Outline of Chapter 10:
Managing Existing Product:
b) Line Extension: Development of a product that is closely related to existing products in the line but meets different customer needs. i) Ex: Chocolate-flavored Chex Mix is a line extension.
c) Product Modifications: Changein one or more characteristics of a product. i) Ex: Automobile companies employ quality, functional, and aesthetic modifications. d) Quality modifications: Changes relating to a product’s dependability and durability e) Functional modifications: Changes affecting a product’s versatility, effectiveness, convenience or safety f) Aesthetic modifications: Changes to the sensory appeal of a product.
2) A “new product” can have more than one meaning:
a) Offering innovative benefits.
b) Different and distinctly better than existing products.
c) Never been sold by any organization.
d) One a specific firm is currently launching even though other firms are already producing and marketing similar products. e) It is brought to one or more markets from another market.
3) The Phases of New Product Development:
a) Idea generation- Seeking product ideas to achieve objectives. b) Screening- Choosing the most promising ideas for further review. c) Concept testing- Seeking potential buyers’ responses to a product idea. d) Business analysis- Evaluating the potential contribution of a product idea to the firm’s sales, costs and profits. e) Product development- Determining if producing a product is technically feasible and cost effective f) Test Marketing- Introducing a product on a limited basis to measure the extent to which potential customers will actually buy it. g) Commercialization- Deciding on full-scale manufacturing and marketing plans and preparing budgets. 4) Product Design and Features:
a) Product Design- How a product is conceived, planned, or produced. b) Styling- The physical appearance of a product.
c) Product Features- Specific design characteristics...