Product development — common mistakes

In exam questions about launching a new product, evaluate the decision to conduct test marketing. A good answer will weigh the benefits of gaining valuable market data and reducing the risk of a full-scale failure against the drawbacks, such as high costs, delays to a national launch, and giving competitors time to react. The best responses will use context from the case study to justify whether test marketing is appropriate for that specific business or product.

No, they are distinct but complementary functions. R&D is the technical process of inventing and designing the product ('Can we make it?'). Market Research is the commercial process of understanding customer needs and market potential ('Will they buy it?'). Both are essential for successful NPD, and their integration is key.

Not necessarily. While it can refer to radical innovations that create new markets, 'new product' in a business context also includes incremental improvements to existing products (e.g., a new iPhone model), adding new product lines, or introducing an existing product type that is simply new to that particular company.

No. A successful launch is only the 'Introduction' stage of the Product Life Cycle. The business must then effectively manage the product through the subsequent Growth and Maturity stages. This involves adapting the marketing mix, fending off competitors, and potentially using extension strategies to prolong its life. A strong launch is a great start, but it does not guarantee long-term profitability without continued strategic management.