The Spread of New Products The Diffusion of Innovation The diffusion of innovation theory seeks to explain how, why, and at what rate new ideas and technology spread through cultures. LEARNING OBJECTIVES List the four main elements that influence the spread of new ideas and technologies KEY TAKEAWAYS Key Points Everett Rogers, a professor of rural sociology, popularized the theory in his 1962 book Diffusion of Innovations. Four main elements… Read More »The Spread of New Products : four main elements that influence the spread of new ideas and technologies

Organizational Requirements for Product Development and Management Product management is an organizational lifecycle function within a company dealing with the planning, forecasting, or marketing of a product or products at all stages of the product lifecycle. Product development – the process of bringing new products to the marketplace – combined with product marketing, make up the product management function that oversees the launch of a company’s new products. Product Launch:… Read More »Organizational Requirements for Product Development and Management

Differentiating Factors in Product Design Quality Consumers place a value on quality; therefore high quality products may be able to win share and/or command a price premium. LEARNING OBJECTIVES Identify the attribute of quality at the design stage as a differentiating factor KEY TAKEAWAYS Key Points Quality is considered a non-functional requirement in product design, affecting the execution and evolution of a product. The five aspects of quality in a… Read More »Differentiating Factors in Product Design

Commercialization Commercialization the process of launching a new product; it may involve heavy promotion and filling the distribution networks with the product. LEARNING OBJECTIVES Describe the three steps that must be implemented during the commercialization of new products KEY TAKEAWAYS Key Points The timing of the launch should coincide with a good economic situation to maximize sales. Cannibalization of existing products should be avoided, and the product should only be… Read More »Commercialization the process of launching a new product

Test Marketing Test marketing is the final stage before commercialization, and is where all the elements of the marketing plan are tested. LEARNING OBJECTIVES Discuss the requirements that must be satisfied to conduct successful test marketing of new products and distinguish test marketing from initial product testing KEY TAKEAWAYS Key Points Initial product testing and test marketing are very different. The former involves providing consumers with the test product, and… Read More »Test Marketing : The stage where all the variables in the marketing plan

Development Development involves setting product specifications as well as testing the product with intended customer groups to gauge their reaction. LEARNING OBJECTIVES Describe the steps involved in the technical and marketing development stages of new product development KEY TAKEAWAYS Key Points Technical development involves creating a prototype to develop exact product specifications. The technical development stage also involves getting a good idea for the different methods and costs of making… Read More »Development:marketing development stages of new product development

Business Analysis The output of the business analysis stage is a prediction about whether the product is likely to be profitable or not if ultimately produced. LEARNING OBJECTIVES Demonstrate knowledge of the components included in the business analysis stage of product development KEY TAKEAWAYS Key Points The first step in the business analysis process is to examine the likely demand for the product, as well as possible licensing of technologies… Read More »Business Analysis

Concept Testing Concept testing is important for evaluating consumer responses to a product before market introduction. LEARNING OBJECTIVES Explain concept testing, its disadvantages, and alternative methods used to evaluate consumer behavior toward new concepts KEY TAKEAWAYS Key Points Concept testing can also be useful in altering existing attitudes towards existing products in the market. Concept testing uses qualitative and quantitative methods. Concept generation portions of concept testing are generally qualitative,… Read More »Concept Testing

Idea Generation The success of product-driven companies is directly tied to new product development, which is generated through innovative ideas. LEARNING OBJECTIVES Identify the five primary sources of product innovation KEY TAKEAWAYS Key Points The five main sources of innovation are technological breakthough, non-technological development, environment, serendipity, and purposeful development. It is possible to create new ideas and new ways of producing products through non-technical means. This would involve using… Read More »Idea Generation For new products

Strategy A good NPDS can help organize research, prioritize customer needs, and reduce cost overruns, to ensure a smooth development process. LEARNING OBJECTIVES Describe the three common approaches to strategically developing new products KEY TAKEAWAYS Key Points Three common approaches to NPDS are user-centered design, flexible product development, and the phase-gate model. There are many other approaches used as well, and what approach to use depends on the nature of… Read More »New Product Development Strategy