Assignment 4 5 Marketing

Assignment 4
Usama
Question 1: Explain how companies find and develop new product ideas
Developing new ideas, basically, is an element of creativity. The inspiration, however, for
product development, can be derived from a number of factors. Existing products can be
studied, improved, shaped up and presented as new products. Hiring creative minds is
another way to go, in order to develop a product from scratch. Extensive research and
experimentation can give birth to new inventions and pair with an idea, a product for the
market can be developed. Market research can also prove helpful as it can narrow down the
desires of buyers, and a product can be developed to fulfil that particular desire. Market
gaps can be fulfilled by doing so.
Question 2: List and define the steps in the new product development process and the
major considerations in managing this process.
The product development process basically defines a way to bring a concept into existence,
and make it ready to be available in the market. A need is to be identified first, and a
solution is then conceptualized, which consists of designing a product, covering its
experience, functionality and accessibility and of course, profitability for the company. Then
the developed product itself is tested, which includes the market testing as well, reviewing
their response or initial impressions. A team is usually dedicated to each task. Then it is
important to make adjustments in the product, if needed, and then market the product in
such a way so that people understand that this product alone will satisfy their needs.
Question 3: Describe the stages of the product life cycle and how marketing strategies
change during a product’s life cycle
Generally, there are four stages in a product life cycle. Firstly the introduction stage, which
basically includes heavy marketing from developers in order to make consumers aware of
their product. If successfully done, the product enters its growth stage, where the demand
for the product increases. This stage is very critical for developers as there are chances of
expansion, and at the same time, if, let’s say, the quality of the product is compromised, for
the sake of profits, the demand can shrink instantaneously. After the growth stage, comes
the maturity stage, which can be the most profitable stage for the company, as there is no
need for marketing, and costs of production usually decrease as well. Eventually comes the
decline stage, mostly caused by macro factors, such as inflation or competitor’s emulation,
and it is wise for companies to switch their investments and divert their future plans of
expenditure.
Question 4: Why do so many new products fail?
Not every product launch is successful, and there are several reasons for it. The primary
ones are, failure to understand the market, meaning misunderstanding the needs and wants
of the consumers or trying to fix a non-existent problem. Companies can be blinded by their
own views and are unable to look beyond it, therefore blind as far as the market is
concerned. Another reason is poor targeting, whether by using the wrong advertising
strategy or simply by targeting the wrong market. Researching consumers is important as
well, meaning identifying their need and their capability to fulfil their personal needs.
Overpricing often kills good products, hence investments are wasted for nothing.
Mismanagement and weak internal capabilities of a company can also cause a good product
to fail. Getting the market entry timing wrong or simply prolonged development can cause a
product to fail as by then the needs of the market are changed, or their attention diverted.
Question 5 BOSE Case Study

Q1: Based on concepts discussed in this chapter, describe the factors that have
contributed to Bose’s new product success.
Bose’s product success is primarily dependent on research carried out due to the obsession
of the owner Amar Bose, who was basically a scientist and generated ideas and turned them
into products. This can be described as a new product development process, however not
for the mass, but for specific customers. When the company faced criticism initially on their
product launch, rather than modifying their 901 speakers, they advertised in such a way so
that they can find the right customer.
Q2: Is Bose’s product development process customer-centred? Explain
Bose’s products are primarily research centred, and of course, their products target
customers in the market, however, it’s a niche market. Bose via research from scratch,
tackle existing customer needs. Their products eventually ‘’speak for themselves’’ as they
are, basically, superior to the ones available in the market. They are for the customers, but
the company lets research and technology decide the best way to create the product, rather
than the number of sales.
Q3: How is Bose unique with respect to product life-cycle management?
Bose product life cycle is not a conventional one as they are considered ‘flop’ in the start
and eventually the product itself find the right customers. As was the case for their 901
speakers, which were not desired for several years. Woofers were preferred, even with
having a lower quality. However, eventually, the market caught on and 901’s are still sold
today.
Q4: With respect to the product life cycle, what challenges does Bose face in managing its
product portfolio?
One concern for the company is that their products take some time to develop, as they are
mostly research-based, and likewise take some time to be identified and grow in the
consumer market. However, that’s how the company prefers to operate. Amar Bose did not
want to go public with the company. They spent a fortune over 3 decades to develop their
suspension system. Similarly, they take time to develop their other products as well.
Therefore, their product portfolio is quite compact and specific, just like their audience.
Q5: Can Bose continue to maintain its innovative culture without Amar Bose?
It is dependent on the executives of the company, as Amar Bose is now deceased. If they are
the continue to operate the company under Amar’s philosophy of research, then it is likely
that the company will keep producing ‘simply better’ products than their rivals, if they find
the right workforce, with a similar mindset, otherwise, they might start to focus on profit,
rather than on innovation.

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