Learning Team Delieverable

New Product Development
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New Product Development
What a company needs to consider when developing a new product
The following should be considered: (i) if the new product meets a perceived need. Question to ask is: do customers want the product? The company’s managers need to find out if there is really a perceived need of the product in the marketplace. This can be done by studying the products of the competitors to learn if their products will or can do what the new product does. (ii) Whether the marketplace is currently flooded with similar products which the potential customers are already using. (iii) The cost versus the Return on Investment on this new product. The question to ask is: can this new product really be profitable? (iv) Appropriate personnel involvement to develop the new product effectively. The company should have the right number of tactical and creative development assistance when it attempts to develop a new product. (v) How the new product would be introduced into the market. Some methods to consider include trade shows; television, radio, newspaper, and internet advertising; pre-selling; referrals/networking; as well as marketing campaigns. (vi) Test marketing. This entails limited introduction of the new product in geographical regions selected to represent the intended market. This is aimed at determining the reaction of the prospective customers.
Some new products that have failed include New Coke which was launched in mid 1980s but abandoned after just a few weeks; Samsung Galaxy smartwatch; and see-through Lululemon yoga pants. New products fail due to poor timing, lack of access to the market, no differentiating advantage, the target market is very small, the marketing plan is poor, and the pro...