Innovation and Product Development

Key Takeaways

• A product is something that can be marketed to customers because it provides them with a benefit and satisfies a need. Products can be goods or services or a combination of both.
• A "new-to-the-company product" is a good or a service that is new to the company but has been sold by a competitor in the past – for example, Peeps marshmallow Easter decorating kits.
• An "improvement in an existing product" is an enhancement of a product already on the market – for example, a change of ingredients and packaging for Mike & Ike's.
• An "extension to an existing product line" is a new product developed as a variation of an already existing product – for example, Peeps chocolate eggs.
• A "new-to-the-market product" is a good or a service that has not been available to consumers or manufacturers in the past – for example, the PowerSki Jetboard.
• Four characteristics of the entrepreneurial start-up are:

1. It's characterized by innovative products and/or practices.
2. Its goals include profitability and growth.
3. It focuses on new opportunities.
4. Its owners are willing to take risks.

• Entrepreneurship is about carefully calculated risks, not unnecessary risks. Most entrepreneurial decision making can be improved with input from one or both of two sources:

1. Information gathered from research
2. Knowledge gained from personal experience