...Chapter 9 New-Product Development and Product Life-Cycle Strategies 1) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and brand management C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development Answer: C Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 2) Product improvements, product modifications, and original products can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products Answer: B Diff: 1 Page Ref: 258 Skill: Concept Objective: 9-1 3) Which of the following is NOT a potential reason for a new product to fail? A) an underestimated market size B) a poorly designed product C) an incorrectly positioned product D) higher than anticipated costs of product development E) ineffective advertising Answer: A Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face? A) All products eventually decline. B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages. C) A firm must be good at developing new products to replace aging ones. D) A firm must be good at adapting its marketing strategies. E) It is difficult to plot the stages as...
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...New-Product Development and Product Life-Cycle Strategies Based on: Philip Kotler et al., Principles of Marketing International Marketing Prof. Dr. Thomas Laukamm Objectives - Understand how companies find and develop newproduct ideas. - Learn the steps in the new-product development process. - Know the stages of the product life cycle. - Understand how marketing strategies change during the product’s life cycle. Fach, Dozent, Semester International Marketing Prof. Dr. Thomas Laukamm 1 Definition - New Product Development + Development of original products, product improvements, product modifications, and new brands through the firm’s own R & D efforts. Fach, Dozent, Semester International Marketing Prof. Dr. Thomas Laukamm 2 New Product Development Strategy - New products can be obtained via acquisition or development. - New products suffer from high failure rates. - Several reasons account for failure. Fach, Dozent, Semester International Marketing Prof. Dr. Thomas Laukamm 3 New Product Development Strategy - New Product Development Process: + Stage 1: Idea Generation • Internal idea sources: R&D • External idea sources: Customers, competitors, distributors, suppliers Fach, Dozent, Semester International Marketing Prof. Dr. Thomas Laukamm 4 New Product Development Strategy - New Product Development Process: + Stage 2: Idea Screening • Product development costs increase substantially in later...
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...CHAPTER 12 PRODUCT AND SERVICE DEVELOPMENT AND ORGANIZATION Introduction The development of new and innovative products and services is clearly of tremendous importance to most organizations. Without a stream of appropriate innovation a company leaves itself vulnerable to having to react to however its competitors decide to innovate. In fact many authorities would disagree with our decision to cover the topic in just one chapter and as part of operations strategy at all. They would say that new product and service development is one of the three major processes that any organization must master in order to succeed (the other two of course being operations and marketing). We would agree with this. In fact, it is because the topic is so important that we include it within our broad treatment of operations strategy; it is not that new product and service development is a subset of operations strategy, rather it is that no operations strategy could regard itself as complete without an understanding of how it interrelates with new product and service development strategy. The way have decided to treat the subject is to look at it through an operations strategy “lens” and explain it in terms of one of the models we introduced earlier – the operations strategy matrix. Most of the chapter is devoted to developing that particular perspective. However, prior to that it discusses the relationship between new product and service development and process development. Key points ...
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...In today’s globalization and competitive world innovative and successful product development is a big challenge to the any industry. Innovation and creativity is function within industry. In a current modern world innovative product development is the involvement of multi-disciplinary. In Nepal also there is fierce competition among industries. Because of this ongoing competition product failure rate is also increasing. Evaluation of the strategies of new product development projects in Nepalese manufacturing industry Aims or purpose of evaluating strategies: The main purpose of evaluating different product development strategies is to successful launch of a new product into market. In order to launch product into market organization must evaluate on different strategies: Innovation: In today’s competitive market, organization must launch innovative product into market. This is the main purpose for the organization. For the product innovation inter-organizational communication is essential for commercial success of new product, which depends on information change about the market and resources availability to make accurate decisions regarding product development. Many companies have reorganized new product development responsibilities into inter functional team efforts, instead of relying solely on a R & D unit. In the hopes of strengthening the information exchange processes organizational management can also encourage the process of inter-functional communication by...
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...Global strategy and leadership Topic 1 1 briefly outline the development of strategy 2. Examine some of the main concepts that inform our knowledge of strategy and leadership. 3. distinguish between the different approached to strategy The rational approach(有时间顺序)eg. The evolutionary approach The essential purpose of this approach is to assess the organization and its environment, achieve a fit between the two and, on the basis of this analysis, forecast and plan for the future. To maximize profit, organizations should position themselves in the markets to which they are best suited. The example of rational approach is five forces (offers leaders a clear and precise methodology for analyzing an organisation’s industry environment to determine its profitability, and a choice of strategy for optimizing performance in these envirments) This is diagnostic tool. Core assumptions are that the environment and the organization are knowable and definable, and that managers can analyze their industry and match their organization’s strategy accordingly. This model emphasis the role of leaders an d managers in creating and driving strategy and change. The processual approach（无序的，entangled）eg, the systemic approach, fuzzy approach. Strategy is sometimes constructed to make sense of what was happened, as much as it orchestrates what will happen. Distinguish between these tow approaches 1) The processualists, focus more on the competencies of organization in a concern to build the...
