Chapter 5 – Product Chapter 5 – Product DevelopmentDevelopment

Section 5.1 Marketing & Product DevelopmentSection 5.1 Marketing & Product Development

Section 5.2 Invention or InnovationSection 5.2 Invention or Innovation

New Product DevelopmentNew Product Development

Businesses must answer two questions Businesses must answer two questions before starting up a new product or servicebefore starting up a new product or service

Can we produce it?Can we produce it?

Can we sell it?Can we sell it?

Marketing and Production CooperationMarketing and Production Cooperation

Discovers a market for high-Discovers a market for high-security jetsecurity jet

Asks production department to Asks production department to find a lighter material with same find a lighter material with same propertiesproperties

Calculates and determines they Calculates and determines they will need to increase the price by will need to increase the price by $100,000 to cover increased costs $100,000 to cover increased costs of planeof plane

Marketers research the market Marketers research the market and determine consumers are and determine consumers are willing to pay additional for this willing to pay additional for this featurefeature

The armour to make the plane The armour to make the plane secure is too heavy for a small jetsecure is too heavy for a small jet

Production department researches Production department researches and finds a light strong armour but and finds a light strong armour but its expensiveits expensive

Marketing Department Production Department

Feasibility StudyFeasibility Study

Once a company finishes its preliminary research and Once a company finishes its preliminary research and wants to pursue the product development process, they wants to pursue the product development process, they must complete a feasibility study.must complete a feasibility study.

Feasibility StudyFeasibility Study

Determines if any business opportunity is Determines if any business opportunity is possible, practical, and viable.possible, practical, and viable.

5.2 Invention or Innovation5.2 Invention or Innovation

InventionsInventionsNew devices, methods, or processes New devices, methods, or processes developed form study and experimentationdeveloped form study and experimentation

InnovationsInnovationsA product or service that uses new technology, A product or service that uses new technology, items, or processes to change existing items, or processes to change existing products, to change the methods used to products, to change the methods used to produce products, or to change the way they produce products, or to change the way they are distributed.are distributed.

Technological Advancements: Technological Advancements: 1950 - 19901950 - 1990

Polio vaccinePolio vaccine ContraceptivesContraceptives Organ transplantsOrgan transplants Automatic dishwashersAutomatic dishwashers Colour tvColour tv Stereo recordingStereo recording Video recordingVideo recording The microwaveThe microwave Artificial IntelligenceArtificial Intelligence

PhotocopiersPhotocopiers SatellitesSatellites Fiber opticsFiber optics The computer chipThe computer chip Desktop computersDesktop computers The laserThe laser Genetic engineeringGenetic engineering FaxFax Word ProcessingWord Processing

ActivityActivity

1.1. Name 5 products that have been Name 5 products that have been developed as a result of new developed as a result of new technologiestechnologies

2.2. Think of future products resulting from Think of future products resulting from technologies of the future technologies of the future