Chapter 9 - New-product development and product life-cycle strategies presents the following content: New-product development strategy, new-product development process, managing new-product development, product life-cycle strategies, additional product and service considerations. | Chapter Nine New-Product Development and Product Life-Cycle Strategies 1 New-Product Development and Product Life-Cycle Strategies 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 Note to Instructor 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, . | Chapter Nine New-Product Development and Product Life-Cycle Strategies 1 New-Product Development and Product Life-Cycle Strategies 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 Note to Instructor 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 New-product development starts with good new-product ideas—lots of them. For example, Cisco’s recent I-Prize “crowdsourcing” challenge attracted 1,200 ideas from 2,500 innovators in 104 countries. The remaining steps reduce the number of ideas and develop only the best ones into profitable products. Of the 1,200 ideas from Cisco’s I-Prize challenge, only a handful were developed. 4 New-Product Development Process Idea generation is the systematic search for new-product ideas Sources of new-product ideas Internal External Idea Generation Note to Instructor Discussion Question In groups of four come up with one idea for a new product. It might be helpful if you assign each group a category including kitchen products, office supplies, laptop accessories, dessert products, .
