Chapter 13 new product development
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Transcript of Chapter 13 new product development
![Page 1: Chapter 13 new product development](https://reader033.fdocuments.in/reader033/viewer/2022061221/54bfc9354a79595c748b462f/html5/thumbnails/1.jpg)
NEW PRODUCT DEVELOPMENT
CHAPTER 13
ENTREPRENEURSHIP
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Entrepreneurship
Chapter Objectives
• To understand the importance of having a NPD process
• To list the types of new products• To study the various stages of the NPD process• To understand the adoption of new products• To tabulate the best practices in NPD• To look at various ways of involving customers in
the NPD process• To list various barriers to NPD• To discuss the common mistakes in NPD
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Types of New Products
• New-to-the-world products
• New product lines
• Additions to a product line
• Improvements and revisions of existing products
• Repositioning
• Cost reduction
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Failure Rate of New Products
“Debugging” Stage
Expected Product Life
“Wearout” Stage
Time
Num
ber
of
failu
re
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The NPD Process
• Opportunity identification
• Concept generation
• Concept evaluation
• Technical Development
• Launch
• Life Cycle Management
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Product Testing
• Alpha testing
• Beta testing
• Gamma testing
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The Adoption Process
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
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Adopter Groups
According to Rogers, the adopter groups are:
1. Innovators
2. Early adopters
3. Early majority
4. Late majority
5. Laggards
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Entrepreneurship
21/2%Innovators
131/2%Early adopters
34%Early majority
34%Late majority
16%Laggards
Time of Adoption of Innovation
Adopter Categories
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Adoption
These five product characteristics influence product adoption:
• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability
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• Communicate with the customer
• Tap employees for ideas
• New product team
• Budgeting
• Letting go
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Involving the Customer
• Lead user method
• Mapping the consumption chain
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Entrepreneurship
Barriers to NPD
• Shortage of funds
• Limited scope in some product categories
• Lack of time
• Restrictive laws and regulations
• Small markets
• Changing technology
• Changing consumer preferences
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Common Mistakes in NPD
• No market research
• Hasty commercialization
• Focus on product
• Lack of communication
• Product availability
• Pricing it high
• Pricing it low