9. New-Product Development and Product Life-Cycle Strategies Flashcards
Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Test marketing Commercialisation
New-product development process
The development of original products, product improvements, product modifications and new brands through the firm’s own R&D efforts
New-product development
The systematic search for new-product ideas
Idea generation
What are sources of idea generation?
Internal sources
External sources (customers)
Crowdsourcing
Inviting broad communities is people—customers, employees, independent scientists and researchers and even the public at large—into the new-product innovation process
Crowdsourcing
Screening new-product ideas to spot new ideas and to drop poor ones as soon as possible
Idea screening
A detailed version of the new-product idea stated in meaningful consumer terms
Product concept
Testing new-product concepts with a group of target consumers to find out if the concepts have strong customer appeal
Concept testing
Designing an initial marketing strategy for a new product based on the product concept
Market strategy development
A review if the sales, costs and profit projections for a new product to find out whether these factors satisfy the company’s objective
Business analysis
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering
Product development
The stage of new-product development in which the product and its proposed marketing program are tested in more realistic market settings
Test marketing
Introducing a new product into the market
Commercialisation
New-product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences
Customer-centred new-product development
An approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness
Team-based new-product development
The course of a product’s sales and profits over it’s lifetime
Involves give distinct stages: product development, introduction, growth, maturity and decline
Product life cycle (PLC)
A basic and distinctive mode of expression
Style
A currently accepted or popular style in a given field
Fashion
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
Fad
The product life-cycle stage in which the new product is first distributed and made available for purchase
Introduction stage
The product’s life-cycle stage in which a product’s sales start climbing quickly
Growth stage
The product life-cycle stage in which sales growth slows or levels off
Maturity stage
The product life-cycle stage in which a product’s sales decline
Decline stage
Social responsibility in product decisions
Issues of international product and services marketing
Additional product and service considerations
