Operation
management
Causes of New Product Failures:
• Overestimation of Market Size
• Product Design Problems
• Product Incorrectly Positioned, Priced or Advertised
• Costs of Product Development
• Competitive Actions
• To create successful new products, the company must:
– understand it’s customers, markets and
competitors
– develop products that deliver superior value to
customers.
New Product Development Process:
1. Idea Generation and Screening
2. Concept Development and Testing
3. Marketing Strategy
4. Business Analysis
5. Product Development
6. Test Marketing
7. Commercialization
New Product Development Process:
Step 1. Idea Generation Systematic Search for New Product
Ideas
management
Causes of New Product Failures:
• Overestimation of Market Size
• Product Design Problems
• Product Incorrectly Positioned, Priced or Advertised
• Costs of Product Development
• Competitive Actions
• To create successful new products, the company must:
– understand it’s customers, markets and
competitors
– develop products that deliver superior value to
customers.
New Product Development Process:
1. Idea Generation and Screening
2. Concept Development and Testing
3. Marketing Strategy
4. Business Analysis
5. Product Development
6. Test Marketing
7. Commercialization
New Product Development Process:
Step 1. Idea Generation Systematic Search for New Product
Ideas
