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

2. 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.

3. 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

4. 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. 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.

6. 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

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