Lamb N11


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Lamb N11

  1. 1. Developing and Managing RroductiKEY THERM! KEEY CONCERTSL01 new product a product new to the world, the Explain the importance of developing new products and describe the six categories of new products. New products are important to sustain market, the producer, the growth and profits andseller, or some combination of these to replace obsolete items. New products can be classified as new-to-L0 2 new-product strategy a plan that links the new- the-world products (discontinuous innovations), new product lines, product development additions to existing product lines,process with the objectives of themarketing department, the business improvements or revisions of existingunit, and the corporation products, repositioned products, or lower-priced products. To sustain orproduct development a increase profits, a firm must strategy that entails thecreation of marketable new products;the process of converting applications Explain the stepsfor new technologies into marketable in the new-productproducts developmentbrainstorming the process of process. First, a firm forms agetting a group to think of unlimited new-product strategy by outlining Test marketingways to vary a product or solve a the characteristics and roles T - Commercializationproblem of future products. Then new-screening the first filter in the product ideas are generated by New productproduct development process, which customers, employees, distributors, ©CENGAGE LEARNING 2011eliminates ideas that are inconsistent competitors, vendors, andwith the organizations new- internal research and developmentproduct strategy or are obviously personnel. Once a product idea has survived initial screening by an appointed screeninginappropriate for some other reason group, it undergoes business analysis to determine its potential profitability. If a productconcept test a test to evaluate a concept seems viable, it progresses into the development phase, in which the technicalnew-product idea, usually before any and economic feasibility of the manufacturing process is evaluated. The developmentprototype has been created phase also includes laboratory and use testing of a product for performance and analysis the second Following initial testing and refinement, most products are introduced in a test market tostage of the screening process where evaluate consumer response and marketing strategies. Finally, test market successes arepreliminary figures for demand, cost, propelled into full commercialization. The commercialization process involves starting upsales, and profitability are calculated production, building inventories, shipping to distributors, training a sales force, announcingdevelopment the stage in the the product to the trade, and advertising to consumers.product development process inwhich a prototype is developed and a Discuss global issues in new-product development. A marketer withmarketing strategy is outlined global vision seeks to develop products that can easily be adapted to suit localsimultaneous product needs. The goal is not simply to develop a standard product that can be solddevelopment a team-oriented worldwide. Smart global marketers also look for good product ideas worldwide.approach to new-productdevelopmenttest marketing the limited Explain the diffusion process through which new products areintroduction of a product and a adopted. The diffusion process is the spread of a new product from its producer to ultimate adopters. Adopters in the diffusion process belongmarketing program to determine the reactions of potential customers in a to five categories: innovators, early adopters, the early majority, the late majority, and market situation laggards. Product characteristics that affect the rate of adoption include product complexity, compatibility with existing social values, relative advantage over existing Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in pari. ■