11. Strategies of the new product due to the search pattern

Due to the pattern search, strategies for determining, evaluation of a new product individual solutions and strategies for determining the set of new product feasible solutions are distinguished. The determination strategies and evaluation of individual solutions is also called new product development by analysis.

This strategy is also used in the methods’ absence of determining the sets of competent solutions to the new product, and if the project team has limited resources. However, the strategy of determining the set of new product feasible solutions is considered more advantageous from the new product development process viewpoint.

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12. Range of new product

The featured product development strategy is based on the introduction of new, improved or modified product. In the case of the criterion range of new product offer perception by the customer and the manufacturer the following strategies are distinguished: modification (improvement) of the product, the introduction of imitation and the introduction of absolute novelty (innovative product).

The strategy of modification is based on changes resulting from the renovation, transformation, or changes related to technology or remodeling of the product. Major decisions concerning the product as the choice of segment, marketing programs, sales solutions remain unchanged. It is important for these changes to be visible through promotional activities. The customer should be informed about the changes and the benefits associated with them. In the markets of industrial goods (in case of this strategy) two varieties are mentioned: technological modification of manufactured product and modernization of the desired.

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13. Diversification

The next criterion that allows distinguishing strategies types of introducing a new product is the criterion of merging three sections: innovation, marketing and technological orientation. These are called strategies for diversification and they are combinations of these variables. There are the following strategies: extension of the products’ line, a new generation of products, marketing products’ distinction, segmental product diversification, horizontal diversification of the product portfolio, conglomerates diversify the portfolio of products and concentric diversification of the product portfolio.

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14. Range of competitive advantage

Competitive advantage can be also the criterion of the NPD strategy. We distinguish the following types:

  • offensive strategy (innovator),
  • defensive strategy (follower),
  • imitating strategy,
  • traditional strategy,
  • niche strategy.

The choice of T. Jones strategy of division determines the following, connected with NPD, actions and allows for a consistent management of such areas as: the methodology, the examination pattern or even the production of goods, financial analysis and the choice of distribution channel.

Deciding on the strategy accelerates the organization and also facilitates the diversification of the subsequent actions. This decision, moreover, may be the starting point for the products designing. When the enterprise determines the strategy for competitive advantage, i.e. selection of the specialized market that requires specific treatment and satisfying the needs, then the designing team will employ varying model than in case of the offensive (innovator) strategy.

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15. Reactive and proactive models

Decisional notes establish the stages of conduct in case of implementing either the reactive or the proactive option of the new product development strategies. Chart shows schemes of reactive and active models.

Scheme of the reactive models

The proactive strategy is mostly chosen due to the company’s marketing strategy.

The “identification of opportunities” is an important factor in this strategy. Opportunity identification should be based on a systematic search of the target domain.

Traditional method of generating ideas and their evaluation is substituted with identification of a few ideas displaying high potential of competitive advantage and their careful examination.

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16. The DMADV

The DMADV is a method of managing the process of either a new project or a new product. This method is used if the product or the project has not existed in the company or if it requires optimizing. This consists of five parts. The abbreviation DMADV was created of the first letters of: define, measure, analyze, design and verify, which are described below.

Define: the project’s aims are described and the information about their scope is presented. The product requires defining the model and its type, indicating development strategies and establishing its functionality. The project, however, demands estimation of the risks, the schedule and guidelines development.

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17. Quality Development

Quality Development is an advanced method of transforming customer requirements for technical characteristics of the product. This method was developed by a Japanese Yoshi Akaoand first used in Mitsubishi in 1971. The starting point in the design of quality by means of QFD method is uncompromising fulfillment of customer demand, so that he or she is satisfied, not just a client or a technologist.

It’s particular power derives from the fact that is a planning tool for use upstream, off-line, to ensure that customers needs are first understood in the customer’s own terms: then deployment into design requirements and subsequently through the manufacturing chain of critical part characteristics and key process requirement, and finally deployed to operational specifications.

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18. The Value Analysis

Methods of the value analysis are used to design and optimize systems (products, processes, infrastructures, services, organizations). They aim at achieving full satisfaction of users at lower costs. Methodology of conduct applied in this analysis involves transition from the examined item to the model of a function.

Their analytical strength results from the fact that they take into account the two logic: functional and descriptions. Functional logic that explains what should be the response of the system to the needs and limitations of users in all situations. Description logic that determines which components of the solution or resources are at stake, to bring the answer to that function. Function expresses the relationship between the product and one or more components of the external environment.

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19. The control market tests

Stage, during which the final decisions are taken and the effect of them is the introduction of a new product on the market, is called commercialization.

One of its constituent activities in addition to choice of product positioning strategy and making decisions concerning marketing programs is to assess the control market tests.

The tests are the last stage of commercialization and decisions after their execution, prepare solutions implemented in stages of introducing to the market.

Control market tests are intended to provide answers if it is worth introducing a designed product to the market. Another task is to get the buyers’ opinions on the usefulness and usability degree. The study includes typical marketing tests treated as controlled experiments carried out on a limited or specially selected part of the market. In carrying them out, all external elements that may affect the answers provided by the examined person ought to be minimized. While designing them it should be exactly established what information the company needs and how the outcome will affect individual choices. The scope of their execution in terms of the entity, time and space ought to be determined in detail.

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20. Benchmarking

According to John W. Priest, it is a systematic process of identifying the best practice in industry, product and manufacturing setting goals based on results of what competitions has achieved or will in the future and identifying the best vendors.

He emphasizes that the essence of benchmarking is the perception of competition by another prism. Companies usually consider competition as a risk which must be avoided or fight it, eradicated. The purpose of benchmarking is to search for solutions, sources of strength that can be used for the needs of your business.

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