Read the summary and the most important questions on New Products Management | 9780073404806 | C. Merle Crawford; C. Anthony Di Benedetto

• 1 The strategic elements of product development

• 1.1 The importance of new products

• Competitors do most damage when:

  1. There is so little product differentiation that price-cutting takes everyone's margins away
  2. When they have a desirable new item that we don't

• 1.2 Globalization and new product development

• Reasons for increased global R&D are:

  1. Labor costs are less expensive overseas
  2. The increasing globalization

• 1.4 What is a new product, and what leads to success

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• New-to-the-world products

  Are inventions that create a whole new market. (e.g. Ipad, polaroid camera)

• Additions to existing product lines

  These are "flanker" brands, or line extensions, designed to flesh out the product line as offered to the firm's current markets (e.g. Bud light, special K)

• Improvements and revisions to existing products

  Current products made better (e.g. ivory soap).

• 1.5 The strategic elements of product development

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• What are the three strategic elements of product development?

  • New products process
  • Product innovation charter
  • Product portfolio

• Product innovation charter

  Essentially a strategy for new products. It ensures that the new product team develops products that are in line with firm objectives and strategies and that address marketplace opportunities

• Product portfolio management

  Helps the firm assess which new products would be the best additions to the existing product line, given both financial and strategic objectives

• 1.6 The basic new products process

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• What is the goal of new products processes?

  To manage down the amount of risk and uncertainty as one passes from idea generation to launch

• Advantages of stage gate

  • Better planning and scheduling through short-time goals
  • Ensuring the continuous reduction of uncertainty
  • Managing the uncertainty and risk be a step-wise resource allocation