10: Product Design and Development
- Page ID
- 3964
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 10.1: What Is a Product?
- This page defines a product as a marketable item meeting customer needs, encompassing goods and services. It identifies four categories of product development: new-to-market, new-to-company, improvements of existing products, and product line extensions, illustrated with examples from Just Born. The text also highlights an entrepreneurial approach to product innovation, emphasizing the significance of calculated risks informed by research and personal experience for successful entrepreneurship.
- 10.2: Where Do Product Ideas Come From?
- This page emphasizes that successful product idea generation should prioritize customer needs over merely deciding what to sell. It highlights the role of entrepreneurs and small businesses in creating innovative products and suggests that companies can source ideas internally or from customer engagement. Additionally, it notes the support offered by consulting firms like Eureka!Ranch in enhancing creativity and maintaining competitiveness in a dynamic market.
- 10.3: Identifying Business Opportunities
- This page discusses how an idea evolves into a business opportunity with commercial potential for profits. However, not every idea succeeds, illustrated by product failures like Bic's disposable underwear. It emphasizes the importance of understanding the four types of utility—time, place, ownership, and form—in evaluating and developing successful product ideas that resonate with consumer preferences.
- 10.4: Understand Your Industry
- This page emphasizes the importance of thorough industry understanding for successful product development. It involves identifying the industry, evaluating sectors, and market segmentation. For example, targeting older joggers would focus on the athletic shoe segment. Key research areas include industry growth, competition, and customer needs, utilizing resources like competitor analysis and industry publications.
- 10.5: Forecasting Demand
- This page outlines the importance of demand forecasting for successful product development and marketing. Businesses should identify customer groups, understand their needs, and assess market interest. Engaging with peers and potential customers, along with analyzing industry data, is crucial for estimating market size and demand. This research aids in financial projections and assessing business feasibility, guiding product development and marketing strategies.
- 10.6: Breakeven Analysis
- This page details breakeven analysis, a method for calculating the sales needed to cover costs and reach zero net income. It explains fixed and variable costs and demonstrates how to find the breakeven point, exemplified by a shoe business needing to sell 8,571 pairs for profitability. Additionally, it presents a scenario for a dog grooming business, encouraging breakeven calculations at different price points to assess viability.
- 10.7: Product Development
- This page highlights the crucial role of product development in addressing consumer needs and driving business success. It stresses the need for collaboration across departments to deliver quality products but notes the challenges involved, such as trade-offs and time constraints, which contribute to a low success rate—12 failures for every success. Nonetheless, companies continue to invest heavily in innovation, reflecting the competitive market landscape.
- 10.8: Protecting Your Idea
- This page outlines the process of obtaining a patent from the U.S. Patent and Trademark Office to protect a product idea, granting exclusive rights for twenty years. It advises documenting the idea and filing a formal application, often with legal help. The invention must be new, non-obvious, and useful. If exporting, further patents may be needed in other countries. The patent process can be lengthy, amid a growing landscape influenced by advancements in high-tech industries.
- 10.9: Cases and Problems
- This page covers business concepts like calculating the breakeven point for a gourmet burger restaurant, the effects of changing prices and costs on profitability, and career opportunities in product design. It also discusses ethical issues related to fast-food marketing and childhood obesity, as well as the implications of product counterfeiting on safety and legality, encouraging readers to consider the ethics of buying counterfeit products.