BUAD 332 Study Guide - Midterm Guide: Business Analysis, Test Market, Customer Switching
Document Summary
New product development: the development of original products, product improvements, product modifications, and new brands through the firm"s own product development efforts. New product development is very expensive and very risky. 70% to 90% of new consumer products fail within 12 months. Idea screening: concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialization. Process used to spot good ideas and drop poor ones. Executives provide a description of the product along with estimates of market size, product price, development time and costs, manufacturing costs, and rate of return. Evaluated against a set of company criteria for new products. Describes the target market, planned value proposition, sales, market share, and profit goals. Outlines the product"s planned price, distribution, and marketing budget. Describes the planned long-run sales and profit goals, marketing mix strategy. Involves a review of the sales, costs, and profit projections to assess fit with company objectives.
