Which of the following is an internal source of new product ideas for a company?
A) trade magazines
B) marketing research firms
C) government agencies
D) competitor’s ads
The correct answer and explanation is :
Correct Answer: (A) Trade Magazines
Explanation:
New product ideas for a company can originate from both internal and external sources. Internal sources come from within the organization, including employees, research and development (R&D), customer feedback, and company data analysis. External sources include market trends, competitor strategies, suppliers, and customer insights.
Why Trade Magazines Are an Internal Source:
Trade magazines focus on industry-specific news, technological advancements, and trends. While they are published externally, companies often subscribe to and analyze these magazines internally to gather insights. Employees use this information to brainstorm and generate new product ideas relevant to the industry.
Why the Other Options Are External Sources:
- Marketing Research Firms (B) – External:
These firms operate outside a company, collecting and analyzing market data. Companies hire them to gain consumer insights, but the ideas originate externally. - Government Agencies (C) – External:
While regulatory bodies may introduce new guidelines that influence product development, they do not directly contribute to a company’s internal idea generation. - Competitor’s Ads (D) – External:
Observing competitors’ advertisements can help a company identify trends, but this is an external influence rather than an internal source of product ideas.
Conclusion:
Trade magazines serve as an internal source because companies use them internally to analyze trends and generate ideas within their teams. Other options are external because they originate from outside the company.