Chapter 12

• exam on monday 10/24 
• chapters 9-12 
• lucture topics 
• core concepts of NPD 
• new product development 
• the complete process of bringing a new product to market 
• the transformation of ideas into new offerings (innovation) 
• prove growth strategy 
• idea generation \concept testing 
• product developent 
• market testing 
• how firms develop new products 
• idea generation - development of viable new product ideas 
• viable products - is it worth it and will it bring profit 
• concept testing - testing the new product idea among a set of potential customers 
• want to bring in potential consumers and getting feedback on the idea of a product 
• product development - development of prototypes and /or the product 
• market testing - testing the actual products in a few test markets 
• selcts markets that would be a good representation of their consumers 
• product launch - full  scale, commercialization of the product 
• evaluation of results - analysis of the performance of the new product and making appropriate modifications 
• 2 categories of new product development 
• new to the world products 
• redesigned products 
• new product development : redesigns 
• new versions of existing products / services 
• primary category of new product development 
• LEGO introduces building sets to free-form blocks (2006) 
• Matel introduces tall, petite and curvy body types for barbie (2016) 
• new product development : new to world products 
• pioneers/breakthroughs/first - movers 
• represent less than 10% of new product introductions
• 50 - 80% failure rate 
• when making new products think about simplicity 
• advantages and disadvantages of being the first to introduce products that create new markets 
• advantages
• product becomes readily recognizable to consumers 
• the company establishes a commanding and early market share lead 
• can mean a greater market share over a long period 
• disadvantages 
• they do not succesfully meet the consumer need 
• they meet a need that consumers have not realized yet 
• they get imitated by competitors who can produce cheaper alternatives 
• why do firms create new products 
• to manage changing customer needs 
• to improve buisness relationships ( speaks to the supply chain )  
• to respond to fashion cycles ( short product lifestyles) to manage risk through diversity 
• to prevent overall sales declines ( due to market saturation) - no growth in the market 
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