...The New-Product Development Process Because introducing new products on a consistent basis is important to the future success of many organizations, marketers in charge of product decisions often follow set procedures for bringing products to market To create successful new products, a company must understand its consumers, markets, and competitors and develop products that deliver superior value to customers. Figure 1: major stages in new-product development Idea generation Idea screening Marketing strategy developmentt Concept Development and testing Commercialization Test marketing Product Development Business analysis 1. Idea Generation New- product development starts with the idea generation- the systematic search for new product ideas. Because introducing new products on a consistent basis is important to the future success of many organizations, marketers in charge of product decisions often follow set procedures for bringing products to market. The major sources of new product idea include internal resource and external resource such as customers, competitors, distributors and the supplier. Internal idea sources Using internal resource, the company can find the ideas through formal research and development. It can pick the brains of its executive’s specialists, engineers, manufacturing staff, and sales people. Some companies have developed successful “entrepreneurial” programs that encourage employees to think up and developed product idea. ...
Words: 2173 - Pages: 9
...with significant environmental benefits (Henderson, Conkling and Roberts, July 2007), has birthed a growth industry that has significant profit potential. The below pages analyze the impact of a simulated 18 year product pricing strategy, in combination with new market entrants, on Sun Power Company’s performance. Sun’s product price is lowered from $0.13/ kWh down to $0.08/ kWh over the simulated period and key performance metrics are analyzed and compared to those from SLP 2, which assumed the same pricing strategy but no new competitor entrants. Decision 1 – 2008-2012 Throughout the simulation period the objective of Sun Power is to expand its market share as well as maximize cumulative profit. Profit maximization is aided through cost reduction, thus the company seeks to lower its product unit cost. Figure 1 below, a horizontal analysis of pertinent income statement items, helps to analyze the results of the 5 year period ended in 2012. Sun Power attained improved profitability and cost positioning, although its cost position continues to lag against the cumulative performance of all other industry players over the same period. In addition, no new competitors have entered the market at this point in the simulation, thus the results are identical to the same simulated period for SP Module 2. Fig 1: Income Statement Analysis 2008-2012 | |Sun |Sun ...
Words: 572 - Pages: 3
...ASS4Part1contd 'Storing the firm fixed-effects estimator in the simulated sample HoldbetasimFE(sim) = Application.WorksheetFunction.Index(Application.WorksheetFunction.LinEst(wfroa, wfPE), 1, 1) 'Block bootstrap loop for the FE estimator For j = 1 To b For g = 1 To s r = Int(Rnd * s) + 1 'This picks a random firm identifier For m = 1 To Y 'This loop runs over each year present in a given block i = (g - 1) * Y + m 'This creates an identifier i for observation of block g and period m in the bootstrapped sample Holdroa(i) = wfroa((r - 1) * Y + m) HoldPE(i) = wfPE((r - 1) * Y + m) Next m Next g HoldEst(j) = Application.WorksheetFunction.Index(Application.WorksheetFunction.LinEst(Holdroa, HoldPE), 1, 1) Next j 'Generating the acceptance decision for the FE estimator using block bootstrap in the simulated sample HoldacceptblockFE(sim) = 0 If HoldbetasimFE(sim) > 1.96 * Application.WorksheetFunction.StDev(HoldEst) Then HoldacceptblockFE(sim) = 1 'Classic bootstrap loop for the FE estimator For j = 1 To b For i = 1 To obs r = Int(Rnd() * obs) + 1 Holdroa(i) = roa(r) HoldPE(i) = PE(r) Holdfirm(i) = firm(r) Next i 'Computing Deviations of both Holdroa and HoldPE from their within-firm mean For k = 1 To s 'This step creates temporary variables including...
Words: 11881 - Pages: 48
...|BSc in Hotel Management | |BSc in Tourism Management | |HD in Hotel Management | |HTM 2304 | |MARKETING IN HOSPITALITY AND TOURISM | |Instructor details | | | | | |Ms. Clare Fung, Instructor | |Office: Room TH809 ...
