PM Flashcards

What is the NPD process?

The New Product Development (NPD) Process is the step-by-step method of creating and launching new products, from idea generation to market launch

Phase 1 – Opportunity Identification

Spot market gaps or unmet needs by conducting market research, analyzing trends, and understanding customer problems.

Phase 2 – Concept Generation

Brainstorm multiple ideas to meet identified opportunities. Use trends, feedback, and competitor analysis for inspiration.

Phase 3 – Concept Evaluation

Assess ideas based on market potential, feasibility, and profitability. Test concepts with target audiences and refine.

Phase 4 – Development

Turn the idea into a real product by designing, prototyping, testing, and preparing for production and distribution.

Phase 5 – Launch

Introduce the product to the market with a clear marketing strategy, sales plan, and post-launch feedback collection.

Critical Steps for Successful NPD

• Research the market.

• Define a clear value proposition.

• Test prototypes.

• Plan a strategic launch.

• Gather feedback after the launch.

Key Guideposts for NPD

• Customer Focus: Meet real needs.

• Agility: Be flexible and adapt.

• Competitive Edge: Stand out in the market.

• Risk Awareness: Identify and plan for challenges.

Phases of NPD

P!: Opportunity Identification

P2: Concept generation

P3: Concept Evaluation

P4: Development

P5: Launch

What is a SWOT Analysis?

A tool to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a brand or product

Strengths (SWOT)

Internal resources or advantages, like brand reputation, technology, or skilled teams.

Weaknesses (SWOT)

Internal challenges that limit success, like limited resources, poor brand recognition, or lack of expertise.

Opportunities (SWOT)

External chances for growth, like new trends, emerging markets, or technological advancements.

Threats (SWOT)

External risks, like competitors, changing regulations, or economic shifts.

What is TAM (Total Addressable Market)?

TAM estimates the total revenue potential if a product captures 100% market share in its target market.

How to Assess TAM?

• Use industry reports (e.g., NPD, Nielsen).

• Analyze Amazon best-seller rankings.

• Evaluate demographic data.

• Review the purchase funnel (awareness, trial, repeat) to refine estimates

Why is Assessing TAM Important?

helps identify the market size, growth opportunities, and potential gaps to target.

What is Product Portfolio Management (PPM)?

analyzing and managing a company’s product mix to maximize growth, minimize risk, and ensure alignment with business goals.

How to Use PPM to Evaluate New Products?

• Assess each product's market potential and profitability.

• Evaluate strategic fit with the company’s goals.

• Prioritize products that align with customer demand and trends.

• Remove or improve products with low performance.

How to Generate New Product Concepts?

• Conduct brainstorming sessions.

• Use customer feedback and market trends for inspiration.

• Analyze competitor products for gaps or opportunities.

How to Evaluate New Product Concepts?

• Assess market demand, feasibility, and profitability.

• Use concept testing with target audiences.

• Consider how the product fits in the existing portfolio and its potential for success.

How to Generate New Product Concepts?

Use brainstorming and ideation techniques to create innovative product ideas based on market needs and trends.

Types of Innovative New Products

• New to the World

• New to the firm

• Additions to existing lines

• Improvements to existing products

• Repositionings

• Cost reductions

IDEO Brainstorming Techniques

• Defer Judgment

• Encourage wild Ideas

• Build on ideas of others

• stay focused

• one conversation at a time

• Be visual

• Go for quantity

What is a Unique Selling Proposition (USP)?

A USP is a statement that clearly defines how your product or service is different and better than the competition.

Structure of a Strong USP

• Identify the ONLY product in its category.

• Highlight the unique experience it offers.

• Specify the target consumer or client it serves.

What is Skimming Pricing?

Charging a high introductory price with heavy promotion to maximize profits early on.

When is Skimming Pricing Successful?

• Strong demand for the product.

• Product is legally protected (like patents).

• Offers a technological breakthrough.

• Competitors face entry barriers.

What is Penetration Pricing?

Setting a relatively low price when launching to attract mass adoption and gain market share.

Key Features of Penetration Pricing

• Requires high sales volume to break even.

• Low prices attract additional buyers.

• Common for new technologies and brands.

What is Status Quo Pricing?

Pricing products identical or similar to competitors for simplicity.

