Product Planning and Development

Chapter 8 - Product Planning and Development • Study by PricewaterhouseCoopers o ½ of plausible business ideas come from the customers, competitors, and suppliers o Imaginatik- created a technology based program that creates ideas but can help in deciding if they will work or not. ▪ Electronic suggestion box that allows people to discuss and analyze in the program o Important points: ▪ Ever company needs to develop new products to stay successful ▪ The nature of a product is as extensive as our imaginations ▪ Steps can be taken to stimulate the flow of new-product ideas ▪ Success of products are not guaranteed • Product: is a set of tangible and intangible attributes, which may include packaging, color, price, quality, and brand, plus the sellers services and reputation o Customers don’t always want a product but something that benefits their needs ▪ Ie. Like sand paper no one wants sand paper they want a smooth service o Any change (design, color, size, packaging) creates another product- brings the customer a new set of appeals. • Classifications of Products o Customer products: are intended for personal consumption by households o Business Products: are intended for resale, for use in producing other products, or for providing services to an organization o Convenience good: a tangible product that the consumer feels comfortable purchasing without gathering additional info and then actually buys with a minimum effort ▪ Low unit price, not bulky, not greatly affected by fad and fashion o Shopping good: a tangible product for which a consumer wants to compare quality, price, and perhaps style in several stores before making a purchase ▪ fashionable apparel, furniture, major appliances, and automobiles o Specialty goods: a