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MKTG7505
Product Strategy and Development
| Question | Answer |
|---|---|
| What percentage of new products fail? | 40% |
| What is a product? | A bundle of tangible and intangible attributes that a seller offers to the potential buyer that satisfies the buyer’s needs and wants. |
| What is a service? | Any act, performance or experience that one party can offer to another that is essentially intangible and does not result in the ownership of anything. |
| What are the 5 aspects of a business that can benefit from innovation? | 1.Products 2.Services 3.Processes 4.Marketing 5.Management |
| What are the 6 types of new products? | 1.New to the world 2.New to the firm - take firm into new category 3.Additions to existing product lines - line extensions, flankers 4.Improvements to existing prods 5.Repositionings 6.Cost reductions - provide customer similar performance/lower cost |
| Give 4 examples of unplanned new-to-the-world products. | 1.Microwave oven 2.Penicillin 3.Teflon 4.X-rays |
| What are the 5 phases of the Basic New Product Process. | 1.Opportunity identification/selection 2.Concept generation 3.Concept/project evaluation 4.Development (technical/marketing) 5.Launch |
| What is the market driven (marketing concept) view? | The marketing concept holds that the key to achieving organisational goals is to determine the needs and wants of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors. |
| What is the market driving view? | Grow markets by educating customers and revolutionising value propositions (IKEA) and channel structures (Amazon) |
| What are the 6 key parameters of bottom of the pyramid marketing? | 1.Reduce costs/maintain quality/performance 2.Innovative prods solve BOP probs/adapt across markets 3.Innovative promotion/distribution 4.Microfinance/mobile bank 5.Alliances - local firms/govts, NGOs 6.Create purchase power - education, co-creation |
| List 6 genius thinking strategies. | 1.Look at problems from different perspectives 2.Make thoughts visible (Da Vinci) 3.Make novel combinations 4.Force relationships 5.Think in opposites 6.Open mind to prepare for chance |
| What is the PIC? | Product innovation charter is a document prepared by senior management to provide guidance to SBUs on the role of innovation. |
| What is open innovation? | A process a company employs to externally search for research, innovation, new technologies, products. |
| What are the 4 main sources used to gather problems for problem-based concept generation? | 1.Internal records 2.Internally - Technical/marketing/sales 3.Stakeholders - VOC, retailers, wholesalers, support professionals (doctors, architects, accountants) 4.Published sources - industry/govt reports, scientific literature, social critics |
| What are the 4 types of product failure? | 1.Withdrawal of product from market for any reason 2.Inability of product to realize required market share 3.Inability of product to achieve anticipated PLC due to any reason 4.Ultimate failure of product to achieve profitability |
| In which 3 cases is concept testing difficult? | 1.Prime benefit is a personal sense (aroma, taste, experience) 2.New art/entertainment 3.Concept embodies new technology that users cannot understand |
| What are the 4 product concept formats? | 1.Written statement 2.Pictures/images 3.Model - prototype 4.Virtual - 3D image |
| What are 5 specific purposes for product concept testing? | 1.Identify poor concepts (to eliminate) 2.Identify market potential 3.Diagnostic - understand consumer reactions 4.Estimate purchase intent 5.Identify potential target market |
| What are the components of the ATAR model for sales forecasting? | A - Awareness (heard about new prod w some characteristics that differentiate it) T - Trial (purchase or consumption of prod) A - Availability R - Repeat (second purchase or recommendation to others) |
| What is the product protocol? | A signed agreement between negotiated parties (marketing, technical, operations and others) to describe the attributes of the product and the key deliverables. |
| What are the 4 main purposes of the product protocol? | 1.Product definition - core, actual, augmented 2.Identify key deliverables 3.Integrate functions (marketing, technical, operations etc.) 4.Set boundaries for development/cycle time |
| Describe the contents (7) of the product protocol. | 1.Target market 2.Positioning 3.Prod attibutes 4.Competitive comparison (bench marking) 5.Timing 6.Marketing, financial, production, regulatory, corporate strategy requirements 7.Contigencies |
| What is product architecture? | How the product components are combined into modules (describing functions) and how the modules are interrelated. |