Words: 5200 - Pages: 21
...the relative accuracy of alternative methods for forecasting demand. The findings yield conclusions that differ substantially from current practice. For problems where there are insufficient data, where one must rely on judgment. The key with judgment is to impose structure with methods such as surveys of intentions or expectations, judgmental bootstrapping, structured analogies, and simulated interaction. Avoid methods that lack evidence on efficacy such as intuition, unstructured meetings, and focus groups. Given ample data, use quantitative methods including extrapolation, quantitative analogies, rule-based forecasting, and causal methods. Among causal methods, econometric methods are useful given good theory, and few key variables. Index models are useful for selection problems when there are many variables and much knowledge about the situation. Use structured procedures to incorporate managers’ domain knowledge into forecasts from quantitative methods where the knowledge would otherwise be overlooked, but avoid unstructured revisions. Methods for combining forecasts, including prediction markets and Delphi,...
Words: 12973 - Pages: 52
...Entry/Exit Demand Analysis [ to cite ]: Peter R. Dickson and Alan G. Sawyer (1984) ,"Entry/Exit Demand Analysis", in NA - Advances in Consumer Research Volume 11, eds. Thomas C. Kinnear, Provo, UT : Association for Consumer Research, Pages: 617-622. Advances in Consumer Research Volume 11, 1984 ENTRY/EXIT DEMAND ANALYSIS Peter R. Dickson, The Ohio State University Alan G. Sawyer, The Ohio State University ABSTRACT Past methods of measuring consumer response to the price of a branded good are reviewed and critiqued. A new approach- Entry/Exit Demand Analysis--is described. The method borrows from and improves past methods. Some initial evidence about the technique's test-retest reliability is presented. INTRODUCTION One of the most troublesome problems that confronts management is estimating the responsiveness of demand to changes in price. In the past, experienced managers may have been able to intuitively assess price elasticity based on a history of strategic price increases and decreases. However, over the last decade, many of the street-wise managers may have lost their touch because consumer demand has become much more volatile. Inflation, recession and cultural trends are three factors that have made the tracking of demand curves and price elasticity an even more elusive exercise. Inflation has changed the real purchasing power of the dollar and consequently required consumers to frequently change their reactions to price. Consumers have to adjust to both changes in...
Words: 4759 - Pages: 20
...Jiang 2 Abstract This paper examines to forecast monthly growth rate of import price in China in the presence of 19 potentially relevant predictors, including international trade related variables, broad economic trend measurement, world CPI and world commodity prices and indices from January 1994 to January 2013. Simulated out-of-sample autoregressive model serves as the benchmark model. Individual autoregressive distributed lag (ARDL) model, simple averaging combination forecast, approximate Bayesian model averaging combination forecast, discount MSFE combination forecast and diffusion indices forecast are built to compete the benchmark model. We found that all combination forecasts outperform benchmark forecast but are not statistically significant by using Clark & West test. The ARDL model with the predictor of China export price and China PPI beat the benchmark model significantly. Finally, resorting to Diebold and Mariano test, we found that the predictor of PPI in China performs best in forecasting the growth rate of import price in China. Jiang 3 1. Introduction In the past 20 years, China has undertaken market oriented economic reforms and achieved an average annual growth rate of 9.62%. The expansion of economic activities and growth of household expenditure and further decrease of custom tax level have led to a surge in demand of imported goods. China has become one of the largest importers in the world, which has a total value of...
Words: 7204 - Pages: 29
...MORTGAGE PORTFOLIO ANALYZER: A QUASI-STRUCTURAL MODEL OF MORTGAGE PORTFOLIO LOSSES TECHNICAL DOCUMENT 1 Mar 4, 2011 Roger M. Stein Ashish Das Yufeng Ding Shirish Chinchalkar ABSTRACT This document outlines the underlying research, model characteristics, data, and validation results for Mortgage Portfolio Analyzer, which is an analytic tool to assess credit risk measures, capital levels and stress scenarios for portfolios of residential mortgages. Mortgage Portfolio Analyzer comprises loan-level econometric models for default, prepayment, and severity. These models are integrated through common dependence on local macro-economic factors, which can be either simulated at national, state, and Metropolitan Statistical Area (MSA) levels or input in the form of stress scenarios. This integration produces correlation in behaviors of loans across the portfolio. The simulation incorporates a multi-step Monte Carlo approach and generates monthly P&I cash flows and losses which enables the model to be used for ALM applications or to be combined with an external cash flow waterfall tool and used for simulation of RMBS transactions. Scenario and stress testing is also done in a multiperiod framework. Furthermore, the model accommodates both loan-level and portfolio-level mortgage insurance. The resulting tool can be used for analyzing the credit risk in both portfolios of whole loans and RMBS transactions. © 2011 Moody’s Research Labs. All rights reserved. Many past and present members...
