MGMA01H3 Study Guide - Midterm Guide: Crowdsourcing, Test Market, Business Analysis
Document Summary
Firm can obtain new products in two ways. Acquisition by buying a whole company, patent or a licence to produce someone else"s product. New product development: development of original products, product improvements, product modifications and new brands through the firm"s own product development efforts. Bring new solutions and variety to lives of customers. New products are new ways to connect to customers. New products fail due to overestimation of market size, poor design, incorrectly. Innovation can expensive and risky positioned, launched at wrong time, priced too high, poor advertising, higher development costs, tough competition, etc. Idea generation: systematic search for new product ideas. External sources such as distributors and suppliers. Distributors are close to the market and can pass on info on consumers. Competitors ideas can used and improved on. Suppliers can tell about new concepts, techniques and materials for new products.
