Chapter 8
Factors of commercialization
Timing where
External idea sources
can come from people like Competitors, Customers distributors and suppliers
Large source of new ideas
(internal sources) employees
Two methods of obtaining new products
1)Acquisition 2) New product development
Marketing Strategy Development
Designing initial marketing strategy for introducing to market
Stages of Product life Cycle (DIMGD)
Development Introduction Growth Maturity Declines
Difference between product idea and product concept
Idea for product that company can see itself offering to market but a product concept is detailed version of the idea stated in meaningful consumer terms.
Commercialization
Introducing product into the market- will face high costs
New Product Development
Original products, Product improvement/modification, and new brands through firms own efforts
Maturity
Period of slow down in sales growth
Product Development
R&D transforms concept into a physical product.
R-W-W
Real, win, worth it (method of screening)
Business Analysis
Review of the sales, cost, and profit projections for anew product to find out whether they satisfy company objectives
Idea Screening
Spot good ideas and drop poor ones as soon as possible
Test marketing
Stage at which product and marketing program are introduced to realistic market setting
Introduction Stage
Starts when new product is first launched. Take time, and sales growth is apt to be slow.
Most important source of external ideas
customers
Customer Centered new product development
focuses on new ways to solve customer problems and create more satisfying customer experiences
Product image
how consumers perceive actual or potential product.
Market rollout
plan for geographical introduction used in commercialization
Concept testing
testing new product concepts with groups of target consumers
Idea Generation
the systematic approach for new product ideas