After studying this chapter you will be able to understand: New-product development strategy, new-product development process, managing new-product development, product life-cycle strategies, additional product and service considerations. | New-Product Development and Product Life-Cycle Strategies LECTURE-15 1 New-Product Development Strategy New-Product Development Process Managing New-Product Development Product Life-Cycle Strategies Additional Product and Service Considerations Topic Outline 2 New-Product Development Strategy Acquisition refers to the buying of a whole company, a patent, or a license to produce someone else’s product New product development refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development Two ways to obtain new products New products are important—to both customers and the marketers who serve them. For companies, new products are a key source of growth. For customers, they bring new solutions and variety to their lives. Yet, innovation can be very expensive and very risky. New products face tough odds. According to one estimate, 90 percent of all new products in America fail. Each year, companies lose an estimated $20 billion to $30 billion on failed food products alone. 3 New-Product Development Process Major Stages in New-Product Development A firm can obtain new products in two ways. One is through acquisition—by buying a whole company, a patent, or a license to produce someone else’s product. The other is through the firm’s own new-product development efforts. By new products we mean original products, product improvements, product modifications, and new brands that the firm develops through its own R&D efforts. In this chapter, we concentrate on new-product development. New products are important to both customers and the marketers who serve them: They bring new solutions and variety to customers’ lives, and they are a key source of growth for companies. In today’s fast-changing environment, many companies rely on new products for the majority of their growth. For example, new products have almost completely transformed Apple in recent years. Sales of the iPhone and . | New-Product Development and Product Life-Cycle Strategies LECTURE-15 1 New-Product Development Strategy New-Product Development Process Managing New-Product Development Product Life-Cycle Strategies Additional Product and Service Considerations Topic Outline 2 New-Product Development Strategy Acquisition refers to the buying of a whole company, a patent, or a license to produce someone else’s product New product development refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development Two ways to obtain new products New products are important—to both customers and the marketers who serve them. For companies, new products are a key source of growth. For customers, they bring new solutions and variety to their lives. Yet, innovation can be very expensive and very risky. New products face tough odds. According to one estimate, 90 percent of all new products in America fail. Each year, companies