Pros and Cons of Status Quo Pricing

Advantage: Simple to implement.

Disadvantage: Ignores demand, cost, or profit factors.

What is a Positioning Map?

A visual tool that shows your opinion of brand positions relative to each other on opposing but equally appealing axes.

How to Use Positioning Maps?

• Identify opportunities where competition is low.

• Understand how brands are perceived relative to one another.

What is a Perceptual Map?

A map based on the consumer's perspective, showing how they view brands in the market.

How Do Perceptual Maps Help?

• Reveal gaps and opportunities in the market.

• Help evaluate how your brand is positioned against competitors.

What are the 10 Steps to Defining a Research Test?

• Define Objectives

• Refine target audience

• Identify key questions

• Determine Data Type

• Formulate Survey Size

• Evaluate contact volume

• Develop Information Level

• Select Output Format

• Negotiate Timing & Costs

• Secure Buy-In

Research Techniques for Opportunity Identification

• Trend Analysis

• Ethnographic Research

• Social Listening

• Expert Interviews

• Customer Complaints Analysis

Research Techniques for Concept Generation

• Focus Groups

• In-Depth Interviews

• Co-Creation workshops

• Brainstorming sessions

• Qualitative Consumer Insights

Research Techniques for Concept Evaluation

Concept Testing Surveys

Monadic & COmparative Testing

Conjoint Analysis

Price sensitivity Meter

Simulated Test Markets

Research Techniques for Development

• USability Testing

• Sensory Testing

• Eye Tracking

• A/B Testing

• Prototype Testing

Research Techniques for Launch Planning

• Test Market Launch

• Virtual Reality Testing

• Ad Concept Testing .

• Copy Testing

• Shelf Placement Analysis

• Retail Buyer Interviews

components of the new product protocol

• USP – What's the unique selling proposition?

• Target Audience – Who is it for?

• Top Attributes – Highlight 3 key physical or emotional traits.

• Competitors – Identify 3 top competitors.

• Launch Timing – When is the product launch?

• Marketing Idea – What's one key launch strategy?

• Financial Goal – What is the Year 1 revenue goal?

What are the 5 Levels of the Purchase Funnel?

Awareness

Interest

Desire

Action

Loyalty

How to Project Sales Volume Using the Marketing Funnel?

Estimate Awareness

Track ENgagement

Gauge Desire

Analyze Conversions

Refine & Optimize

What is a 360° Marketing Launch Plan?

• Digital Ads

• Outdoor Ads

• In-Store promotions

• Events

• PR

• Email Marketing

Key Elements of outdoor & Digital advertising

• Communicate USP

• Attract Attention

• Be Brief

• Clear & Compelling

• Memorable

7 Keys to Working in Groups

1. Share Strengths & Weaknesses

2. Define Expectations

3. Align on Roles & Labor Division.

4. Acknowledge Uneven Workloads

5. Meet Frequently

6. Accept Diverse Views .

7. Value Tough Challenges

Keys to Building a Creative Culture

• Accountability

• Champion SUpport (leadership backing for projects)

• Teamwork Processes (Encourage collaborative processes)

• Acceptance of Risk (Allow room for failure & innovation

• Continuous Learning (Feedback & Improvement)

• Bonus: Team Motivation (Celebrate Successess, awards, newsletters)

10 Ways Top Companies Excel at New Product Development (NPD)

• Defined NPD Process

• Market Research

• Portfolio Analysis

• Global Market Strategies

• Social Media Insights

• Formal Idea Processes

• Open Innovation

• Senior leadership

• Cross-functional collabs

• Design for Engineering

High Risk, High Reward

New-to-world innovations.

Low Risk, Low Reward

Cost reductions or minor improvementsEnhancing existing product lines.

Balanced Risk

Enhancing existing product lines.

Real-World Product Innovation Example (Hot Wheels)

• Challenge – Losing share to private labels, cost issues.

• Action – Design challenges, prototypes, strong USP-focused marketing.

• Result – Reclaimed shelf space and market presence.

Red Ocean Strategy

A business strategy focused on competing in existing market spaces, where companies try to outperform rivals to capture a larger share of the market.

Blue Ocean Strategy

A business strategy that seeks to create new market spaces, making the competition irrelevant by offering unique value propositions.