“They always say time changes things, but you actually have to change them yourself.” Andy Warhol.
In a fast changing world, companies must innovate or face extinction. Yet while new products are essential for survival, they do demand high investments and pose great risks, with uncertainties lingering at all stages of development and launch of products. Numerous studies highlight the high incidence of failure of new initiatives, particularly in FMCG where failure rates quoted by sources vary from 75% to as high as 95%. In business markets too, high risks prevail — it is estimated that roughly one in three business-to-business (B2B) products fail.
As such marketers are confronted by two opposing risks associated with product development: investment risk and opportunity risk. In financial terms, the former is the risk of investment losses should a new product fail, and the latter is the risk of losing the opportunity of revenue and profit that a product might have generated, had it not been shelved. Innovative firms tend to focus on opportunity risk while some other firms tend to focus on investment risk. Irrespective of their orientation, to mitigate these risks, marketers need to be data and research driven.
This section covers a wide range of topics on new product development (NPD) including innovation, ideation, knowledge immersion, consumer immersion, generation of insights, generation of ideas, concept development, product development and product launch.
It imparts an understanding of how new products are conceived, and of the tools, techniques and processes to filter and refine product concepts.
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