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level: product development

Questions and Answers List

level questions: product development

Question	Answer
1)Idea generation 2)Idea screening 3)Concept development and testing 4)Marketing strategy development 5)Business analysis 6)product development 7)test marketing 8)commercialization	steps in product development
the systematic search for new-product ideas.. Typically, a company generates hundreds of ideas, maybe even thousands, to find a handful of good ones in the end. Two sources of new ideas can be identified: 1)Internal idea sources 2)External idea source	idea generation
the company finds new ideas internally. That means R&D, but also contributions from employees.	internal idea sources
the company finds new ideas externally. This refers to all kinds of external sources, e.g. distributors and suppliers, but also competitors. The most important external source are customers because the new product development process should focus on creating customer value.	external idea sources
filtering the ideas to pick out good ones. In other words, all ideas generated are screened to spot good ones and drop poor ones as soon as possible.	idea screening
To go on in the new product development process, attractive ideas must be developed into a product concept. A product concept is a detailed version of the new-product idea stated in meaningful consumer terms. You should distinguish ~A product idea- an idea for a possible product ~A product concept- a detailed version of the idea stated in meaningful consumer terms ~A product image- the way consumers perceive an actual or potential product.	concept development and testing
The idea has passed the idea of screening and must now be developed into a concept. The marketer’s task is to develop this new product into alternative product concepts. Then, the company can find out how attractive each concept is to customers and choose the best one.	concept development
New product concepts need to be tested with groups of target consumers. The concepts can be presented to consumers either symbolically or physically	concept testing
When a promising concept has been developed and tested, it is time to design an initial marketing strategy for the new product based on the product concept for introducing this new product to the market.The marketing strategy statement consists of three parts and should be formulated carefully: 1)A description of the target market, the planned value proposition, and the sales, market share and profit goals for the first few years 2)An outline of the product’s planned price, distribution and marketing budget for the first year 3)The planned long-term sales, profit goals, and the marketing mix strategy.	marketing strategy development
a review of the sales, costs and profit projections for the new product to find out whether these factors satisfy the company’s objectives. If they do, the product can be moved on to the product development stage.	business analysis
if the product concept passes the business test, it must be developed into a physical product to ensure that the product idea can be turned into a workable market offering. The problem is, though, that at this stage, R&D and engineering costs cause a huge jump in investment.	product development
In this stage, the product and its proposed marketing programme are tested in realistic market settings. Therefore, test marketing gives the marketer experience with marketing the product before going to the great expense of full introduction. I	test marketing
introducing a new product into the market. At this point, the highest costs are incurred: the company may need to build or rent a manufacturing facility. Large amounts may be spent on advertising, sales promotion and other marketing efforts in the first year.	commercialization
idea generation	first step in product development
concept development and testing	third step in product development
idea screening	second step in product development
business analysis	fifth step in product development
marketing strategy development	fourth step in product development
commercialization	last step in product development
product development	sixth step in product development
test marketing	seventh step in product development