COMM 223 Lecture Notes - Lecture 10: New Product Development, Test Market, Marketing Strategy
6 Mar 2015
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Document Summary
Chapter 10 - new-product development and product life-cycle strategies. All product goes through life-cycle: born, several phases and eventually dies out: challenges - firms must: Come up with new products to replace old ones. Adapt their marketing strategies as products pass through life-cycles. Acquisition: buying of a whole company, a patent or a license to produce someone else"s product. New product development: original products, product improvements, product modifications and new brands developed from the firm"s own r&d. Reasons why new products can fail: overestimation of market size, poor design. Incorrect positioning: wrong timing, prices too high. Ineffective promotion: management influence, high development costs, competition. Idea generation is the systematic search for new-product ideas. Internal sources: the company"s own formal research and development, management and staff, and entrepreneurial programs. External sources: sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms. Identify good ideas and drop poor ideas: product development costs raise quickly after this stage.
