The document outlines the new product development process, including idea generation, screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, and commercialization. It discusses the challenges of developing a new product strategy and bringing an idea through each stage of the process to a launched product. It also describes the product life cycle and how marketing strategies must change at different stages as a product is introduced, grows, reaches maturity, and eventually declines.
9. Main steps in N.P.D. Fig. 9.1 Idea Generation Idea Screening Concept Development and Testing Marketing Strategy Business Analysis Product Development Test Marketing Commercialisation
A. screening (there is nothing to screen in the first stage) B. prescreening (no such thing) C. profit estimation (this cannot happen before the idea is generated) D. idea generation is correct. E. idea screening (screening can only happen after there is an idea)
E. all of the above is the correct answer. Ideas come from a variety of sources which should all be considered.
Figure 9.3 The Product Lifecycle (PLC) pp 314 Figure 9.3 shows a typical product life cycle ‘the course of a product’s sales and profits during its lifetime. It involves five distinct stages: Product development – the company finds and develops a new product idea. Introduction – slow sales growth as the product is introduced into the market. Growth – period of rapid market acceptance and increasing profits. Maturity – slowdown in sales growth because the product has achieved acceptance, profits level off or decline. Decline – period when sales fall off and profits drop.
D. growth stage is the correct answer. The competitors would monitor the product introduction and uptake carefully, but would not be overly concerned until sales started to increase. At the growth stage competitors would try to gain or regain their market share and prevent the new product reaching maturity. Commercialisation is not strictly a stage of the PLC but part of the introduction stage.
![[object Object],[object Object],[object Object],[object Object],[object Object],Chapter Objectives](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)