Core Concepts of Marketing

174 CHAPTER 7 INTRODUCINGANDMANAGINGTHEPRODUCT

Organizelor

newproduct

development

Productobjectives

Targetmarket

Screenideas

I

Go/nogo------1.~

...,,(---- Nogo/go

--------Prototype--------

Go/nogo----i.~

f

Manufacturing

R&D

...,,(----Nogo/go

I

Commercialization

FIGURE7.5 Thenewproductdevelopmentprocess

Go/nogo----i.~

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3. Salesperson:companysalespeopleandrepresentatives canbea most helpfulsource
   ofideas, sincetheynotonlyknow thecustomerbest,buttheyalso knowthecom-
   petitionandtherelativestrengthsandweaknessesofexistingproducts.


4. Topmanagement:thegoodtopexecutiveknowsthecompany's needsand resources,
   andis akeenobserveroftechnologicaltrends an d0;competitiveactivity.
   Externalsourcesofnewproductideasarealmosttoonumeroustomention.
   Afewofthemoreusefulare:


5. Secondarysourcesofinformation:th ere arepublishedlistsofnewproducts, avail-
   able licenses, and ideasfor newproductventures.


6. Competitors:goodinferencesabout competitiveproduct development canbe made
   onthebasisofindirectevidencegained fromsalespeopleandfromotherex ter-
   nalsources, includingsuppliers,resellers, andcustomers.