Developing New Products and Services
Last revised October 17, 2007

Chapter Learning Objectives

1.

Understand the difference between goods and services

2.

Learn how products are classified

3.

Explain the significance of "newness" in new products and services

4.

Outline the new product development process

I. What is a product?

A. Elements: idea, service, and good

B. What are we really buying?

 

II. Differences between services and goods- The four I's of Services

 

A. Intangibility

B. Inseparability

C. Inventory

D. Inconsistency

III. Product line and product mix

A. Product line

 

B. Product Mix

 

IV. Consumer products

 

A. Convenience

 

B. Shopping

 

C. Specialty

D. Unsought

E. Limitations of the Consumer Products Classification System

 

V. Developing new products

A. What is a new product?

 

B. Types of Product Innovations

1. Continuous innovation

2. Dynamically continuous innovation

3. Discontinuous innovation

C. New Product Development Process

1. Identifying new product ideas

 

2. Screening

 

3. Business Analysis

 

4. Development

 

5. Test marketing
a. Advantages of test marketing

 

b. Disadvantages of test marketing

 

c. Alternatives to test marketing

 

6. Commercialization