MGT252H5 Lecture Notes - Lecture 8: New Product Development, Case Fatality Rate

31 views1 pages
11 Feb 2016
School
Department
Course
Natalie Ianniello
MGT252
Hossain
October 27, 2015
Lecture #8 – NPD and Distribution
New product development – virtually all product eventually declines, a 'rm
must be good at developing/acquiring new product to replace aging product
Channel design – how to bring products to market
Channel management – how to coordinate with channel members to produce
desired services for end users
NPD can be:
- New to company – acquisition or development, technology exists on
market
- New to market – new way of giving existing bene'ts, or new bene'ts
NPD data:
- $248 billion spent on NP launches
- 33,678 new products
- Fatality rate (idea to shelf) = %75
- Fatality rate (shelf – 2 years) = %80
- More than %50 of consumers cannot recall a single new product
Reasons for failure:
- No customer value
- Poor positioning
- No systematic development
- People problems
Product Development Process:
Idea generation and screening
Concept development and testing
Physical product development and testing
Commercialization
Unlock document

This preview shows half of the first page of the document.
Unlock all 1 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class