BUKU JAWAPAN PEPERIKSAAN

Examination Answer Booklet

Dengan perkataan B B ONE NINE ONE SIX ONE ONE ZERO ZERO
No. Pelajar In Words
Student Number Dengan Angka BB19161100
In Numbers
Kod dan Nama Kursus BG22303
Course and Code Name
Semester/Sesi 2/2021
Semester/Session
Tarikh 9 JULY 2021

ARAHAN KEPADA CALON:

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Soalan
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No Pelajar: BB19161100
Student Number: BB19161100

QUESTION 1

Product innovation charter

Planning an innovation charter in strategic planning a new product is a written document,

prepared by senior management to map out a company’s new product strategy and to guide
the product team. A comprehensive and detailed PIC gives more direction and focus to the
team and ultimately, better performance of the company’s new products.

a) Four component of product innovation charter in strategic planning of new

products:

1. Background
− The main idea from the situation analysis, special teams such as ground
management to prepare a new PIC.

2. Focus
− Focus on at least one technology dimension and one clear market dimension. They
match and have good potential.

3. Goal-Objective
− What the project or innovation will accomplish, either short-term as objective or
long -term objective as goals. Evaluation measurements.

4. Guidelines
− Any rules of the road, requirements imposed by the situation or by upper
management innovativeness, order of market entry, time /quality/cost,
miscellaneous.

b) Six categories of new products:

1. New -to-the-world Products

− The alternative expression for new -to-the-world product (really new product)
already indicates that this is what most people would define as a new product.
These products are inventions that create a whole market. For example, Polaroid
camera, the Ipod and Ipad and so on.

2. New-to-the-firm
− Products that take a firm into category new to it. The products are not new to the
world but new to the firm. The new product line raises the issue of the imitation
product. For example, P&G’s first shampoo or coffee, Hallmark gift items.

3. Additions to existing Product Lines

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No Pelajar: BB19161100
Student Number: BB19161100

− These are simple line extensions, designed to flesh out the product line offered to
the firm’s current markets. Example, P&G’s tide Liquid detergent.
4. Improvements and Revisions to existing Product
− Current product made better examples liked, P&G’s Ivory soap and Tide power
laundry detergent have been revised numerous times throught their history, and
there are countless other examples.

5. Repositioning
− Considered as new product, as the firm undertakes a new products process.
Respositioning are products that are retargeted for new use application. Example.
Am & Hammer baking soda repositioned as a drain or refrigerator deodorant.

6. Cost Reductions
− Cost reductions complete the six categories of new products. Cost reductions refer
to new products that simply replace existing products in the line, providing the
similar performance but at a lower cost. May be more of a “new product” in terms
of design or production than marketing.

c) Five phases of the new product process:

i. Phase One: Opportunity Identification / Selection

This is the initial stage where businesses seek ideas about new products. Some sources of
new product ideas include business customers, competitors, newspapers, journals, employees
and suppliers. Small businesses may be limited when it comes to technical research -based
idea generation techniques. This stage is very important because laying the foundation for all
the other phases, the ideas generated will drive the entire product development process. for
example, a beauty product entrepreneur makes the appropriate demographic segmentation
choice to market his product somewhere.

ii. Phase Two: Concept Generation

The ideas generated must go through a screening process to screen for ideas that can be
implemented. The business solicits opinions from employees, customers and other businesses
to avoid trying to get ideas that are not feasible. External industry factors that affect small
businesses, such as competition, legislation and technological change, influence enterprise
decision criteria. At the end of the screening process, the company remains with only a few
workable ideas from the large batch generated. For example, collecting all the data from
customer questionnaires and holding meetings with employees to get the best results.

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No Pelajar: BB19161100
Student Number: BB19161100

iii. Phase Three: Concept/ project development

The company conducts research to determine the potential costs, revenues and profits arising
from the product. The business conducts SWOT analysis to identify strengths, opportunities,
weaknesses and threats in the market. Market strategies are designed to identify product
target groups, which facilitates product market segmentation. Market segmentation is
important because it allows companies to identify their ratios. The identified niche influences
most of the marketing decisions.

iv. Fourth Phase: Product Development

Product development requires actual product design and manufacturing. Development began
with the manufacture of prototypes that facilitated market testing. Based on the test results,
the business owner decides whether to make mass production or not.

v. Phase Five: Commercialization and Launch

Encouraging results in the expansion stage precede mass production and commercialization.
Here, businesses launch promotional campaigns for new products. Market research conducted
during the conception stage influences the time and location of product launch. For example,
vivo brand mobile phone product launched its new phone during the chinese festive season
across supermarkets.

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No Pelajar: BB19161100
Student Number: BB19161100

QUESTION 3

a) Three strategic elements of product development:

1. The New Products Process.

This is a procedure that takes the new product idea through concept evaluation,
product development, launch and post-launch. The idea behind the new products
process is that the phases represent activities that are conducted by the new
product team which between the phases are evaluation tasks or decision points.
Which means this process is where the team needs to make decisions whether
the project is good enough to go to the next phase. There are five phases for the
new product process. For example, if the new product did not pjase the phase 1
which is opportunity identification and selecetion, then it cannot go to the next
phase.
The goal of this strategic element is to manage down the risk and uncertaintly
as one passes throughout the phases. Each additional phase means gretaer
financial investments and greater commitment of human resources.

