BUS 202 Lecture Notes - Lecture 9: Longrun, Test Market
13 Dec 2016
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Chapter 9 notes: explain the importance of developing new products and describe the six categories of new products. New products are important to sustain growth and profits and to replace obsolete items. New products can be classified as new-to-the-world products (discontinuous innovations), new product lines, additions to existing product lines, improvements or revisions of existing products, repositioned products, or lower-cost products. New product advantages include: increased sales through longer sales life, increased margins, increased product loyalty, more resale opportunities, greater market responsiveness, a sustained leadership position. To sustain or increase profits, a firm must introduce at least one new successful product before a previous product advances to the maturity stage and profit levels begin to drop. First, a firm forms a new-product strategy by outlining the characteristics and roles of future products. Then new-product ideas are generated by customers, employees, distributors, competitors, suppliers, and internal r&d personnel.