Words: 3373 - Pages: 14
...only unique, but brand fit, price attractive and the likely to be purchased, if it was available. Perform exploratory research In late July, according to the 2003 Health Focus Trend Report, 26% of eaters were carb aware. This meant that Americans were starting incorporating low-carb habits into their diets. The process started with developing the product prototype, followed by employee taste testing, concept screens and ultimately in-restaurant tests in two or more restaurants within the chain. In-restaurant tests also include participants completing a self-administered intercept survey or, for delivery customers, a callback phone survey. Identifying problems In the product prototype phase, Donato’s was running into problems. They were getting in low-carb crusts, and they were awful. Determine if the problem can be solved A solution jump out at the product researchers at Donato’s. People were will to eat the toppings without the crust, which changed the company’s direction. The question now was, could the company market a pizza without crust? With all the emphasis on quality toppings, a no-dough pizza captured our personality. By November 1, Donatos had...
Words: 909 - Pages: 4
...Chapter 5 RESEARCH DESIGN GENERAL CONCEPT MULTIPLE CHOICE QUESTIONS 1. General Mills conducted research on a "new, improved" version of their cereal, TRIX. Consumer taste tests showed the new version was preferred over the old TRIX, but the new version was a failure when it was introduced. It was noted that the research was flawed in that the new version of TRIX was compared with the old TRIX, a choice that consumers in the marketplace would not have. The correct research should have compared the new TRIX with competitor brands. This example was presented in your text to illustrate: a. poor budgeting for research b. how researchers in large firms are in "silos" and are not open to outside suggestions c. how former research studies often determine the design of present studies d. improper research design e. a case where exploratory research should have been undertaken after the causal research Answer: (d) Difficulty: (Moderate) Page: 114 2. Which of the following is true about research design? a. Research design should be the first consideration in a research project. b. Research design decisions should be made after data analysis. c. Research design should be selected during the initial meeting with a client. d. Research design should be selected after thoroughly considering the problem and research objectives. e. Research designs should be made after data collection. Answer: (d) Difficulty:...
Words: 5718 - Pages: 23
...NEW PRODUCT DEVELOPMENT New product development is a process which is designed to develop, test and consider the viability of products which are new to the market in order to ensure the growth or survival of the organization. Some of the important features of new product development are:- * Development of original products. * Product improvement. * Product modification. * Inventing new product through R&D efforts. Therefore a new product development process deals with the design, creation, and marketing of new products. * Stages in new product development :- * Idea generation. * Idea screening. * Concept development and testing. * Market strategy development. * Business Analysis. * Product development. * Market testing. * Commercialization. The stages in managing the development process are defined below:- 1. Idea generation: The new product development process starts with the search of ideas. Some marketing experts believe the greatest opportunities and highest leverage with new products are found by uncovering the best possible set of unmet customer needs or technological innovation. It is a continuous, systematic search for new product opportunities. Ideas for new products can be obtained from SWOT analysis. Not only SWOT analysis, companies R&D department, competitors, employees, salespeople helps the organization to obtain ideas for new product development. 2. Idea screening: After the process of...
