MKT-410 Lecture Notes - Lecture 16: New Product Development, Business Analysis, Test Market
Document Summary
Types of new products: new to the world products, new product lines, additions to existing products. Improvements and revisions: repositions product lower priced products, typically want to do this early. In order to be successful: a long-term commitment, a company-specific new product strategy, experience, there is a lot of failure, conducive. New product development strategy: new product strategy. Idea generation: sources of new product ideas, customers, employees, distribution, vendors, competitors, r&d, consultants. Idea screening: business analysis, test marketing, time consuming, expensive, reduces the element of surprise. New products fail because: a lack of discernible benefits, mismatch between features and customer desires, over estimations of market. Incorrect positioning: prices too high, poor promotions. Innovators: early adopters, early majority, late majority, laggards, intangibility, physical queues, cannot be touched or seen. Services have a greater heterogeneity, or variability of inputs, because they are more labor intensive, less standardized, and harder to control for quality than with products: perishability.
