PRODUCT

DESIGN A

ND

DEVELOPM

ENT

CH

AP

TE

R 1

0

What is a new product?

Bioré

Continuous Innovation

Cannon’s Power Shot S45

Requires a television or personal computer and special software to view pictures

Dynamically Continuous Innovation

Ford’s 1912 Model T Touring Car

Discontinuous Innovation

High Low

Discontinuous

• Automobile

• Television

Dynamically Continuous

• Minivan

• Remote-Controlled TV

Continuous

• Anti-lock brakes

• HD TV

Behavior Change Required

• Idea Generation

New product development process

• Concept Testing• Business Analysis• Marketing Strategy• Development

New product development process

• Idea Generation• Screening

• Phased development: Sequential• Parallel development: Simultaneous

Speeding up new-product development

Black and Decker’s Quantum Tools

• Idea Generation• Screening• Concept Testing• Business Analysis• Marketing Strategy• Development• Test marketing

New product development process

• Projections of success• Buyer behavior• Scenario testing

Advantages of test marketing

• Expensive• Opportunity cost• Results can be misleading• Strategic concerns

Disadvantages of test marketing

• Simulation• Test country product launch

Alternatives to test marketing

• Idea Generation• Screening• Concept Testing• Business Analysis• Marketing Strategy• Development• Test marketing• Commercialization

New product development process