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Exam 1 Review

by: Ally Rose

Exam 1 Review MKT 380

Ally Rose
GPA 3.925
New Product Development

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New Product Development
Study Guide
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This 7 page Study Guide was uploaded by Ally Rose on Monday October 12, 2015. The Study Guide belongs to MKT 380 at University of Miami taught by recarey in Fall 2015. Since its upload, it has received 66 views. For similar materials see New Product Development in Business at University of Miami.

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Date Created: 10/12/15
MKT 380 New Product Development Test 1 Review Questions Chapter 1 1 What is innovation refers to the overall process whereby an invention is transformed into marketable products or services 2 What is a disruptive innovation a term of art coined by Clayton Christensen describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market eventually displacing established competitors 3 What are the different categories of new products Newtotheword reallynew products Inventions that create a whole new market Ex Polaroid camera iPod and iPad HP laser printer Rollerblade inine skates PampG Febreze and Dryel 10 Newtothefirm products Products that take a rm into a category new to it Ex PampG s rst shampoo or coffee Hallmark gift items ATampT Universal credit card Canon laser printer 20 Additions to existing product lines Line extensions and ankers that esh out the product line in current markets Ex PampG s Tide Liquid Bud Light Special Kline extensions drinks snack bars crystals 26 lmpro vements and re visions to existing products Current products made better Ex PampG s continuing improvements to Tide detergent Ivory soap 26 Repositionings Products that are reta rgeted for a new use or application Also includes retargeting to new users or new target markets Ex Arm amp Hammer baking soda sold as a refrigerator deodorant aspirin repositioned as a safeguard against heart attacks Marlboro retargeted as a man s cigarette 7 Cost reductions New products that provide the customer similar performance but at a lower cost May be more of a quotnew productquot in terms of design or production 11 4 What are the 5 phases of the Basic New Product Process 1 Opportunity identi cationselection generate new product opportunities and sort them 2 Concept generation select a high potential opportunity and then generate product concepts that t the opportunity 3 Concept project evaluation evaluate the concepts and select the best two or three 4 Development design the prototype prepare the marketing plan prepare the business plan test market 5 Launch commercialize the product begin distribution get feedback of success or failure Chapter 2 1 2 What is a new product concept a form or a technology plus a clear statement of needbene t What are the different categories of opportunities An underutilized resource a manufacturing process an operation a strong franchise A new resource the discovery of a new material with many potential uses An external mandate a stagnant market combined with competitive threat that forces the rm to search for new opportunities An internal mandate new products used to close longterm sales gap or to ll senior management desires What are the stages of the conceptproject evaluation 1 Screening pretechnical evaluation GoNo go 2 Concept testing with customers GoNo go 3 Full screen scoring GoNo go 4 Project evaluation begin preparing product protocol agreement between the groups Explain the bene ts of the new item What is a full screen The use of a scoring model to determine to go ahead with development or not At what phase of the NPD process is the prototype created Phase 4 development prototype is built to test the concept At what phase of the NPD process is the marketing plan developed Phase 4 development At what phase of the NPD process does market testing take place Phase 4 development Chapter 3 1 What is a product platform Platform product families that share similarities in design development or production process use ideas for one product in other products as well standarized 2 What is a Product Innovation Charter PIC A critical strategic document the Product Innovation Charter PIC is the heart of any organized effort to commercialize a new product It is the quotwho what where when and whyquot of the product development project 3 What are the contents of the PIC It contains the reasons the project has been started background the goals objectives guidelines and boundaries of the project 4 What are the four core competencies that a company could use to de ne their focus 1 Technology strength 2 Product experience focus on a speci c business 3 Customer franchise focus on the type of customer 4 Enduse experience focus on the enduse 5 What is the Product Portfolio What are its objectives A statement of how the new product is going to t within the organizations other products two things you need PIC and product portfolio How does the new product t with the rms strategy Strategic alignment the portfolio ensures that the mix of products re ects the PIC new products should be quoton strategyquot Assessing portfolio value projects should be selected so that the commercial value of products in pipeline is maximized Project balance the portfolio should make it easy to select products that balance the existing product line Number of projects avoid resource commitments to too many projects as it could lead to underfunding Chapter 4 1 What are some techniques that management can use to stimulate creativity among creative people a Competitive teams b ldea bank of unused ideas for possible reuse c Encourage interaction even in how of ces are laid out 2 What are some of the barriers to rm creativity Crossfunctional diversity Diversity leads to more creative stimulation but also to problem solving dif culties Allegiance to functional areas Team members need to have a stake in the team s success or won t be loyal to the team Social cohesion lf interpersonal ties among team members are too strong candid debate may not occur resulting in less innovative ideas Role of too management Management should encourage the teams to be adventurous otherwise only incremental changes will occur 3 What are the 3 required inputs to creating a concept Form technology and a clear needbene t 4 What would be the best sequence