MGMA01H3 Chapter 10: Chapter 10 Notes
Document Summary
Obtain new products in 2 ways: buying company, patent, license or new product development. New-product development the development of original products, product improvements, product modifications, and new brands through the firm"s own product-development efforts. For companies, new products are a key source of growth. For customers, they bring new solutions and variety to their lives. 90% of all new products fail (lose us-30) Product fails when: overestimate market size, poorly designed, incorrectly positioned, launch at wrong time, price too high, or poorly advertised, cost higher than expected, competitors fight back hard than expected. The new-product development process: idea generation the systematic search for new-product ideas, major sources include internal sources and external sources a) Product concept a detailed version of the new-product idea stated in meaningful consumer terms. Product idea an idea for a possible product that the company can see itself offering to the market. 3 approaches: standard test markets (most widely used)
