BMGT 350 Chapter Notes - Chapter 8: New Product Development, Crowdsourcing, Marketing Strategy
22 Apr 2016
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Chapter 8- new product development and product life-cycle strategies. New products: bring new solutions and variety to customers" lives, key source of growth for companies, many companies rely on new products for majority of their growth, face tough odds. 66% of new products fail within 2 years. 96% of all innovations fail to return their development costs. Why do new products fail: company may overestimate market size, actual product may be poorly designed, incorrectly positioned, launched at the wrong time, poorly advertised, priced wrong. Major sources of new product ideas include: internal sources: Only 33% of companies surveyed rated traditional r&d as leading source of innovation ideas. Intrapreneurial programs which encourage employees to develop new product ideas: external sources: Distributors (close to market and can pass along information about consumer problems and new product possibilities) and suppliers (tell company about new concepts, techniques and materials that can be used to develop new products) Competitors give clues about their new products.
