Ch 10 Flashcards
What are the types of business products?
Derived demand, components, support products (e.g., installations, accessory equipment).
What are the seven stages of the new product development process?
- New-Product Strategy Development 2. Idea Generation 3. Screening and Evaluation 4. Business Analysis 5. Development 6. Market Testing 7. Commercialization.
What is the first stage of the new product development process?
New-Product Strategy Development: Define the role of the new product.
What is involved in the idea generation stage? (2nd Stage)
Brainstorming, customer suggestions, crowdsourcing.
What occurs during the screening and evaluation stage? (3rd Stage)
Evaluate ideas internally and externally.
What is assessed during the business analysis stage? (4th Stage)
Financial viability.
What happens during the development stage? (5th Stage)
Create prototypes.
What is market testing? (6th Stage)
Test the product in realistic conditions.
What is commercialization? (7th Stage)
Launch the product.
What are some reasons for new product failure?
Insignificant point of difference, poor execution of the marketing mix, bad timing, poor product quality.
What is continuous innovation?
Minor changes (e.g., new toothpaste flavor).
What is dynamically continuous innovation?
Disrupts routines but doesn’t require new learning (e.g., smartphones).
What is discontinuous innovation?
Requires new learning and consumption patterns (e.g., electric cars).
What is a protocol in new product development?
A statement that identifies a well-defined target market, customer needs, and what the product will do to satisfy them.
What is open innovation?
Using external and internal ideas to develop new products (e.g., crowdsourcing).
What is feature bloat?
Adding unnecessary features to a product, which can lead to consumer fatigue.
What is market testing?
Exposing a product to prospective consumers under realistic conditions to gauge interest (e.g., test markets).
What is commercialization in product development?
Launching a new product in full-scale production and sales.
What is disruptive innovation?
A new product or service that creates a new market and eventually disrupts an existing one (e.g., smartphones disrupting traditional phones).
What are Convenience Products?
Frequently purchased items (e.g., toothpaste).
What are Shopping Products?
Items compared on price, quality, or style (e.g., TVs).
What are Specialty Products?
Items consumers make a special effort to buy (e.g., Rolex watches).
What are Unsought Products?
Items consumers don’t initially want (e.g., burial insurance).