of inputs when generating a concept Start with a bene t or need then develop technology then produce form best Firm develops technology a nds match to need in a customer segment a produces form Firm envisions form a develops technology to product form a tests with customer to see what bene ts are delivered very risky a solution looking for a problem When does a new product really come into being When it is successful in the market place How are quotuser toolkitsquot used in the innovation process A set of design tools that customers can use to customize a product best suited to them Product con gurators are a kind of user toolkit quotbuild your own productquot customers are used to build a product that they want nike customized shoe What is quotcroudsourcingquot and how is it used in the innovation process Open idea solicitation from customers used as a creative source ex lays do us a avor threadless Who are quotlead usersquot and how are they used in the innovation process Firms or individuals that are at the front end of a signi cant current trend Ex xgames athletes for new highperformance snowboards Can be an important source of new product ideas They have the best understanding of the problems faced and can gain from solutions to these problems In many cases they have already begun to solve their own problems or can work with product developers to anticipate the next problem in the future They are asked for outcomes so that the company can gure out product improvements What is quotopen innovationquot and what are its bene ts The process by which a rm searches externally for research innovation technologies and products lncreases speed of research and innovation cuts risks and generates new innovative ideas Viewed by some as the dominant innovation model of the 21st century Sources such as inventors startup companies or university laboratories are actively sought out Open innovation is both in and outbound obtain knowhow technology patents etc from external partners and also monetize your technologythrough licensing sale etc that is no longer consistent with corporate strategy However open innovation is not outsourcing The external sources are viewed as complementary to internal sources so that innovation can be more ef cient Chapter 5 1 2 3 4 5 6 What is the most common source for the needs and problems of a firm s customers lnterna records routine contacts with customers ie sales call reportsBEST Direct inputs from technical and marketing departments disadvantage suggestions are usually perceptions of what the problem is Probem analysis with customers ask them what are the problems with the current product not what they want Scenario analysis anticipating future problems What are the 4 methodologies that a rm can use to contact their customers a Interviewing oneonone b Focus groups c Observation of product in use d Role playing not common What is the most productive methodology that a rm can use to use for gathering a list of consumer problems Interviewing To directly contact your customers How are focus groups used in analyzing customer problems The focus group is designed to yield the exploratory and depthprobing type of discussion required What does the observation method of gathering information about customer problems consist of Firms observe customers using products Ex using car What is scenario analysis Scenario analysis solving future problems by posing a quotwhat ifquot queonn Steps 1 Paint a scenario 2 Study it for problems and needs 3 Evaluate those problems and begin to solve the most important ones Forms Extending studies take a present trend and extend it into the future Leap studies make a bold prediction of a future scenario Wild Card studies consider the effect of future highimpact low probability events 7What is brainstorming Group creativity method where people react to each others thoughts Use of human synergy interaction and teamwork Rules for a Brainstorming Session No criticism allowed Freewheeling the wilder the better Nothing should slow the session down Combination and improvement of ideas 8What is an online community and their use in the innovation process any group that interacts using online social networking or a similar medium Use of online communities helps you solve the customer problem a Listen to the quotvoice of the customerquot b Monitor public communities and blogs to spot new trends and opportunities c Establish rapport with customers and enable customer support d Build emotional bonds with the customer Drawbacks They are hard work Costly and time consuming must hire moderators and facilitators Takes time for the community to mature Hard to organize the content so it is easy for the members to nd Member privacy con dentiality content ownership and other legal Issues Chapter 6 1 What is the difference between a feature a function and a bene t of a product Features what the product consists of Functions what the product does and how it works Bene ts how the product provides satisfaction to the user Theoretical sequence the feature permits a function which provides a bene t 2 What are the 3 techniques of perceptual mapping Determinant gap map produced from managerial inputjudgment on products AR perceptual gap map based on attribute ratings by customers OS perceptual map based on overall similarities ratings by customers 3 What is gap analysis The purpose of the map method is to nd a spot where a gap offers potential as a new item Analyzing map attributes to nd unserved gaps Management customer perceptions may be different Who decides on the relative positions of the brands on AR perceptual gap mapping Gather customers perceptions of the available brands on each of the attributes best Customers make decisions of attributes not on the list What is the basis of OS perceptual gap mapping What weakness of AR mapping does it address Sometimes users make purchase decisions using attributes they cannot identify phantom attributes Also some users have difficulty scoring attributes even when they are aware of them because they are unable or unwilling to do so OS techniques do not require customers to rate choices on individual attributes Rather these techniques run on perceptions of overall similarities between pairs of brands Using Multidimensional Scaling MDS a perceptual map is developed from the similarities data coke pepsi l dr pepper


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