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Flashcards

Product Strategy Final Exam

Chloe Jonas English 69 cards

Cards in this deck (69)

  1. 1How does an "entrepreneurial mindset" come into play during the NPD process with major organizations?-both must use persuasion & diplomacy to make things happen
    -both need clarity of the consumer need (know the profile, needs, emotions, and purchase drivers of their consumers)
  2. 2Upstream vs DownstreamUpstream-deal with the strategies of product road maps and NPD efforts
    Downstream-on-going life cycle management
  3. 35 Key Elements of Strategy1. Arenas-Where will we be active?
    2. Differentiators-What unique value do we add?
    3. Vehicles-what internal and external resources will we use to get there
    4. Staging and Pacing
    5. Economic Logic
  4. 4What is strategy?centrally integrated, externally-oriented concept of how we will achieve our objectives
    *incorporating entire business functions
    *whats going on outside of company
  5. 5Reactive approach to NPDdeveloping products to deal with competitive and market pressures as they occur
    1. Defensive
    2. Imitative
    3. Second but better
    4. Responsive
  6. 6Proactive approach to NPDdeveloping products by explicitly allocating resources to preempt undesirable future events and to achieve goals
    1. R&D
    2. Marketing
    3. Entrepreneurial
    4. Acquisition
    5. Alliances
  7. 7Urban & Hauser Growth Opportunities Matrix1. Existing Markets, Existing Products=Market Penetration
    2. New Markets, Existing Products=Market Development
    3. Existing Markets, New Products=Product Development
    4. New Markets, New Products=Diversification
  8. 8Product Portfolioa brand's mix of existing and in-process product innovation
    -what is selling
    -what is in development
    -"what is happening today and tomorrow"
  9. 9Goal when managing product portfolio?BALANCE risk through DIVERSIFICATION, drive LONG TERM PROFITABILITY
  10. 104 R'S of existing products when reviewing a portfolio?1. reinforce-Maintain
    2. renew and revitalize-Invest
    3. relaunch - Revitalize
    4. retire failing products-Kill and move on
  11. 11Pareto Analysis80/20 Rule
  12. 12What is innovation?new match between a need and a solution-leading to the creation of a viable new offering
  13. 13Why innovate?1. Grow
    2. Meet Shareholder expectations
    3. Consumer Need
    4. Competitive Threat
    5. Scarce Supply
    6. Market Shifts
  14. 14New Types of Product Innovation -Disruptive vs Reverse-Disruptive-not a breakthrough, transforms expensive to affordable
    -Reverse-1st launched or discovered in the developing world before spreading to industrialized
  15. 157 Reasons New Products Fail1.Undifferentiated, no competitive advantage
    2. Weak front end due diligence
    3. lack of consumer insights
    4. project scope creep
    5. dysfunctional product teams
    6. no focus
    7. lack of competencies, skills and knowledge
  16. 16Failure Rate55%-65%
    7 NPIs->4 Enter Development->1 Succeeds
    *fail fast, fail forward*
  17. 177 Critical Success Drivers1. Unique superior product
    2. building the voice of the customer
    3. due diligence
    4. getting sharp & early product & project definition
    5. spiral development-build, test, get feedback, revise
    6. Well conceived properly executed launch
    7. speed!
  18. 1810 Types of Innovation1. Configuration
    -profit model
    -network
    -structure
    -process
    2. Product
    -product performance
    -product system
    -Service
    3. Experience
    -Service
    -Channel
    -Brand
    -Customer Engagement
  19. 19Real, Win, Worth it ModelReal-is the market real? is product real?
    Win-can the product be competitive?
    worth it-will the product be profitable at an acceptable risk?
  20. 20Business Ideas External and InternalExternal
    1.lead, extreme users, issue experts
    2.open innovation
    3.innovation tournaments
    Internal
    1.Internal Audit
    2.Repositioning
    3.Cross Functional Brainstorming
    4.Innovation tournaments
  21. 21Keys for Giving Feedback-Ask for permission
    -Immediacy
    -Short
    -About behavior, not Person
    -Specific examples
    Two Approaches:
    -plus-minus: +,-,+
    -Situation, Action, Result, coach
  22. 22Keys for receiving feedback-Listen! Take notes.
    -ask clarifying questions
    -avoid defensiveness
    -acknowledge
    -thank
    -ask for more coaching
  23. 23New Product ConceptCLEAR, CONCISE statement that will EFFECTIVELY communicate an idea to consumers
  24. 24How do we use new product concepts?-prioritize ideas in "pipeline" through testing
    -refine concepts
    -forecast sales for new products
    -communicate optimization
  25. 25Parts of traditional product concept (6)-target market
    -consumer need
    -insight statement
    -benefit
    -description
    -reason to belive
  26. 26Insight statement... what is it?translating our consumer need, into a statement in the consumers own voice that describes how this consumer need is articulated
  27. 27Types of Reasons to Believe (4)1. Puffery
    2. Comparative
    3. Performance Promise
    4. Product Features
  28. 28Characteristics of strong product names-easy to say, remember
    -unambiguously spell-able
    -evocative of the thing it names
    -relays benefits of product
    -legally and practically available
    -laden w/ positive associations
  29. 29Various types used to evaluate concepts (3)Qualitative
    Simulation
    Quanitative
  30. 30Methods used to evaluate concepts Complex->SimpleComplex
    -working prototype
    -physical model
    -interactive multimedia/video
    -Simulation or Video
    -Photos/Sketches
    -Narrative Description
    Simple
