Chapter 5 – Product Development Section 5.1 Marketing & Product Development Section 5.2 Invention or Innovation

New Product Development Businesses must answer two questions before starting up a new product or service Can we produce it? Can we sell it? It is the production and design team, not the marketing department, that asks, “Can we produce it” Marketing department will inform the production and design team about the result of consumer research, and the design will be based on these findings Marketers ask themselves , “Can we sell it”. They develop a pricing strategy, research the competitive market, determine where it will sell and how it will be delivered and promoted. For many businesses, product development is an ongoing major marketing activity. Ie. Bombardier – started with snowmobiles, now ATVs, Rail cars, subway cars, watercraft, and jet airplanes.

Marketing and Production Cooperation Marketing Department Production Department Discovers a market for high-security jet Asks production department to find a lighter material with same properties Calculates and determines they will need to increase the price by $100,000 to cover increased costs of plane Marketers research the market and determine consumers are willing to pay additional for this feature The armour to make the plane secure is too heavy for a small jet Production department researches and finds a light strong armour but its expensive

Feasibility Study Feasibility Study Once a company finishes its preliminary research and wants to pursue the product development process, they must complete a feasibility study. Feasibility Study Determines if any business opportunity is possible, practical, and viable.

5.2 Invention or Innovation Inventions New devices, methods, or processes developed form study and experimentation Innovations A product or service that uses new technology, items, or processes to change existing products, to change the methods used to produce products, or to change the way they are distributed.

Technological Advancements: 1950 - 1990 Polio vaccine Contraceptives Organ transplants Automatic dishwashers Colour tv Stereo recording Video recording The microwave Artificial Intelligence Photocopiers Satellites Fiber optics The computer chip Desktop computers The laser Genetic engineering Fax Word Processing

Activity Name 5 products that have been developed as a result of new technologies Think of future products resulting from technologies of the future