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CHAPTER 6: NEW PRODUCT DEVELOPMENT, AINI SOFIA BINTI MOHD ZOPRI…
CHAPTER 6: NEW PRODUCT DEVELOPMENT
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Importance of NPD in terms of survival of a business
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A Strategy to Sustain the Company
Technology is a synonym for change; its dynamic characteristics demand companies to keep on improving their products or offerings.
The objective: To supersede competitors but even more important is to sustain in the market,
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A Strategy to Grow The Company
Also a strategy for companies to expand its market.
Introducing new products to existing markets
-Introducing new products to new markets
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New Product
Products are created and innovated to respond to the needs and wants of customers..
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Classifications of New Products
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New-to-the-world products
Refers to a completely new product that has never been available in the market.
Also known as Discontinuous Innovations whereby a new technology is used to solve customers' unmet needs.
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New product lines
The product is only new to the company but not necessarily new to the marketplace.
Adding new product lines means the company decides to enlarge or to diversify its offerings and competes with existing brands in the market.
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Addition to existing product lines
A group of products within a certain category.
Companies can create an additional product line that adds to their established product lines.
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Improvements and revisions to existing products
Product newness can be created by introducing variations to its core.
Most products are augmented products or multi-dimensional.
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Lower priced products
Products can even be considered as new when the company offers them at a lower price.
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Repositioned Products
Postioning is a marketing strategy on how a product is set in the consumers' mind.
Repositioning is an attempt to change this perception.
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Ways to improve existing product
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Multi-functional Product
The combination of many function in one product.
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By making adjustments or modification to its current product dimensions
The design of the product is a unique and not in the market yet.
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Product Specification based on the demand needs
Customer demand in terms of the design of the product and easy carry to anywhere.
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Create various models
To provide alternatives to customers as well as part of their creative destruction strategies.
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Product Dimensions
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Branding
Example: Company Apple that produce product with first touch screen technology
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Packaging
The packaging must be a proper materials and do not damage the product.
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Features
-Example: Washing machine can be control and monitor by using apps
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Quality Specifications
Example: Phone that contains higher specification such as higher processor and higher storage.
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NPD Process
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Idea Search
Ideas for new products can be generated by observing the incongruencies or the gaps between benefits or performance expected or wished by consumers and the performances or what is currently available in the market.
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Research and Development
Help companies to respond to market changes more effectively
Understand the thoughts and reactions of customers towards the new technology that is going to be introduced.
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Product Design
The conceptual translation of a new product idea or concept.
Performance criteria must be taken into considerations such as:
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Performance
- The main capabilities of the product
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Reliability
- The consistency of performance and dependability
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Safety in use
- Risk of injury or harm when customers use or engage with the product
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Durability
- The useful life of the product or how long it can last.
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Special features
- Extra characteristics that make the product stands out from the crowd.
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Concept Testing
The main purposes of concept testing are:
Choose the most promising product or service concept from a set of alternatives.
Get an early notion of consumers' acceptance and commercial prospects of the concept.
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Building the Prototype
Five factors determining product usability are:
Ease of learning
- Measuring the level of ease or difficulties faced by users on how to operate or use the product. It is to find out whether the users can comprehend the initial and advance steps in using the product without much help.
Efficiency of use
- Measuring productivity of the product against expected or promised performance such as time taken to complete the tasks.
Memorability
- Users can remember enough on how to use the product in the future.
Frequency and severity of error
- Measuring rate of error occurrences and seriousness of damages
Satisfaction
- Measuring users' level of satisfaction based on their experience in using or testing the product.
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Test Marketing
Carried out prior to a full-scale launching of a new product.
This is the final stage before the company decides to invest on full scale commercialization.
AINI SOFIA BINTI MOHD ZOPRI (2017302875) EH2207C