| What is QFD? | Quality Function Deployment |
| What are the 5 types of organisational team structures with increasing projectization? | 1.Functional 2.Function matrix 3.Balanced matrix 4.Project matrix 5.Venture |
| What are the 2 main benefits of a functional team structure? | 1.Clear chain of command 2.Development of expertise |
| What are the 2 main drawbacks of a functional team structure? | 1.Inefficient communication, decision making and issue/problem resolution between functional departments across projects 2.Narrow vision of employees |
| What are the 3 main benefits of a matrix team structure? | 1.Improved communication across project 2.Greater variety and movivation of employees 3.Encourages cross-fertilisation of ideas across departments |
| What are the 3 main drawbacks of a matrix team structure? | 1.Employees may have divided loyaties (may report to 2 line managers) 2.May place employees under high work load 3.Employees may neglect functional responsibilities |
| List the 7 types of participants in the product management process. | 1.Project manager 2.Project champion 3.Strategist 4.Inventor 5.Rationalist 6.Facilitator 7.Sponsor |
| Define new service development. | A new service concept, client interaction, service delivery system or technological concept that leads to new service functions and require new technological, human or organizational capabilities. |
| What are the 6 components of good design? | 1.Emotional appeal - aesthetics 2.Ease manufacture 3.Quality user interface - easy to use 4.Ease maintenance/repair 5.Good use resources - key features/no unnecessary features, materials, recycling 6.Prod differentiation - memorable, fit corporate ID |
| What are the 3 types of PUT? | 1.Alpha testing - in-house 2.Beta testing - customer-based 3.Gamma testing - thorough evaluation (eg pharmaceuticals) |
| What are the 3 types of product testing? | 1.Concept testing 2.Product use testing (PUT) 3.Market testing |
| What are the 5 key aspects of accelerated product development (APD)? | 1.Product Innovation Charter (PIC) 2.Overlapping phases 3.Portfolio management (maximise resources) 4.Focus on quality (save repeated work) 5.Empowered cross-functional team |
| What is cycle time? | Measure of time to market. |
| What are the 4 types of new products in a product porfolio with respect to the expected commercial value (ECV) and probability of technical success (PTS)? | 1.White elephants - low ECV, low PTS 2.Bread & Butter - low ECV, high PTS 3.Oysters - high ECV, low PTS 4.Pearls - high ECV, high PTS |
| What are the 3 inputs required to form the product concept? How many required for classification as product concept? | 1.Form 2.Technology 3.Need/benefit At least 2 |
| What are the 7 considerations for design? | 1.Speed to market 2.Ease of manufacture 3.Differentiation in market 4.To meet customer needs 5.Universal design 6.Build/support corporate identity 7.Environment - disassembly, recycling |
| What are the 2 types of prototypes? | 1.Focussed 2.Comprehensive |
| What are the 3 types of computer-aided technologies for new products? | 1.Computer-aided design (CAD) 2.Computer-aided manufacturing (CAM) 3.Computer-aided engineering (CAE) |
| What are the 5 stages of the innovation adoption curve or technology adoption life cycle? | 1.Innovators (2.5%) 2.Early adopters (13.5%) 3.Early majority (34%) 4.Late majority (34%) 5.Laggards (16%) |
| What are the 5 stages of the innovation adoption curve or technology adoption life cycle described by Moore? | 1.Technology enthusiasts (techies) 2.Visionaries 3.Pragmatists 4.Conservatives 5.Skeptics |
| Describe 4 characteristics of visionaries as customers. | 1.Easy to sell to but hard to please because they are buying a dream 2.Don't need track record for new product 3.See the potential of the technology 4.Usually managers |
| Describe 3 characteristics of pragmatists as customers. | 1.Buy from proven market leader 2.Whole (augmented) product is important 3.Need to see new products as "industry standard" (not "state-of-the-art") |
| What is the most important tactic for marketing high-tech products to the early market (techies/visionaries)? | Emphasise superior technology. |
| Describe 2 characteristics of technological enthusiasts as customers. | 1.Excited by the technology itself 2.Don't need track record for new product |
| Describe the 3 stages for marketing new high-tech products. | Stage 1.Launch to techies and visionaries - emphasise superior technology ENTER CHASM Stage 2.Develop whole (augmented) prod for niche segment - use feedback from techies/visionaries Stage 3.Re-launch to mainstream - target niche/focus on benefits |
