AMIT MISHRA MONIRBA 48TH BATCH

The

creation of products with new characteristics that offer additional benefits to the customers.

 To

add to product portfolio To replace declining product To defeat rivals To maintain/increase market share To maintain competitive advantage Make better use of the organization's resources

 New

to the world high definition TV, ipod, flat screen TV,tabs.

 This

is the strategic stage The firm assesses It current product portfolio Opportunities and threats The firm then determines the type of product which would best fit in their corporate strategy

Idea

Generation Product Screening Concept Testing Business & Financial Analysis Product Development Test Marketing Commercialization

Idea generation is the systematic search for new-product ideas. The purpose of idea generation is to create a large number of ideas.

IBM recently held an Innovation Jam in which it invited customers, employees worldwide to submit ideas for new products and services. The brainstorming session generated some 46,000 ideas in over three days. However, IBM had boiled down these huge number of ideas to only 10 products, businesses and services.

Two major sources are - Internal idea sources - External idea sources Internal idea sources- formal R&D, employees ranging from executives to scientists, engineers, manufacturing staff, sales people and the top management.

 Cisco

has set up an internal wiki called Idea Zone or I-Zone, through which any Cisco employee can propose an idea for a new product or comment on or modify someone elses proposed idea. Since its inception, IZone has generated more than 400 business ideas. So far twelve izones ideas have reached the project stage.

External Idea Sources- Distributors, Suppliers, Competitors, Customers, marketing research firms, University, commercial laboratories, independent inventors. ExamplesDell has set up an interactive web site forum called IdeaStorm that asks consumers for insights on how to improve its product offering. Users post suggestions, the community votes, and the most popular ideas rise to the top. Only two months after the launch, the site had received some 3850 ideas and 2,36,000 votes.

 In

product screening poor, unsuitable or otherwise unattractive ideas are weeded out form further actions

An attractive idea must be developed into a product concept. key terms- product idea, product concept. Product idea- is an idea for a possible product that the company can see itself offering to the market.
Product Concept- is a detailed version of the idea stated in meaningful consumer terms.

Concept development EXAMPLE Suppose a car manufacturer wants to introduce an affordable, mass market hybridpowered car models. A marketer might create the following product concepts for the electric car. Concept1 An affordably priced midsize car designed as a second family car to be used around town. Concept2 A mid-priced sporty compact appealing to young singles and couples.

After being exposed to the concept, consumers then may be asked to react to it by answering questions like -do you understand the concept of a battery powered electric car? - do you believe the claims about the cars performance? - what improvements in the cars features would you suggest? - what would be the reasonable price to be charged for the car?

The company projects cost, profit, return on investment and cash flow if the product is placed on the market. Projections of potential sales at various prices need to be made, as well as detailed cost projections for different volumes of production.

Demand

projections Competition Required investment Profitability

Product development converts a product idea into a physical form and identifies a basic marketing strategy. R&D or engineering develops the product concept into product development Products undergo rigorous tests to make sure that they perform safely and effectively.

 Test

marketing involves placing a product for sale in one or more selected areas and observing its actual performance under the proposed marketing plan.

 Commercialization

involves implementing a total marketing plan and full production

Operating Philosophy Organization Structure The Experience Effect Management Style

Factor 1: A High-Quality New Product Process Taking regular feedback from the customer Killing the loop holes which may affect the developmental process

2: A Clear and WellCommunicated New Product Strategy for the Business There should be a clear goals for the new product
Factor

The role of new product in achieving the goal should be clearly communicated to those who needs to know that

Factor 3: Adequate Resources for New Products Resources like people , money and marketing should be devoted Completely to achieve new innovation in the product.

 We

can say that product development is necessary to establish a competitive edge for the organization. For long term survival the organization should make their product obsolete before their customer do.

Thank you