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...portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on the firm's present and potential products and markets (customers). By considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product-market combinations. Ansoff's matrix is shown below: Ansoff Matrix | |Existing Products |New Products | |Existing | | | |Markets | | | | |Market Penetration | Product Development | |New | | | |Markets | | | | | Market Development |Diversification | Ansoff's matrix provides four different growth strategies: • Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share. • Market Development - the firm seeks growth by targeting its existing products to new market segments. • Product Development - the firms develops new products targeted to its existing market segments...
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...Asnoff`s Strategies for Diversification Asnoff was a mathematician with an expert insight into business management. Asnoff developed a method for measuring the profit potential of alternative product-market strategies. We called it Asnoff`s product market expansion gird. Asnoff`s product market expansion gird: Marketing planning tool which usually aids a business in determining its product and market growth. determined by focusing on whether the products are new or existing and whether the market is new or existing. Alternatives marketing strategies 1234- Existing products to existing market New products to existing market Existing products to new market New products to new market 1-Market penetration This strategy focus on selling your current product range to your existing market in order to increase your market share. In this strategy we focus on promotional activities and pricing offers to increase customers demand. Also royalty programs will help in increasing usage of our current customers to the product. Or by Driving out competitors by buying small companies or Making competition more difficult to them by pricing strategies . Example : -Airways royalty programs (Mile program) , 2-Product development Product development strategy including developing a new product , modifying the current products or brand extension. This strategy require continues R&D investments. Also the company must make market research and focus groups to know more about current customers needs...
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...The Process of New-Product Development When company face a problem‒ they must develop new products, but the odds weigh heavily against success. In all to create successful new products, a company must understand it consumers, markets and competitors and develop product that deliver superior value to customers. To create and produce new products, companies must follow some fundamental steps such as --- Idea generation, Idea screening, Concept development and testing, Marketing strategy development, Business analysis, Product development, Test marketing and Commercialization. So, Our INFINITY Company also followed the steps to develop and produce our new products. The process are mentioned below-- Idea Generation: New product development starts with idea generation. It is the systematic search for new-product ideas. A company typically generates hundreds of ideas, even thousands, in order to find a few good ones. Major sources of new-product ideas include internal sources and external sources such as customers, competitors, distributors and supplies and others. Our INFINITY Company searched for new production ideas. Finally we get some acceptable ideas such as all in all shampoo, Gasp seving net, toothpaste etc. We find ideas through formal research. We know the search for new product ideas should be systematic rather than hapzard. ➢ We appoint our most senior person Mr. Mukter Hossain to be the idea manager. ➢ We create an idea management committee...
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...MANAGING ORGANIZATIONAL STRATEGY Level 6 44-6884-00N 2013-2014 Yorkshire Tea’s strategic choices Module Leader UK: Lilia Zerguit Module Leader Singapore: Jassni Hambali Student Name: Pham Tuan Anh Student ID: 23044827 Words count: 4712 (excluded cover page, table of contents, figure, in-text citation and references) Table of Contents 1. Executive summary 3 2. Introduction 4 3. Critically analyze the major strategic options that Yorkshire tea might be adopted 5 3.1. Yorkshire Tea current strategy overview 5 3.2. Innovation option combine with organic development method and low-price strategy 6 3.3. Internationalization option combine with organic development method 8 3.4. Market development direction combine with strategic alliance method and low-price strategy 9 4. Yorkshire Tea’s internal, external and competitive environment analysis 10 5. Strategic options evaluating 15 5.1. Innovation strategy combine with organic growth method and low-price strategy 15 5.2. Internationalization strategy combine with organic development method 17 5.3. Market development direction combine with strategic alliance method and low-price strategy 19 6. Strategic options recommendation 21 7. Conclusion 23 8. References 23 1. Executive summary Throughout this report is all about the strategic directions, options and methods in order to generate the most possible strategy for Yorkshire Tea Taylors of Harrogate, which is a traditional family company...
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...New product development in modern business strategy and its importance. The survival of a business in a world faced with pressures of globalization or global competition depends on the adaptation of strategies to anticipate response and to adapt to market change both locally and internationally. It is vital that firms remain responsive to the local market while ensuring the integration and coordination of operations across world market to allow for the transfer of knowledge. To ensure growth company’s need to plan and adapt a growth strategy. The growth strategy a company adopts is highly dependent on its current success and position within the market place. Using Ansoff’s Matrix below the four growth strategies can be understood. | Existing Product | New Product | Existing Market | Market Penetration | Product Development | New Market | Market Development | Diversification | Product development growth strategy captures a framework focus on company product or service as well as product development process. This strategy examines the company’s capabilities as it relates to its strengths, weaknesses and core competencies, the competitors capabilities as it relates to their strength, weakness, core competency and strategy and the market needs and opportunities, goals as well as financial resources. The need for new product development are many inclusive of the following: 1) Companies need to adapt to the changing needs of the consumer example the need for...
