- Created by: erised
- Created on: 15-05-17 11:18
What is a new product?
- Product Replacements - revision and improvements to existing products (e.g. Iphone 7) - Repositioning (same product but targeted to a new segment e.g. Old Spice products) - Cost Reductions (existing products reformulated so they cost less to produce
- Additions to existing lines - To create greater product depth (e.g. hair shampoo for coloured, curly, blonde, straight hair)
- New Product Lines - A move to a new market to widen the product line portfolio (e.g. if Pantene lanuches a body moisturiser line)
- New-to-the-world products - Quite risky as its difficult to predict demand and consumers needs to learn how it works and how to consumer it. Innovation is very imporant (e.g Amazon Echo, hover boards)
- Idea Generation
- Concept Testing
- Business Analysis
- Product Development
- Market Testing
Innovation means the steps arn't so rigid but happen simultanously within the process of NPD.
A process instititionalised by the company as well as being dependent on the actions of individuals. Rold of management is central in the innovation process.
- Process Innovation
- Management innovation
- Production innovation
How to encourage innovation?
- Establishing external links and collaberations with other firms
- Internal managerial decisions to promote an innovation culture and to provide funds for R&D.
- Use the customer
The role of the customer
1. Customer as a resource - a source of innovation. Cons:
- Lead to imitative, unimaginative products. Customers do not understand the techonolgy and/or the emerging markets. Definitely not for new-to-world products.
- Customer contributions are limited by the tools used by marketers. Enquiry mechanisms limit the richness and frequency of feedbacks.
- Can only use a select group of customers which might be unrepresentative of the customer popluation.
- How do you select the customers? How to create an incentive to partcipate? How to process the information?
The Role of the Customer
2. Customer as a co-creater. Customer participaton in product design and development. Enhances self-esteem, opportunities or customisation. Cons:
- Increase the project uncertainty and time-frames
- Need to integrate them in the internal NPD process
- Support mechanisms need to be in place to enhance interaction/conversation
The Role of the Customer
3. Customer as a user. Involvement in product testing and support. Cons:
- Customer contributions can be limited by the high cost of providing facilities to structure and channel their inputs.
- How to ensure the involvement of a diverse set of customers