MGMT 322 Chapter Notes - Chapter 11: Research And Development, Test Market, Consumer Product Safety Act
Document Summary
Outline of chapter 11: developing and managing products. Lo1: explain the importance of developing new products and describe the six categories of new products. New products are important to sustain growth, increase revenues and profits, and replace obsolete items. Some companies spend a considerable amount of money each year developing new products. Sometimes it is difficult to decide when to replace a successful product. Clearly, the introduction of a new product is a monumental undertaking with a lot of open- ended questions. New product a product new to the world, the market, the producer, the seller, or some combination of these. 6 categories of new products: new-to-the-world products (also called discontinuous innovations) These products create an entirely new market. New-to-the-world products represent the smallest category of new products: new product lines. These products, which the firm has not previously offered, allow it to enter an established market: additions to existing product lines.
