NATIONAL UNIVERSITY OF MODERN LANGUAGES

Department of Management Sciences

MSBA & MBA Final Term Examination January 2014

Paper: New Product Development Total marks :100

Time allowed: 3 hours

Instructions
Write down your roll no on the question paper.
Attach your question paper with the answer sheet before leaving examination hall.
Keep your roll # slips and university ID cards with you during the examination.

Question No. 1. Although the overall purpose of evaluation is to guide

us to profitable new products, each individual evaluation step task
has a specific purpose, keyed primarily to what happens next. Briefly
describe the steps including in The Evaluation System for the Basic New Products
Process and common techniques. (25)

Question No.2. Define the mangement role in creativity by describing obstecles in creativity
and the activities which can encourage the creativity. (25)

Question. No.3. What are the Specific contents of the Product Protocol and how they help
to make the concept clear for the management in an innovation process. (25)

Question No. 4. Case: Nokia (25)

Nokia was founded in Finland in 1865, originally in the paper business, though it eventually
became competitive in the rubber and cable businesses as well by acquisition, and by 1960 had
established an electronics department too. By the 1980s, Kari Kairomo, the CEO, had recognized
the emerging mobile communications market, and Nokias technological capabilities were
increased to include mobile phones as well as computer and television manufacturing. By 1992,
under new president and CEO Jorma Ollila, the strategic decision was made for Nokia to devote
itself to mobile telecommunications, and also to expand geographically out of its traditional
European home base. (As recently as 1991, a quarter of Nokias sales still originated in Finland.)
Nokia launched several mobile handsets over the next few years, and in fact, the fi rst satellite
call was made in 1994 using a Nokia satellite phone. By 1998, Nokia became the worlds largest
mobile phone manufacturer and was well established throughout North and South America as
well as much of Asia. In 1999, Nokia launched the fi rst wireless application protocol
(WAP) handset, which facilitated Internet access. In the years since then, Nokia has continued to
strengthen its worldwide competitive position in the mobile phone market.
In 2001, in conjunction with HPI Research Group, Nokia undertook a research study of its
current customer base to determine the potential of a new concept: marketing to consumers via
their mobile phones, or m-marketing. The study encompassed about 3,300 respondents
representing the core mobile phone market (the 1645 age group) in eleven global markets:
several Western European countries, Brazil, Japan, Singapore, and the United States. The
respondents stated overwhelmingly (88 percent) that they would be receptive to text message
coupons to be redeemed at nearby stores, and 31 percent noted that they would welcome such
coupons. Four factors were identifi ed as the most important in driving acceptance of m-
marketing: choice (user can decide not to receive messages), control (user can easily bypass the
messages), customization (user can fi lter received messages), and mutual benefi t (user gets a
reduction in service cost or some other similar benefi t). The study also looked into another
concept: mobile visual entertainment (Tvlike programs received on a mobile phone). About
three-quarters of the respondents
reported they would be fi ne with advertisements on such programs as long as they are short, and
almost exactly half reported that they would not view such ads as an intrusion. Almost 90 percent
agreed that advertising would be acceptable if they received a service cost reduction as a result.
Finally, the study surveyed the respondents on general desires and benefi ts sought in mobile
phones. It revealed that the respondents showed interest in many different mobile phone features
and functions, in particular text message, audio capability, video capability, and informational
services. This suggests that more multifunctional phones would be welcomed by the core phone
market, especially if the features are viewed as fun and stimulating. In particular, respondents
tended to list messaging and photo capabilities, entertainment, and information functions as most
important to them. The study also examined design implications for their cell phones and
discovered that features such as circular key pads, touch-screen capability, and bright,
interchangeable covers were popular with the teenage
market.
How might Nokia put the results of this research study to use in developing its next-generation
phones? Consider both the specifi c new product concepts listed above as well as the more
overall considerations regarding desired features and functions.