Words: 868 - Pages: 4
...11/22/11 McGraw-Hill/Irwin Copyright ©2006 The McGraw-Hill Companies, Inc. All right reserved. Market testing is not test marketing! Test marketing is one of many forms of market testing -- others include simulated test market, informal sale, minimarket, rollout. Test marketing is also a much less common form now due to cost and time commitments and other drawbacks. 1 11/22/11 2 11/22/11 Often used in business-to-business and consumer durables, similar to concept and product use tests. Give full pitch on product, answer questions, discuss pricing, and ask: “If we make this product available as I have described it, would you buy it?” Often conducted by regular salespeople calling on real target customers. Create a false buying situation and observe what the customer does. Follow-up with customer later to assess likely repeat sales. Often used for consumer nondurables. 3 11/22/11 Used for business-to-business products, also consumer products sold directly to end users. Train salespeople, give them the product and the selling materials, and have them make calls (in the field, or at trade shows). Real presentations, and real sales, take place. More secrecy than by any other controlled sale method. The feedback is almost instant. Positioning and image development are easier because more information can be sent and more variations can be tested easily. ...
Words: 936 - Pages: 4
...Letter of Transmittal May03, 2012 The Lecturer Saud Ahmed Department of Finance Jagannath University, Dhaka. Subject: To submit a report on “New-product development on- Natural Anti-insect.” Dear Sir, We are very delighted to submit the term paper on New-Product Development on Natural Anti-insect product as the course material. Our main incentive is to prepare this term paper according to your guidelines in accordance with your instructions. We have tried our best to produce our work as per your structures and hope we believe we have done an adequate job considering our level of experience and expertise and are able to relate the fundamental things with realistic applications. We are extremely grateful for the opportunities that you gave us to express our innovative ability and we earnestly hope that you will like the work that we have done. Furthermore, we stand by to answer all queries regarding our work and pledge that our New Product Development is a unique production culminated by the amalgamation of our varied skills and had work. Sincerely Yours On behalf of the group Mohammad Sakil Azad 1st year, 1st semester Roll: B110203095 Batch-6th (Finance) Acknowledgement All praise to Allah, our creator and sustainer, for giving us the strength to prepare this assignment. Our heart full thanks to our course teacher “Saud Ahmed” for giving us an important topic about the “New Product Development.” and also for giving suggestion as well as guideline,...
Words: 5796 - Pages: 24
...Data Analyzing of the current business processes that have concurrently been in progress at Star plus Manufacturing Inc. Through our Time Spend at Star plus manufacturing Inc., we have conducted the following Business Analytics including but not limited too; Analyzing Qualitative Data, Analytics, Business Intelligence, Test and Learn, Business Processes, Statistics and Customer Dynamics. While Analyzing Qualitative Data; we have conducted Open-ended Questions, accepted written comments on questionnaires in order to generate Single word opinions, Brief Outlooks on company environment. We have also found some finding though daily business observations. During our Analytics practices, we have been able to develop optimal or realistic decision recommendations based on insights derived through the application of statistical models and analysis against existing and/or simulated future data. Business intelligence used a well-established process in guiding organizational change through using Computer-Based Techniques to identify, extract and analyze business data, such as Sales revenue by individual departments and products by each ones associated Costs and Income. Test and Learn methods in order to define the impact that, current strategies are impacting customers and clientele. Business Process in order to construct a representation of your current business processes. Statistic information used to find the Mean or median to calculate data information. Customer Dynamics was used to identify...
Words: 521 - Pages: 3
...Marketing research definition: It is a development interpretation and communication of decision oriented information used in the strategic planning process. Steps for NEW products: 1. Idea generation 2. Screening ideas 3. Business analysis 4. Pro- type development 5. Test marketing 6. Commercialization Idea generation: The PIC should then direct the search for new-product ideas. Idea generation should be systematic rather than haphazard. Otherwise, although the company will find many ideas, most will not be good ones for its type of business. A company typically has to generate many ideas in order to find a few good ones. A recent survey Irproduet managers found that of 100 proposed new product ideas, 39 begin the product development process, 17 survive the development process, 8 actually reach the marketplace and only 1 eventually reaches its business objectives.7 To obtain a flow of new-product ideas, the company can tap many sources. Chief sources of new-product ideas include internal sources, customers, competitors, distributors and suppliers. * Internal Sources * Customers * Competitors * Distributors, Suppliers and Others Screening ideas: The purpose of idea generation is to create a large number of ideas. The purpose of the succeeding stages is to reduce that number to a manageable few which deserve further attention. The first idea-reducing stage is idea screening. The purpose of screening is to spot good ideas...
Words: 1349 - Pages: 6