Objective 1: Explain how companies find and develop new-product ideas. Companies find and develop new-product ideas from variety of sources. Many new product ideas stem from internal sources. Companies conduct formal research and development, pick the rains of their employees, and brainstorm at executive meetings. Other ideas come from external sources. By listening to and working with customers, conducting surveys and focus groups, and analyzing customer questions and complaints, companies can generate new-product ideas that will meet specific consumer needs. Companies track competitor’s offerings and inspect new products, dismantling them, analyzing their performance, and deciding whether to introduce a similar or improved product. Distributors and suppliers are close to the market and can pass along information about consumers’ problems and new product possibilities.
Objective 2: List and define the steps in the new-product development process and the major considerations in managing this process. The new-product development process consists of 8 sequential stages: 1) Idea generation
2) Idea screening
3) Product Concept development
4) Concept testing
5) Marketing Strategy Development
6) Business Analysis Stage
7) Product Development/Test Marketing
New –product development involves more than just going through a set of steps. Companies must take a systematic, holistic approach to managing this process. Successful new-product development requires a customer-centered, team-based, systematic effort.
Objective 3: Describe the stages of the product-life cycle and how marketing strategies change during the products’ life cycle. Each product has a life cycle marked by a changing set of problems and opportunities. The sales of the typical product follow an S-shaped curve made up of 5 stages: 1. Product Development
2. Introduction Stage
3. Growth Stage
4. Maturity stage