BUSN 1101 Lecture Notes - Lecture 4: Fixed Cost, Operations Management, Variable Cost
3 Apr 2016
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Document Summary
A product is something that can be marketed to customers because it provides them with a benefit and satisfies a need. It can be a physical good, such as the powerski jetboard, or a service, such as a haircut or a taxi ride. Many products have both tangible and intangible components. New product developments can be grouped into four major categories: new-to- the-company, improvement of existing product, extension of product line, and new-to-the-market. New-to-the-company- easter decorating kit that used peeps marshmallows such a hit that the company followed by creating decorating kits. Because similar products are made by other companies, the decorating kits are not new to the market but are new to the company. New-to-the-market- the powerski jetboard is a new-to-the-market product. Before it was invented, no comparable product existed. Launching a new-to-the- market product is very risky, and only about 10 percent of products created fall into this category.