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...for their products. I will explain the techniques of marketing. The organisations that I will be focusing on are Nike and Kellogg. MARKETING Marketing is the process of promoting and selling products or services including market research and advertisement. Under marketing, there are two strategies that can help an organisation in being successful when selling products which are growth strategies and survival strategies. Growth strategies In the year 1957, Igor Ansoff developed on of the best know descriptions for growing a business and under this strategy, there are four categories which are: 1. Market penetration: It is the measure of amount of sales or adoption pf a product or service compared to the total theoretical market for that service or product. 2. Market development: Market development is a strategy whereby a company expands the potential market or find a new group of buyers as potential customers for its existing products or service. This happens when the company changes it target on the market. 3. Product development: This is another strategy where a company create a new product and trade it to its existing market. The market might not be familiar with the product. 4. Diversification: This is a strategy where a business enters into a new industry which the business is not currently in. For example, a business produces a new product to a new target market. Survival strategies Huge companies nowadays need a survival strategy to survive...
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...Assignment on New Product development Course Title : Principles of Marketing Course Code : BBA 2107, Sec: D SUBMITTED TO: Jannatul Mawa Nupur (Senior Lecturer ) Faculty of Business Northern University Bangladesh. SUBMITTED BY: Md. Razaul Karim ID: BBA 060101715 Md. Musfiqur Rahman I.D: BBA 080102476 Ayeasha Siddika ID : BBA 060101555 Md. Ariful Islam ID : BBA 080102596 Date of Submission: 11th May, 2009. [pic] Table of Content |Name of the Contents |Page Number | |Definition |1 | |Packaging Fish |2-3 | |Mum Juice |4-5 | |Packaging Vegetable |6-7 | |Solar Mobile Battery |8 | ...
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...5.0 STRATEGY FORMULATION Strategy formulation is the process by which an organization chooses the most appropriate courses of action to achieve its defined goals. This process is essential to an organization’s success, because it provides a framework for the actions that will lead to the anticipated results. Strategy formation is the process by which an organization develops and implements a strategy. All steps of the process should be followed in order because they build upon each other. The other steps of the process include value assessment, vision and mission formulation, strategy design, performance audit analysis, action plan development, contingency planning and implementation. 5.1 Integration Strategies In the competitive world of business, companies generally do whatever it takes to secure their stature in the marketplace. One of the most effective means to this end involves what is referred to as vertical integration, which takes on two forms: forward and backward integration. Forward integration focuses on the manner in which a company oversees its product distribution. On the other hand, the backward form concentrates on how a company regulates its goods or supplies. 5.1.1 Forward integration Forward integration is a type of vertical integration which a supplier acquires a manufacturer or a manufacturer acquires a distributor. Businesses engage in forward integration either to generate a higher margin from a key input which it owns or produces or to better...
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...06/22/2014 1 2 Strategy The purpose of this section is to describe what should be the strategy of technologically driven company. Here we have taken Intel as technologically driven company. This section determines how a technology strategy will help the Intel Company to reach at success. Technology Driven Strategy: A technology driven strategy starts by expressing the capabilities required achieving the business strategy, and after that the technology required to enable those capabilities. Thorough knowledge of the operating models, business architecture, capabilities, and processes are actionable inputs for one smart business technology management team. Three critical elements are incorporated by a true business-driven technology strategy: an Enterprise Technology Strategy, an Enterprise Business Strategy, and a Technology Function Strategy. Technology-driven companies normally achieve directly below concept which be able to evolve automation of designs products. These companies approach are decided through respective design unit, frequently produce brand by exhaustively investigating a retail also completely accepting a current retail necessities. Automation compelled strategy contain numerous benefit. They allows the business into quickly bring brand into retail as well as accordingly infrastructures brands architectures opinions about business proficiency (Evens, P. & Wurster, T. 1997). 2 3 Summary of Intel's Technology Strategy: The strategy of Intel’s is to supply...
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...Strategic Management Seminar Work Topic: “Classification of Strategies” Moritz Irmen 14.11.2012 University of South Bohemia Ceske Budejovice Table of Contents 1. Introduction 2. Strategies in General 1. Market Strategy 2. Product and Service Strategy 3. Organization Strategy 4. People Strategy 5. Finance Strategy 3. Ansoff Matrix – Applied Strategies to four different senarios 1. General Information 2. Product Penetration 3. Product Development 4. Market Development 5. Diversification 4. Conclusion 1. Introduction Strategies are often being used to adapt to different scenarios in the market and push the company in the better situation to handle the new and often inexperienced environment. They are specifying the organization’s mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives. The wide rage of strategies, in every field/part in an organization, allows companies to find the right strategy for implementation in different kinds of scenarios. 2. Strategies in General 1. Market Strategy Market strategy is an essential part of the strategic management, in order for companies to succeed in the comparative market that exists today. This strategy takes in account the company’s relationship to existing and potential customers, its knowledge...
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