COMM 223 Study Guide - Final Guide: New Product Development, Test Market, Marketing Strategy
21 Mar 2015
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Chapter 10 - new-product development and product life-cycle strategies. All product goes through life-cycle: born, several phases and eventually dies out: challenges - firms must: Come up with new products to replace old ones. Adapt their marketing strategies as products pass through life-cycles. New products are important: for companies: new products = source of growth, for customers: bring new solutions and variety to their lives. Reasons why new products can fail: overestimation of market size; poor design; Internal sources: company"s own r&d, management, staff, and entrepreneurial programs: external sources: sources outside the company (customers, competitors, distributors, suppliers, and outside design firms) Identify good ideas and drop poor ideas: product development costs quickly after this stage. (must have as few as possible to reduce cost: what do you need to evaluate an idea. Rate of return: r-w-w screening framework: Is there enough profit potential: concept development and testing, attractive idea must be transformed into a product concept.
