Notesale: Turn your study into money

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Lecture 9
Product: A material good, an intangible service or both
...
Three levels: augmented product, tangible product and care product
...
Number of years it
took for the following technologies to reach 25% of US households:
-

Automobile
Electricity
Telephone
Microwave
Television
Internet
Cell phone

= 56 years
= 45 years
= 36 years
= 31 years
= 26 years
= 23 years
= 14 years

Invention: The discovery of new ideas and methods
Innovation: An invention is commercialised by bringing it to market
Conditions required for Innovation
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


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

Moderate environmental uncertainty
Cohesive workgroups
Exchange of information
Moderate environmental uncertainty
Cohesive workgroups
Exchange of information

Product Development Process
1
...

3
...

5
...

7
...


New product strategy: clearly defined goals & objectives
Idea generation: brainstorm through internal & external sources
Screening: to reduce the number of workable ideas
Concept testing: to develop an idea into a detailed concept that would describe it to a
consumer and test it among consumers
Business analysis: reviewing the cost and profit estimates to find out if they meet
company objectives
Product development: developing the product through research and design stages
Market testing: trial run of the product where all aspects of the marketing mix are tested
(e
...
simulated market test and test marketing)
Commercialisation: actual introduction of the product into the market commercially

Incremental Innovation: Making minor changes over time to sustain the growth of a
company without making sweeping changes to product lines, services or markets in which
competition currently exists (e
...
dyson hoovers and Becks alcohol-free)
“Television won’t be able to hold on to any market it captures, after the first 6 months
...
”
(Ken Olsen, President and founder of the DEC Corporation, 1977)



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