MGMA01H3 Chapter 10: Chapter 10 Notes
Document Summary
Chapter 10 new product development and product life cycle strategies notes. Idea generation: major sources include internal sources and external sources such as customers, competitors, distributors, suppliers, and others. Concept testing: many firms routinely test new-product concepts with consumers before attempting to turn them into actual new products. R & d, operations, accounting, and finance costs, which can be used to analyze the new product"s financial attractiveness. Product life-cycle strategies product life cycle (plc) the course of a product"s sales and profits over its lifetime; it involves 5 distinct stages: product development begins when the company finds and develops a new-product idea. During product development, sales are zero and the company"s investment costs mount. Introduction is a period of slow sales growth as the product is introduced in the market. Profits level off or decline because of increased marketing outlays to defend the product against competition: decline is the period when sales fall off and profits drop.
