NPD Flashcards
(35 cards)
What is New Product Development (NPD)?
The process of creating original products, product improvements, product modifications, and new brands from a firm’s R&D. (Kotler & Armstrong)
What is the New Product Development process model?
A systematic process: Idea generation, idea screening, concept development & testing, marketing strategy, business analysis, product development, test marketing, and commercialization.
What is Idea Generation?
The systematic search for new product ideas from internal (R&D, staff) and external (customers, competitors) sources.
What is Crowdsourcing?
Inviting broad communities of people into the new product innovation process.
What is the R-W-W framework?
A screening tool asking: Is it Real? Can we Win? Is it Worth doing?
What is Concept Development?
Turning an idea into a detailed product concept, described in consumer terms.
What is Concept Testing?
Testing new product concepts with target consumers to gauge interest and feedback.
What is the Marketing Strategy Statement?
Defines target market, positioning, sales/profit goals, price, distribution, marketing mix, and long-term strategies.
What is Business Analysis?
A review of sales, costs, and profit projections to assess a new product’s business fit.
What is Product Development?
Turning a concept into a physical product that can be offered to the market.
What is Test Marketing?
Testing a new product and marketing program in realistic settings.
What is Commercialization?
Introducing the product to the market; decisions include timing, location, and market rollout.
What are the success factors in NPD?
Customer-centered, team-based, systematic development with clear goals and good communication.
What is the ‘Valley of Death’ in NPD?
The challenging phase between research and product development where many ideas fail.
What is Agile Methodology in NPD?
A flexible, iterative, and customer-focused approach to managing projects in rapidly changing environments.
What is a Product Innovation Charter (PIC)?
A document outlining the new product team’s strategy, goals, scope, and guidelines for innovation.
Why is a PIC important?
Provides direction, focus, and alignment for the NPD team, improving innovation rates.
What are the stages of the Product Life Cycle (PLC)?
Introduction, Growth, Maturity, and Decline.
What are the typical strategies for the Introduction Stage?
Slow sales, high promotion costs, educate consumers.
What are the typical strategies for the Growth Stage?
Increase sales, more competitors, economies of scale, potential price drops.
What are the typical strategies for the Maturity Stage?
Defend market share, modify market/product/marketing mix.
What are the typical strategies for the Decline Stage?
Maintain, harvest, or drop the product.
What is Diffusion of Innovation?
The spread of innovations through markets over time, from innovators to laggards.
Who are the adopter categories in diffusion theory?
Innovators, Early adopters, Early majority, Late majority, Laggards.
