MKT523 Innovation and New Product Development - Chapter 1

Flashcards covering key vocabulary and concepts from the lecture notes on Innovation and New Product Development.

Innovation

The process of creating new ideas, products, or services that provide unique solutions to existing problems.

Innovation (Drucker, 1985)

The means by which entrepreneurs exploit change as an opportunity for a different business or a different service.

Innovation

The ability to apply creative solutions to problems and opportunities to enhance or to enrich people’s lives.

Innovation(Kuratko, 2004)

Entrepreneurs innovate by converting opportunities into marketable ideas.

Incremental Innovation

Small improvements to existing products or services.

Disruptive Innovation

New products or services that disrupt existing markets.

Architectural Innovation

New product or service using existing technologies for another market.

Radical Innovation

New products or services using new technologies.

Incremental Innovation

Steady improvements based on sustaining technologies.

Radical Innovation

Fundamental rethink based on disruptive technologies.

Staying Competitive (Importance of Innovation)

Helps businesses stay ahead of competitors by creating unique products or services that cater to the needs of customers.

Boosting Productivity (Importance of Innovation)

New technologies and processes can streamline workflow, reduce resources, and increase efficiency.

Driving Growth (Importance of Innovation)

Innovation creates new opportunities for revenue, expansion, and market share.

Fostering Sustainability (Importance of Innovation)

Innovation can promote sustainable practices that reduce environmental impact and build stronger communities.

Competitive Advantage (Why is Innovation Important?)

Businesses stay ahead of competitors by offering unique products or services that meet customer needs more effectively.

Meeting Customer Needs (Why is Innovation Important?)

Companies can better understand and respond to changing customer demands, improving customer satisfaction and loyalty.

Business Benefits (Why is Innovation Important?)

Innovation drives revenue growth, stimulates employee engagement, and enhances brand reputation, attracting new customers and investors.

Ideation and Brainstorming

Generate a diverse range of ideas through creative brainstorming sessions and encourage collaboration among team members.

Understanding Market Trends

Identify emerging trends, consumer behaviors, and market opportunities to inform your innovation strategy.

Concept Development

Refine and develop the most promising ideas into viable product concepts, considering factors like feasibility, market fit, and customer preferences.

Testing and Prototyping

Iteratively test and refine prototypes to gather feedback and validate the product's functionality, usability, and appeal to target customers.

Implementation and Launch

Prepare for successful product implementation by developing a comprehensive go-to-market strategy, including production, marketing, and sales plans.

Risk Management (Challenges in Innovation)

Innovation involves uncertainty and inherent risks. Effective risk management strategies can mitigate potential setbacks and maximize the chances of success.

Resource Allocation (Challenges in Innovation)

Allocating resources wisely is crucial to ensure the successful execution of innovation initiatives while optimizing productivity and controlling costs.

Time Constraints (Challenges in Innovation)

Innovating within time constraints requires efficient project management and prioritization to meet deadlines while maintaining quality and innovation.

Uncertainty and Market Changes (Challenges in Innovation)

Anticipating and adapting to market changes is essential to stay relevant and seize emerging opportunities.

Risk Aversion (Barriers to Innovation)

Fear of failure or the unknown can discourage innovation.

Lack of Resources (Barriers to Innovation)

Insufficient funding, manpower or skills can hinder innovation.

Resistance to Change (Barriers to Innovation)

Existing structures and processes may resist new ideas and approaches.

Cross-functional Collaboration (Tips for Successful Innovation)

Encourage collaboration and communication across departments to leverage diverse expertise and perspectives, fostering innovation.

Market Research and Customer Feedback (Tips for Successful Innovation)

Conduct thorough market research and gather customer feedback to gain insights, validate ideas, and refine products to better meet customer needs.

Continuous Learning and Improvement (Tips for Successful Innovation)

Promote a culture of continuous learning, experimentation, and adaptation to drive ongoing improvement and foster innovation.

Collaboration (Strategies for Fostering Innovation)

Encourages diverse perspectives, teamwork, and risk-taking.

Cultivate Creativity (Strategies for Fostering Innovation)

Provide training, rewards, and incentives to foster new ideas and approaches.

Invest in Technology (Strategies for Fostering Innovation)

Provides tools and resources to support innovation and improve efficiency.

Tangible and Intangible (Definition of a Product)

A product can be a physical item or a service that provides value to customers.

Customer Satisfaction (Definition of a Product)

A successful product fulfills customer needs and exceeds their expectations.

Features and Benefits (Definition of a Product)

A product includes both its functional attributes and the advantages it offers to consumers.

Disruptive Innovation

Introducing breakthrough products that fundamentally change industries and create new markets.

Sustainable Innovations

Developing eco-friendly products that minimize environmental impact and promote sustainability.

Copycat Competitors

Companies that replicate successful products of others to capitalize on their market popularity.

Counterfeit Goods

Illegally produced imitations that infringe on intellectual property rights of genuine brands.

Expanding Product Lines

Introducing variations or extensions of existing products to cater to different customer preferences.

Increase Market Share

Line extensions allow brands to capture additional market segments and increase overall sales.

Brand Diversification

Using an established brand name to enter new product categories and leverage brand equity.

Brand Loyalty

Capitalizing on customer loyalty and recognition to drive acceptance of brand extension products.

Product-market fit

Understanding customer needs and developing a solution that aligns perfectly with those needs is essential.

Effective marketing and branding strategies

Crafting a compelling brand story, establishing an emotional connection with consumers, and employing targeted marketing campaigns are crucial elements for gaining visibility and building a loyal customer base.

Market Demand

Refers to the quantity of a product or service that all consumers in a particular market are willing and able to purchase at a given price during a specific period of time.

Feasibility Study

Preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is viable or worth pursuing.

Market Feasibility Study

Assessment of the overall appeal of the market for the product or service being proposed.

Organizational Feasibility Study

Determining whether the business has the necessary and sufficient human resource to bring a particular product/service idea to market successfully.