  31. 31Spiral/agilecontinuous concept evals based on consumer feedback through NPD process
  32. 32market research is less appropriate when.... (3 reasons)1. discontinuous or "breakthrough" innovations
    2. Technology Intensive Products
    3. Require Rapid Decision Making
  33. 33Van Westendorp method of pricing1. what price would you expect to pay?
    2. what price would be too high that you are no longer willing to pay?
    3. what price would be so low you would question quality?
  34. 34Price Elasticity1. How likely purchase at $9.99?
    2. How likely to purchase at $5.99?
    3. How likely to purchase at $3.99?
  35. 35Pricing options from "toolkit"1. one size fits all
    2. incentive pricing
    3. ownership variations
    4. consumption pricing
    5. dynamic pricing
    6. product line variables
  36. 368 ways to meet market goals and deal with competitive pricing1. geographical pricing
    2. channel pricing
    3. Customer-Segment pricing
    4. Time Pricing
    5. Loss Leader pricing
    6. special even pricing
    7. special event pricing
    8. Psychological discounting
  37. 378 factors that affect forecasting accuracy1. weather
    2. crisis
    3. consumer receptiveness of product
    4. product performance
    5. competitive reaction
    6. Regulation
    7. marketing communication effectiveness
    8. wavering retailer support
  38. 384 ways to enhance accuracy1. survey consumers
    2. "in-market" tests
    3. retailer pre-sell meetings
    4. monitor external variables
  39. 39Top Down Forecasting-sales are projected from drilling down from a total market view, using key assumptions
    -Assumption Based
    -ATAR method
    -Jury of executive opinion
    -Scenario Planning
  40. 40Bottom Up Forecasting-sales are projected by building "up", aggregative individual SKU sales projections
    -Looks like analysis?
  41. 41ATAR Method-Awareness
    -Trial
    -Availability
    -Repeat
  42. 425 Selling Costs1. selling fees
    2. discounts-payment terms
    3. Purchasing competitor products to buy back the space
    4. Returns: manufacturer pays for the returns and defective product
    5. Co-op funding: retail specific advertising
  43. 43Price Leakagecan come from a variety of discounts and incentive provided to customers
  44. 44Revenue=retail price * units sold
  45. 45Retailer Margin Markup %=retailer profit / $
  46. 46Invoice Sales=revenue-retailer margin
  47. 47"gross to net" or "price pocket waterfall" =revenue-retailer margin-selling costs
  48. 48Gross Margin %=Gross Profit / Revenue
  49. 49Net Income % =Net income / revenue
  50. 50ROI= (ROI is a measure of the efficiency of the company's investment in a particular project)(Gross Margin-Cost of Investment) / Cost of Investment
  51. 51Cost of Investmentany cost directly tied to developing your product ex. R&D, Advertising, Promotional Costs
  52. 52Payback Analysishow quickly your investment generates income to cover the costs of creating the product
  53. 53Payback in # of years=Cost of Investment/ $ gross Margin
  54. 54Design Patent vs. Utility PatentDesign- ex. color and shape
    Utility- ex. mechanism and functionality of the product
  55. 55US patent and trademark office 3 question litmus test1. novel unique-from other products
    2. non-obvious-others cannot already be doing this to their product
    3. Useful-does it benefit?
  56. 56Benefits and Drawbacks of PatentsBenefits: protect ideas, less competition, promotes innovation
    Drawbacks: only 20 years of protection, only good in one country, costly
  57. 57Scope creep-uncontrolled changes in a projects scope, such as additional function, feature enhancements, more expensive components, or modification to the original business case
  58. 58Design for Environment-designing a product to specifically minimize its environmental impact
  59. 59Cradle to Gravehelps identify the potential environmental impact through the product life cycle
  60. 606 Types of Greenwashing-Hidden trade off: only some aspects are sustainable
    -Vagueness: chemical free, natural
    -irrelevance: truthful but not helpful
    -Fibbing: making claims that are false
    -No Proof
    -Lesser of 2 evils
  61. 61Alpha vs Beta TestingAlpha: internal, work out "bugs"
    Beta: external, fix key issues with performance and design
  62. 624 types of product tests1. Monadic: testing a single product
    2. Sequential Monadic: back to back monadic tests with same respondant
    3. Paired Comparison: test product interspersed with two competitive products
    4. Triangular comparison: test product interspersed with three competitive products
  63. 63Top 2 box formula% definitely would buy + % probably would buy
  64. 64Frequency per concept=(Annual Usage Quantity 1 * Number of Respondents 1 + Annual Usage Quantity 2 * Number of Respondents 2 + Annual Usage Quantity 3 * Number of Respondents 3) / Total Number of Respondents
  65. 65Profit Potential Per Consumer =Frequency * Profit Per Consumer
  66. 66Total Profit Per Concept =Profit Potential Per Consumer * Total # of Consumers in Segment
  67. 67Breakeven Units =Fixed Costs / (Price – Variable Cost Per Unit)
  68. 68Unit Sales Forecast =Unit Sales for Scenario A * Probability % for Scenario A + Unit Sales for Scenario B * Probability % for Scenario B + Unit Sales for Scenario C * Probability % for Scenario C
  69. 697 Consumer touchpoints1. need for identification
    2. search for information
    3. brand awareness
    4. consideration and trial
    5. shopping and purchase
    6. usage
    7. loyalty

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Flashcards on Product Strategy Final Exam, created by Chloe Jonas on 14/04/2015.
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Chloe Jonas
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