Perfecte samenvatting voor het behalen van het tentamen, heeft er ook voor gezorgd dat ik mijn propedeuse heb gehaald.
Perfect summary to help pass your exam, also helped me obtain my first year certificate (propedeuse).
Marketing chapter 8 new product development
8.1 What is a new product?
- Innovation: a creation resulting from study and experimentation. The introduction of
something new.
- Types of new products:
1. Product innovation: new to the world, a new product category.
2. Me-too product: new to the company, imitation product. Already sold by other
firms.
3. Product line addition: line extension, added tot the product line. Also flanker brand.
4. Product modification: improved version of the firm’s current product. Change to
some of the elements of the existing product.
5. Repositioned product: new positioning for an existing product.
- Flanker brand: a new item introduced under a new brand name into a product category in
which the company sells products.
- How innovation affects customers, how noticeable is the improvement?
Classify the products effect by:
1. Continuous innovation
2. Dynamically continuous innovation
3. Discontinuous innovation
- Continuous innovation: consumers do not have to change their attitudes or behaviour.
Maximise the consumer’s awareness and availability in retail channels.
- Dynamically continuous innovation: consumers need to adapt their behaviour and
consumption patterns slightly, to learn to use the new product. Clear positioning strategy
and clarification of product benefits through marketing communication.
- Discontinuous innovation: consumers go through an extensive learning process and through
behavioural changes in order to use the new product. Stimulate consumers learning process
through demonstrations, personal selling, samples and no-risk trial offer.
, 8.2 Reasons for product development
- 1. High return on investment: on average new products account for 40% of the
company’s profit.
2. Sales growth objectives: new products help to increase revenues in saturated
markets.
3. Excess capacity: new products help to cover fixed overhead costs.
4. Complete the product line: boosts product portfolio to attract and keep customers.
5. Government regulations: necessary to adapt products to stricter legislation.
6. Competition: rivals’ actions stimulate innovation and product improvement.
Substitute products may threaten competition, because they are seen as
alternatives.
7. Changing customer needs: exploit opportunities and trends in the marketing
environment.
8. New technology: Research & development breakthroughs create marketing
opportunities. They are working to achieve technological breakthroughs.
- Research and development: a company’s internal department, that aims to discover
solutions to problems and to create new products.
- Make or buy: decision between developing a product internally or getting an well-known
product by buying from an existing company.
Three factors that should be considered when making the decision:
1. Profitability
2. Risk
3. Know-how
- Profitability: to buy will give business quicker profits, don’t have to undertake all the
planning. The return on investment is greater if the product I developed by the company
itself, keep rewards to itself, because they took the initiative.
- Risk: less risk is involved when buying the product rather than making it.
- Know-how: consider the potential for synergy.
, - Merger: combination of two or more companies for the purpose of combining resources.
- Synergy: the possibility of increasing the efficiency and effectiveness of its operation by
carrying out activities jointly rather than separately.
8.3 Developing new products
- Product development process model:
- Product development process: activities a company uses to transform product ideas into
marketable product and services.
1. Strategy development: set clear objectives, SWOT analysis. Proactive or reactive.
Proactive: foresee future events/trends, offensive approach.
Reactive: responds to events that have take place, defensive approach.
2. Idea generation: use all sources of innovative ideas. Technology-push is replaced by
consumer pull.
3. Screening and evaluation: decide on criteria to evaluate ideas and concept test (show
drawing, animation, model) to assess a consumer’s reaction to the new product.
4. Business analysis: try to determine whether the the proposed products or services will be
profitable for the firm. Assumptions about the expected costs and revenues.
Pro forma income statement: estimate expected costs and revenues.
Market share projection: linking the break-even point to the existing competition (total
costs equal to the revenue).
5. Prototype development: create a test model that performs all functions. Decide on the
marketing mix.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper Larissapaa. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €2,99. Je zit daarna nergens aan vast.
