MGMT 105 Chapter Notes - Chapter 11: Test Market, Longrun
17 Jul 2018
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New products are important to sustain growth, increase revenues and profits, and. Being first on the market has a number of advantages. A new product is a product new to the world, the market, the producer, the seller, or some combination of these. A new-product strategy links the new-product development process with the objectives of the marketing department, the business unit, and the corporation. Product development is a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products. A concept test evaluates a new-product idea, usually before any prototype has been created. New-product ideas that survive the initial screening process move to the business analysis stage, where preliminary figures for demand, cost, sales, and profitability are calculated. Costs and revenues are estimated and compared. In the early stage of development , the r&d or engineering department may develop a prototype of the product.