| Describe 5 key tactics for marketing to pragmatists. | 1.Attend conferences/trade shows for segment industry 2.Visibility in segment industry magazines 3.Instal prod in segment industry companies 4.Develop segment industry-specific applications 5.Alliances with key suppliers to segment industry |
| What are the 3 service delivery methods? | 1.Customers visit the service site 2.Service providers go to the customers 3.Service occurs remotely - information-based |
| What are the 4 key components of the launch planning decisions framework? | 1.Strategic givens - preset by upper management (PIC) 2.Strategic platform decisions - overall tone/direction (prod portfolio) 3.Strategic action decisions - targeting, positioning, branding 4.Tactical launch decisions - marketing mix |
| What are the 8 types of strategic platform decisions? | 1.Type of demand sought 2.Permanence 3.Aggressiveness 4.Competitive advantage 5.Product line replacement 6.Competitive relationship 7.Scope of market entry 8.Image |
| What are the 3 types of demand sought for new products? | 1.Primary demand - new-to-the-world prods 2.Replacement demand - product improvement (should canabalise old prod) 3.Selective demand - line additions (canabilisation not desirable) |
| What are the 3 options for permanence? | 1.In to stay - no thought of getting out 2.In to stay if goals met (cautions against alliances) 3.Temporary |
| What are the 3 options for aggressiveness? | 1.Aggressive entry - spend big promotional dollars early 2.Cautious entry - uncertainty about prod something (performance/competitive reaction) 3.Balanced entry |
| What are the 3 options for competitive relationship? | 1.Attack a specific competitor 2.Avoid a specific competitor 3.Make no reference to competitors |
| What are the 3 options for scope of market entry? | 1.Roll out slowly - testing market, prod, service capabilities, manufacturing process 2.Roll out moderately - go to full market when volume success assured 3.Roll out rapidly - restricted only by capacity |
| What are the 3 launch cycle stages? | 1.Pre-launch - building capacity/service capability, training sales people, pre-announcements 2.Beachhead - large expenditure to gain momentum 3.Early growth |
| What are the 4 phase of the life cycle of public concern? | 1.Stirring - individuals write letters of complaint 2.Trial support - champion takes on cause 3.Political arena 4.Regulatory adjustment |
| What are the 4 legal bases for product liability? | 1.Negligence - product defective and injurious 2.Breach of warranty 3.Strict liability - productive defective 4.Misrepresentation |
| What is the definition of radical innovation? | Innovation that displaces or obsoletes current products and/or creates totally new product categories. |
| Give 4 examples of radical innovations. | 1.Photocopier (replaced gestetner) 2.PC (replaced typewriter) 3.Communication satellite (new category) 4.Velco (new category) |
| What are the 2 main dangers of relying on a market driven view? | 1.Customers do not always know what they want. 2.Narrow focus can lead to a failure to see emerging markets and competitor's technologies. |
| What is the main danger of relying on a market driving view? | Solutions may not be needed or wanted by consumers - timing is important as market needs to be ready. |
| What are the contents (4) of the PIC? | 1.Background - key ideas from situational analysis 2.Focus - at least 1 technology dimension and 1 market dimension 3.Goals (long-term) and objectives (short-term) - profit, growth, market status 4.Guidelines - innovativeness, timing |
| What are the 3 degrees of innovativeness? | 1.New-to-market 2.Adaptive product 3.Imitation product |
| What are the 4 options for timing to the market? | 1.First - pioneering 2.Quick second (no sig improvement)- decision to entry market before pioneer successful 3.Slower (more meaningful adaption can be made) - safer as pioneer's success known 4.Late - price entry keyed to more efficient manufacturing |
| What are the 2 phases of concept evaluation? | 1.Initial reaction 2.Concept testing |
| Describe 3 characteristics of the Initial Reaction in concept evaluation. | 1.Decision by 2 or more vice presidents 2.Must be consistent with PIC 3.Intuitive judgement based on experience and high level criteria (market worth, firm worth, competitive insulation) |
| What are the 3 factors considered for the Initial Reaction? | 1.Market worth - value of new product to target market 2.Firm worth - extent that new product enhances firm's competencies 3.Competitive insulation - extent competitive advantage can be maintained against competitive retaliation |
Created by:
craig.muldoon
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