COMM 223 Study Guide - Final Guide: Instant Breakfast, Product Design, Market Trend
31 Jan 2015
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Document Summary
It is essential for long term survival and health of company if they want to survive in the marketplace by continuously introducing new products. New product development is really expensive and risky process. 35%-40% of the time new products fail in the marketplace, the success rate is less than 10% Example: ford introduced edsel model, to develop the car they spent 250$ million, they only sold 110,000 units, their expectation was 200,000 units, and it was a huge failure. Causes of new product failure: overestimate market size, tend to increase r&d/marketing spending, they cannot recover the spending in introduction stage, product design problem, product incorrect positioned, priced, advertised. Idea generation (stage 1: from customers you can get insight about new product, competitors customer offerings, imitate, employees deal with the product and know the product and possibly have ideas, distributors directly deal with the final customers. Identifying potential users (who can actually use that kind of product)
