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BUS 620 WEEK 4 DQ 1 ( New Products )

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Review the process for development of new products. Analyze why most new products fail.
Respond to at least two of your fellow students’ postings.
Response 1
The process for new products must be able to attract customers for sales growth while being
developed and manufactured with an eye on cost for financial margin. First is the
attributes/service that product can provide, how the product is packaged, as well as branding,
services related to the product, warranties, etc.(Mullins, Walker, 2010). Each product has
features and benefits. Consumers focus more on the benefits verses the features. In buying a
new car, there are many options. Having a 10-disc CD changer and Satellite radio is a feature,
that has a cost, yet you may only be looking for a car within a certain price range, that will
provide transportation to and from work, for a long period of time without requiring service.
The process for product developments is based on the benefit or service that product is
intended for. Next comes the product feathers, which could separate its self from the
competitor. Next is the packaging and branding. Warranty comes next and then other services
such as training, upgrades, delivery, etc. Product development involves competition with its
self, through product upgrades and enhancements as well as outside competitors.
Products fail because people do not buy them. The producer failed to understand the
consumer's need, preferences and requirements for development (Mullins, Walker, 2010).
The producer/developer fails to recognize the market place, growth within that market place
and understanding of what the consumer wants and will pay for. Product development, lack
of testing and added costs during the production, packaging, branding and marketing can all
lead up to cost exceeding the value and benefit of the product its self.
Mullins, J. W., & Walker, O. C., Jr. (2010). Marketing Management: A Strategic Decision-
Making Approach. New York, NY: McGraw-Hill/Irwin.
Response 2
“A product can be identified as anything that satisfies a want or need through use,
consumption, or acquisition” (Mullins & Walker, 2010, p. 250). Since products are the
livelihood of most companies, making sure they are up to par is critical to business success. A
stage-gate system is commonly used in the new product development system. “In a stage-gate
system an idea for a new product must pass through a series of gates at each of which its
merit is examined before it is allowed to continue its journey toward market introduction”
(Mullins & Walker, 2010, p.265). The goal is to weed out products that will not market well
before spending too much money. Gate 1 is the idea generation and initial screening
decisions. Gate 2 is the secondary screening wherein managers basically go through the same
process as Gate 1 just to make sure weak ideas are killed. In Gate 3 decisions on the business
case are made. This is the last chance to stop before proceeding with full scale development
of the product (Mullins & Walker, 2010). At Gate 4 the product’s design and features are
settled on. To proceed, a product must pass a test market in Gate 5.

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Review the process for development of new products. Analyze why most new products fail. Respond to at least two of your fellow students’ postings. Response 1 The process for new products must be able to attract customers for sales growth while being developed and manufactured with an eye on cost for financial margin. First is the attributes/service that product can provide, how the product is packaged, as well as branding, services related to the product, warranties, etc.(Mullins, Walker, 2010). Each product has features and benefits. Consumers focus more on the benefits verses the featur ...
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