New-Product Strategy Development Refers to

question 102

Multiple Choice

New-product strategy development refers to

• A) the stage of the new-product process where specific product features and benefits are selected prior creating a new-product prototype.
• B) the stage of the new-product process that defines the strategic role for a new product in terms of the firm's overall objectives.
• C) a formalized protocol for new product development determined by director of marketing.
• D) the process of presenting cross-functional teams with a written new-product concept statement and asking them to respond to it in writing.
• E) the stage of the new-product process that turns the idea on paper into a prototype, which results in a demonstrable, producible product corresponding to its protocol.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds the variable costs associated with producing a product or service.

Production Constraint

Limitations or restrictions in the production process that prevent a company from reaching its full production potential.

Cost-Benefit Trade-Off

The balance between the advantages and disadvantages (in terms of cost) of a decision or project, to evaluate its feasibility or value.

Economic Value

The worth of a good or service as determined by the market or the perceived benefit it provides compared to the cost of its production.