2. The Product Innovation Charter.

This is a strategy for new products that ensures that the team develops products
in the line with firm objectives and marketplace opportunities.
The product innovation charter usually developed by senoir management and
provides guidance to all functional areas involved in innovation. This strategic
elements defines a scope of activity for new product development which helping
the product team to identify what opportunities what they could get whithin the
boundaries and the efforts that they should focus.

3. The Product Portfolio

This ia a way to assess what new products would be the best ones to add to the
existing line, given financial and strategic objectives. This product portfolio is the
analysis that can provide the company of growth prospects, market leadership,
operatinal risk and so on.
The product portfolio consideration helps the company to decide whether a
new product opportunity adds financially and strategically to the current line an
davoids spreading scrace financial and human resources too thin.

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No Pelajar: BB19161100
Student Number: BB19161100

b) Two main sources of ready-made new product concepts:

1. Internal Sources:
i. New Product Employees
Company can get idea through their employees. For example, research and
development team (R&D) is the formal department of any organization to generate
new ideas. R&D department research according to the company’s future plan and
then come up with the new ideas which complete its journey with the full idea of
the product.
Not only from the R&D department, companies also can use all level of
employees from executive to top management as they can be a great source of
ideas, this is because, most of the ideas usually come up from the employees itself.
For example, most companies now use web technology to get the ideas from
their employees. So, in the web, employees can share and express their thoughts
about a new product.
Therefore, the company can give reward or gifts to the idea that they pick up
as it could encourage the eomployees to be more creative and contribute more in
the future.

2. External Sources:
i. Competitors.

Company can analyze ther competitors and can find many things which can be
used for their idea generations. For example, the company can do some research
about their competitor as it can give them the idea about what the company are
missing or which thing that the competitors are missing. From there, the company
can decide what are the things that needed in the new product.

ii. Suppliers.

Suppliers can help with the impormation of the market like a new concept,
technique or materials which can be used for develping new products.

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No Pelajar: BB19161100
Student Number: BB19161100

QUESTION 4

a) The advantages of using test marketing method:

1. Risk reduction.
Test marketing helps the company to create a promotional news which supports
the main release. It reduces tha risk of a full scale launch. For example, when
doing the test marketing, the product did not reach certain amount of sale nor
customer target. Thus, the company still can save their costs in launching the
product.

2. Strategic imporvement.
Test marketing provides that compay with a wat to know the knowleadge of
customer reviews. For example, the company can get the custmer’s feedback after
they using the product. That way, it will help the company to improve whta is less
in the product like the packaging or ingredients before launching the official one.

The disadvantages of using test marketing method:

1. Cost.
Eventhough it just a test marketing, the cost of doing it still expensive. This is
because, companies usually use focus groups to test their product concepts. In
order to use these focus groups, it can cost thousand of ringgits which come small
bussinesses cannot afford and could lead to loss.

2. Time.
Test marketing usually takes 9 to 12 months to get the result. Some even takes
longer than that. This is because, the company must analyse sales and profit
patterns and looking for possible seasonal trends. During this test marketing time,
the competitor may monitor the test product which is not good for the company.

b) Eight guidlines in good brand names selection:

1. Assess the role or purpose of the brand.

If the company wants the brand to help in positioning, then they have to choose
a meaning brand name. For example, the brand is about the company’s offering
and image to occupy a particular place in the mind of the target market. Which
means that the brand have to be different from their competitors adn where or
how the customers could recognize them.

2. Possibility of extension to a line of products.

If the company wants their brand to long last until future, then the brand name
should should limit their existence in the future. For example, the brand name
could not be limited to one place, it needs to be wide range as it can influence the
consumer’s minds.

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No Pelajar: BB19161100
Student Number: BB19161100

3. Possibility of long-term position in market.

A dramatic novelty name usually does not do as well if a long-term position in the
market is sought.

4. Avoid an irritating or insulting name.

The brand name should not irritate or insult any other culture around the world.
This can be a problem especially when entering foreign markets. This is because,
every country have their own culture. So some of the brand name that we think is
good and nice is actually could irrirate or insult the other country. Thus, companies
should do research before choosing their brand name.

5. Be careful of regional differences in language.

Some companies love to use different language for their band as it could help in
differentiate their brand from others. Therefore, they need to be careful and
choose the name wisely as long as the meaning is not offensive to others. For
example, an acceptable name in some Spanish dialects may be offensive to others.

6. Allocate enough time to brand selection.

When electing the brand name, the company should have enough time as it is not
a rush job. Selecting the brand name at the very last minute is not recommended
as it could lead to many problems. For example, when the company choose their
brand time in a rush time, they tend to overlooked many aspects. Thus, this may
cause them to many problems in the future.

7. Do not choose the wrong comfort level.

A procovative and controversial brand name such as Yahoo! Or Bluetooth may be
a great strategy.

8. Other pitfalls.
The company did not identifying the key decision makers. For example, people that
are invloved in the decision did not undestand brand naming. They already stuck
at the beginning to the brand name process. Therefore, the company need to hore
th best patent attorney to get advice, so their brand name can be interesting.

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