Ch.11 –Developing and managing Products

In MKTG 5 “Developing and Managing Products.” the new product development that Apple created is iPhone5, which comes into the category of “improvements or revisions of existing products”. Apple did improvements to iPhone 4 and created the new product as iPhone5. The other product they improved is iPad, which can also come in to the category of “improvements or revisions of existing products” and also “additions to existing product line”.

In the new product development process, Apple generated its idea mainly to compete with its reveal competitors and also to capture the market share. Generally it was very successful at gaining the market share, and undercutting its competitors LG and Motorola.

Another critical part of development of new product is R&D. It serves as a strengthen factor to the new product development, Apple’s R&D plays a huge role in making iPhone 5 enormously successful. According to ycharts.com R&D Expense Quarterly, for Sept. 30, 2012 was 906 M; 30M higher than previous quarter June 30, 2012. Luckily for Apple the spread of new products comes to the “Innovators” which basically means that consumer are eager to try new product, all most as an obsession. This is mainly due to the consumer loyalty and also experience from the previous version of iPhone.  MKTG 5 also discuses product life cycle, for Apple it is currently at maturity stage with the demise of Steve Jobs, and the second reason can be the innovations such as iPhone5.

MKTG 5 discuses product characteristics and the rate of adoption, Apple comes into the category of compatibility. Compatibility is the degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs.