CHAPTER 8

Q1: What is a new product?

A: Any product that is new to the company, including original products, improvements, modifications, or new brands.

Q2: Why do new products matter?

A: They are essential for long-term growth, competitive advantage, and responding to changing customer needs.

Q3: What are common sources of new product ideas?

A:

• Internal (R&D, employee ideas)

• External (customers, competitors, suppliers)

• Crowdsourcing (open idea submissions from the public)

Q4: What is customer-centered new product development?

A: Creating products based on a deep understanding of customer problems and needs.

Q5: What are the 8 steps in the new product development process?

A:

1. Idea generation

2. Idea screening

3. Concept development and testing

4. Marketing strategy development

5. Business analysis

6. Product development

7. Test marketing

8. Commercialization

Q6: What is idea screening?

A: Evaluating new ideas to identify those worth pursuing using criteria like R-W-W (Real? Win? Worth it?).

Q7: What is concept development and testing?

A: Turning an idea into a detailed product concept and testing it with target customers.

Q8: What happens in marketing strategy development?

A: Creating an initial strategy for launching the product, including target market, value proposition, price, and promotion.

Q9: What is business analysis in this process?

A: Reviewing sales, costs, and profit projections to assess the financial attractiveness of the new product.

Q10: What is product development (step 6)?

A: Turning the concept into a physical prototype to ensure it works and appeals to consumers.

Q11: What is test marketing?

A: Testing the product and full marketing program in realistic market conditions.

Q12: What is commercialization?

A: The final step – launching the product with full investment in production, marketing, and distribution.

Q13: What is the product life cycle (PLC)?

A: The course of a product’s sales and profits over its lifetime, through five stages.

Q14: What are the 5 stages of the PLC?

A:

1. Product development – no sales, high costs

2. Introduction – slow sales, heavy promotion, no profit

3. Growth – rising sales/profit, market acceptance

4. Maturity – sales peak, competition increases

5. Decline – sales drop; decision to maintain, harvest, or drop

Q15: What are style, fashion, and fad in product cycles?

A:

• Style: Basic, long-term expression (e.g., formalwear)

• Fashion: Popular style with a gradual rise and fall

• Fad: Temporary, high-energy spike (e.g., fidget spinners)

Q16: How can companies respond to the maturity stage?

A:

• Modify the market

• Modify the product

• Modify the marketing mix

Q17: What is product stewardship?

A: Designing and managing products to minimize environmental impact and ensure safety throughout the product’s lifecycle.

Q18: What are social and legal responsibilities in product development?

A: Ensuring product safety, honest labeling, transparency, and compliance with environmental and health regulations.

Q19: What challenges do companies face in international product marketing?

A:

• Balancing standardization vs. adaptation

• Meeting local needs and cultural preferences

• Navigating regulations and infrastructure differences

Q20: What is standardization vs. adaptation?

A:

• Standardization: Offering the same product globally (efficiency)

• Adaptation: Customizing products to fit local markets (relevance)