The New Product Development Process & the Product Life Cycle

Question 1

What are the 5 Main Reasons for New Product Failures

Answer 1

1. Lack of Market/Need
2. Poor Design
3. Priced too high or low
4. Oversaturated Market
5. Poor Marketing

Question 2

Explain the New Product Development Process

Answer 2

The systematic and strategic process of creating and introducing new products or services into the market, involving various stages from idea generation to market launch.

Question 3

Decribe the Idea Generation Stage

Answer 3

The initial stage where creative ideas for new products are generated

Question 4

Describe the Idea Screening stage

Answer 4

Analysis of new ideas in order to identify ideas with highest profitability

Achieved through CONCEPT TESTING

Question 5

Describe Marketing Strategy Development

Answer 5

Using the results of concept testing to outline
* Expected target market
* Planned positioning
* Sales projections

Question 6

Define Business Analysis

Answer 6

The systematic examination and evaluation of a business or a specific project to understand its goals, challenges, opportunities, and requirements.

Question 7

Decribe Product Development

Answer 7

Creating prototypes from product concepts

Question 8

Describe Test Marketing

Answer 8

The release of a product or service in one geographical area to measure performance in market before commercialisation

Question 9

Commercialisation

Answer 9

Mass production or full roll out of the good or service

Question 10

Define the Product Life Cycle

Answer 10

The life of the product from product development to declline and eventual death in the context of sales and profits

Question 11

What are the stages of the Product Life Cycle

Answer 11

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline

Question 12

Identify the Marketing Mix Strategies used during the Introduction Stage

Where

• Slow sales growth
• Little or no profit
• High distribution and promotion expense

in context of PRODUCT LIFE CYCLE

Answer 12

• Selective distribution
• Basic Product or less features
• Introductory Pricing

Question 13

Identify the Marketing Mix Strategies used during the Growth Stage

Where
* Sales and profits increase
* New competitors enter the market
* Promotion and manufacturing costs gain economies of scale

Answer 13

• Price stability or decline to increase volume
• Consumer education
• Brand Differentiation

Question 14

Identify the Marketing Mix Strategies used during the Maturity Stage

Where

• Slowdown in sales growth but maximum sales (before decline sets in)
• Profits begin to decline
• Lots of competition due to overcapacity and slow down in sales growth
• Increased promotion, reduced prices and R&D to support sales and profits

Answer 14

• Market modifying- new markets (segments or geographical areas)
• Product modifying- changes in packaging, quality level, features
• Marketing mix modifying- changing promotion, pricing, distribution strategies ( along with product modifications).
  *

Question 15

Identify the Marketing Mix Strategies used in the Decline Stage

Where
Sales and Profits continue to decline

Answer 15

• Maintain the product – no increase in expenditure for various aspects of marketing mix
• Harvest the product- reduction in support expenditure until product comes to end of life
• Drop the product **immediately **as stage is evident