Marketing; MT2 - QB; Lesson9 Flashcards
(10 cards)
Why do so many new products fail?
New products frequently fail due to a combination of factors: inadequate market research leads to a misalignment with consumer needs, poor product design and quality diminish user satisfaction, ineffective marketing and positioning strategies result in low visibility and differentiation, incorrect pricing can alienate potential buyers, and mismanaged product launches hinder market penetration. Addressing these areas through thorough research, strategic planning, and effective execution is essential for the successful introduction of new products in a competitive market.
What is idea generation? List and explain the sources of new product ideas.
Idea generation in marketing involves creating new product or service concepts, drawing from sources like internal staff insights, customer feedback, competitor analysis, market research, collaborations with suppliers and partners, industry events and publications, and academic partnerships. This process is crucial for innovation, requiring an environment that fosters creativity and leverages diverse perspectives to continuously generate competitive and relevant product ideas.
What actions are performed in the test marketing step of the new product development process? How does a business carry out this step?
In the test marketing step of new product development, businesses conduct a limited product launch in a representative market to evaluate viability. Key actions include selecting a test market mirroring the target audience, developing tailored marketing strategies, producing, and distributing the product on a small scale, executing targeted promotional campaigns, and gathering and analyzing data on sales, customer feedback, and operational challenges. Based on this data, adjustments are made to the product, marketing approach, or operational tactics. This phase is essential for identifying potential issues and opportunities before a full-scale market launch, thereby reducing risk, and optimizing the product’s market readiness.
Why might a business adopt a customer-centered approach to new product development?
A business adopts a customer-centered approach to new product development to ensure products align with actual customer needs and preferences, enhancing satisfaction and loyalty. This method reduces the risk of product failure, fosters innovation and market differentiation, strengthens the brand image, and enables better market forecasting. By focusing on customer insights, businesses can create more relevant, appealing products, and streamline their development process, maintaining competitiveness in a dynamic market.
Distinguish between a market modifying strategy and a marketing mix modifying strategy in the product life cycle process.
In the product life cycle process, a market modifying strategy aims to expand the market for an existing product by identifying new users or use cases, enhancing market reach and demand. Conversely, a marketing mix modifying strategy focuses on altering elements of the marketing mix (product, price, place, promotion) to rejuvenate the product’s appeal within its current market. This includes updating product features, adjusting pricing, changing distribution channels, or revamping promotional efforts. While market modifying grows the product’s market size, marketing mix modifying enhances its competitiveness and relevance in the existing market.
Based on concepts discussed in this chapter, describe the factors that have contributed to Bose’s new product success.
Bose’s new product success is attributed to its innovative technology and commitment to quality, a customer-centered approach in product design, strong branding and effective marketing strategies, product differentiation through unique features like noise-cancellation, continuous investment in research and development, effective market segmentation targeting specific consumer groups, and a broad global market presence. These factors have collectively established Bose as a leader in the audio equipment industry by continuously meeting and exceeding consumer expectations in a highly competitive market.
Is Bose’s product development process customer centered? Explain.
Bose’s product development process is customer-centered, focusing on understanding and addressing customer needs. They leverage customer feedback and market research, engage in user testing, and prioritize innovations and user-friendly designs based on consumer insights. This approach ensures their products meet consumer demands, aligning technology with user expectations in the audio equipment market.
How is Bose unique with respect to product life-cycle management?
Bose’s uniqueness in product life-cycle management includes the longevity of its products through durable design, regular updates and technological improvements, consistent brand experience across the product lifecycle, adaptability to changing market trends, strategic product discontinuation based on market analysis, and strong customer support. This comprehensive approach extends the relevance and appeal of their products in the competitive electronics market, ensuring long-term success and customer satisfaction.
With respect to the product life cycle, what challenges does Bose face in managing its product portfolio?
Bose faces several challenges in managing its product portfolio in relation to the product life cycle, including rapid technological advancements, market saturation, evolving consumer preferences, risk of product obsolescence, balancing innovation with brand consistency, navigating global market dynamics, and cost management. These challenges necessitate strategic planning and agile responses to ensure Bose’s products remain competitive and relevant in the fast-evolving audio equipment market.
Can Bose continue to maintain its innovative culture without Amar Bose?
Bose can maintain its innovative culture post-Amar Bose by institutionalizing innovation as a core value, ensuring visionary leadership, continuously investing in research and development, nurturing creative talent, maintaining a flexible organizational structure, focusing on customer needs, and adapting to market changes. This approach involves embedding innovation into the company’s ethos, supporting it through strategic leadership and resource allocation, and fostering an environment that encourages creativity and responsiveness to evolving market trends.
