COMMERCE 2MA3 Lecture Notes - Lecture 8: Liquid Oxygen, Iphone 6, Generation A

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2MA3
• Professor: Yousra Bakr

Document Summary

Lo1: identify the reasons why firms create new products. Lo2: describe the doi theory and how managers can use it to make the product line decisions. Lo3: list the stages involved in developing new products and services. Lo4: describe the plc and describe how it is used to make product line decisions. New does not necessarily mean that the product has never existed before. It can be a new improved version of an existing product. Completely new products represent 10% of new product introductions. Innovation: process by which ideas are turned into new products and services. To satisfy changing customer needs with new products. To create new growth opportunities in saturated markets (think of new iphone models that are released after mostly everyone bought existing version) To accommodate fashion cycles (think of books that you have already read or video games that you already played, you need new ones to consume).