NEW   PRODUCT DEVELOPMENT

see also BCS 555 assignment based on this unit
 witiger.com/senecacollege/BCS555/assignment555homework1.htm

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.	This page used in the following courses taught by Prof. Richardson . CCT 322 BCS 555 MRK 106

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New Product Development Process

New Product Development Five steps in the New Product Development Process, as understood by most marketing textbooks 1. Idea Generation - thinking about it  2. Screening - getting opinions  3. Idea Evaluation - estimate costs, revnue, profit, do market research  4. Development of Product - physically design and manufacture the product  5. Commercialization - mfg. large number of product, distribute in the stores

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While the Dilbert cartoon is funny, it represents the challenge that companies always have coming up with new products

• people like using the old product - especially software products that take some time to learn
• people don't like the expense of a new product
• people don't like it when parts or tech support is not available for an old product so the resent companies always churning out new products
• people want to wait until the new product has been on the market for some time so they can evaluate whether it is useful to switch or not
• one of the prime reasons companies feel compelled to come out with new models is because of the competitive environment - their competition will see what is selling, and make a new version with better features, so the original manufacturer has to come up with a "new and improved" model or customers will switch to the competition

New Product Development Process Chpt 7 p. 209

New Product Development as explained exactly in the Shapiro book, 10th edition Chpt 7 page 209 1. Generating new-product ideas 2. Screening 3. Business Analysis 4. Prototype Development 5. Market Tests 6. Commercialization - the only step that Shapiro added was the step for Market Tests -which some people say is actually a sub-set of Prototype Development because, when you make a prototype, it is for the purpose of testing it to see if the idea really works

Chapter 10

Five steps in the New Product Development Process 1. Idea Generation - thinking about it sources of where new ideas come from (see also  www.witiger.com/internationalbusiness/countryinfo.htm )  employees feedback from sales staff who get comments from customers direct feedback from customers news stories government agencies new regulations established may require some innovations industry associations consumer surveys competitors see  www.witiger.com/ecommerce/competitorintelligence.htm  accident and chance

New Product Development and the Net Chpt 8 in Hanson

New Product Development - physical products - cyber products Internet Time Two important apsects, says Prof. Ward Hanson in his book First - it refers to the rapid change and evolution of internet tools,  markeplace (the customers)  business practices Second - it is also the acceleration of  new product development,  competitve activity  and business tactics that are made possible by the internet

New Product Development Process Chpt 7 p. 209

How New Product Characteristics affect adoption, as explained in the Shapiro book, 10th edition Chpt 7 page 214 1. Relative Advantage - the Competitive Environment ... better price than competition ... better features than competition 2. Compatibility - does it fit with what the consumers want to do 3. Complexity - is it easy to use - adoption resistance must be comparably low 4. Trialability - you have to get people to sample it 5. Observability - can you actually see it work - is it obvious it is effective and saves time and money