Who Designs and Develops Products?
- Marketing: mediates the interactions between the firm and its customers.
- Design: plays the lead role in defining the physical form of the product to best meet customer needs.
- Industrial design: includes mechanical, electrical, software, and other disciplines.
- Manufacturing: responsible for designing, operating, and/or coordinating the production system to produce the product.
Factors Affecting Product Design and Development
- Product identification: related to the product itself.
- Marketing-related factors: target market, competition, and customer needs.
- Legal factors: regulatory requirements, intellectual property, and safety standards.
- Financial factors: budget, funding, and resource allocation.
- Organizational factors: company strategy, resource allocation, and team structure.
- Manufacturing-related factors: production process, supply chain, and distribution.
Product Life Cycle
- A product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves.
- There are four stages in a product's life cycle: introduction, growth, maturity, and decline.
Phases of Product Life Cycle
- Phase I: Product Development
- Market survey and analysis
- Product development and refinement
- Preparation for launch and test marketing
- Phase II: Introduction/Launch
- Low demand and high cost or low sales
- Advertisement and promotions
- Monitor initial sales
- Phase III: Growth
- Sales growth rate increases due to limited or no competition
- Revenue increases
- Cost efficiency and product availability
- Phase IV: Maturity
- Sales reach peak and marketing cost declines
- Highest returns from the product
- Marketing objectives: maximize profits while defending market share
- Phase V: Decline
- Sales decline due to competition and reduced prices
- Decision to withdraw may be dependent on availability of new products and trends
Product Life Cycle Strategies
- Introduction: Offer basic product
- Growth: Offer product extension, service, and warranty
- Maturity: Diversify brands/models
- Decline: Phase-out weak products
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the various factors that influence product design and development, including marketing, legal, financial, organizational, manufacturing, and distribution related factors.
