and almost guarantee that your product will never meet margins.Each company is unique and will determine what is an acceptable breakeven based on time, NPV, costs, and price.7 What are methods to anticipate customer demand and pricing?Customer focus groups.Brand and reputation of companyNote that brand recognition can offer the perception of quality, thereby allowing a higher selling price.Evaluating market acceptance based on similar products from competitors.Studying history of previously released products by your company. This may provide insight into pricing and market acceptance.
8 Projects should always exist to support the corporation’s strategy. Why?The company develops a strategy, or long-term plan, to remain profitable. The corporation issues new products that capitalize on its strengths. Consequently, all activities: projects, new product development, etc. should support the corporation’s strategy. If a new product is not part of the strategic plan, why should it be funded or supported?
9 Once products have reached the decline stage in the product lifecycle, they become a commodity. Is this true? What is a commodity?In the traditional sense, commodities are defined as base or raw materials. This includes items such as oil, wheat, sugar, gold, etc. These are considered primary commodities. However, secondary commodities include products that are produced using primary commodities, such as gasoline and plastics from oil, cereal and bread from wheat, etc. Commodities, unprocessed, are placed into three categories: agriculture, energy, and metals.To a lesser degree, products once they reach their maximum potential may be called a commodity, but this is not in the strict definition. This basically means that a product in “commodity” status is simply not able to command a high price and must compete with many other producers.
10 All costs in a product’s development should be recovered in the first year of a product’s sale in the marketplace. Is this a good strategy? Why or why not?This is an unrealistic expectation. The goal, of course, is to recover all costs and meet the breakeven point as quickly as possible. For more sophisticated products – e.g., newly developed cars (Tesla, for example), sophisticated electronics, and specialized applications (medical equipment) – the breakeven point will be longer. It is up to each company to determine an appropriate time frame to recover costs and become profitable.It is safe to assume that most companies will not expect cost recovery in the first year.
References
1 1 Innolytics.AG https://innolytics-innovation.com/what-is-innovation.
2 2 Fortune 500, Full List 1980, https://archive.fortune.com/magazines/fortune//fortune500_archive/full/1980.
3 3 Fortune 500, Full List 2020, https://fortune.com/fortune500/2020/search.
4 4 Ty Haqqi, Yahoo Finance, 3 August 2020, https://finance.yahoo.com/news/10-most-profitable-companies-america-215951022.html.
5 5 Photosecrets.com, viewed 20 August 2020; https://www.photosecrets.com/the-rise-and-fall-of-kodak.
6 6 Yahoo Finance, viewed 20 August 2021, https://finance.yahoo.com/quote/KODK?p=KODK.
7 7 Fullbay, Making Sense of Truck Classification, viewed 3 August 2021, https://www.fullbay.com/blog/truck-classification.
Bibliography
1 Aaker, D. (1998). Strategic Marketing Management, 5th e. John Wiley and Sons.
2 Belz, A. (2011). Product Development. McGraw-Hill.
3 Cooper, R. (2011). Winning at New Products. New York: Basic Books.
4 Grewal, D. and Levy, M. (2018). Marketing, 6th e. New York, NY: McGraw-Hill Education.
5 Hubspot Blog post. https://blog.hubspot.com/marketing/product-life-cycle. (viewed 10 August 2021).
6 Norman, D. (2013). The Design of Everyday Things. New York: Basic Books.
7 Patel, N. https://neilpatel.com/blog/product-life-cycle (viewed 15 August 2021).
8 Patterson, G. (2012). Million Dollar Blind Spots. Issaquah, WA: AudioInk Publishing.
Конец ознакомительного фрагмента.
Текст предоставлен ООО «ЛитРес».
Прочитайте эту книгу целиком, купив полную легальную версию на ЛитРес.
Безопасно оплатить книгу можно банковской картой Visa, MasterCard, Maestro, со счета мобильного телефона, с платежного терминала, в салоне МТС или Связной, через PayPal, WebMoney, Яндекс.Деньги, QIWI Кошелек, бонусными картами или другим удобным Вам способом.
