3.4b - New Product Development Flashcards
1
Q
What are the stages of new product development?
A
- Generation of ideas
- Analysis of ideas
- Product development
- Test marketing
- Launch
2
Q
Advantages of focusing on core products:
A
- Efficiency
- More likely to understand needs of market
- Economies of scale
- Known for quality and expertise
3
Q
Advantages of product proliferation:
A
- Spread risk
- Appeal to different market segments (increase sales)
- Useful if market is saturated
- Greater scope for expansion
4
Q
What are the reasons for a business to develop new products?
A
- Technological developments
- New competitor products
- Gap in the market
