Ch. 8 Flashcards
What are possible idea sources?
internal ideas, competitors, distributers and suppliers, customers
Crowdsourcing
Inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the new product innovation process.
Idea screening
Screening new product ideas to spot
good ones and drop poor ones as soon
as possible.
Product concept
A detailed version of the new
product idea stated in meaningful
consumer terms.
Concept testing
Testing new product concepts with
a group of target consumers to find
out if the concepts have strong
consumer appeal.
Marketing strategy development
Designing an initial marketing
strategy for a new product based
on the product concept.
marketing strategy statement consists of three parts. What are they?
The first part describes the target market; the planned value proposition; and the sales, market-share, and profit goals
for the first few years.
The second part of the marketing strategy statement outlines the product’s planned price, distribution, and marketing budget for the first year
The third part of the marketing strategy statement describes the planned long-run sales, profit goals, and marketing mix strategy
Business analysis
A review of the sales, costs, and profit
projections for a new product to find
out whether these factors satisfy the
company’s objectives.
Product development
Developing the product concept into
a physical product to ensure that the
product idea can be turned into a
workable market offering
Test marketing
The stage of new product development
in which the product and its proposed
marketing program are tested in
realistic market settings.
Commercialization
Introducing a new product into the
market
Customer-centered new product
development
New product development that focuses
on finding new ways to solve customer
problems and create more customer satisfying
experiences.
Team-based new product
development
used to get new products to market faster New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness
innovation management system
to collect, review, evaluate, and manage new product ideas.
PLC
Product life cycle (PLC)
The course of a product’s sales and profits over its lifetime.
Product development
begins when the company finds and develops a new product
idea. During product development, sales are zero, and the company’s investment
costs mount
5 steps of product life cycle
product developement, Introduction, growth, maturity, decline
Introduction
is a period of slow sales growth as the
product is introduced in the market. Profits are nonexistent
in this stage because of the heavy expenses of
product introduction.
Growth
is a period of rapid market acceptance and
increasing
profits.
Maturity
is a period of slowdown in sales growth because
the product has achieved acceptance by most
potential buyers. Profits level off or decline because
of increased marketing outlays to defend the product
against competition
Decline
is the period when sales fall off and profits drop
what 3 concepts can describe the product life cycle?
PLC concept can describe a product class (gasolinepowered
automobiles), a product form (SUVs), or a brand (the
Ford Escape).
Product classes have
the longest life cycles; the sales of many
product classes stay in the mature stage for a long time.
Product forms,
tend to have the standard PLC shape. Product
forms such as “dial telephones” and “VHS tapes” passed
through a regular history of introduction, rapid growth, maturity, and decline
A specific brand’s life cycle can
change quickly because of changing competitive
attacks and responses,
Style
A basic and distinctive mode of
expression.
Fashion
A currently accepted or popular style in
a given field.
Fad
A temporary period of unusually high
sales driven by consumer enthusiasm
and immediate product or brand
popularity.
Introduction stage
The PLC stage in which a new product
is first distributed and made available
for purchase.
Growth stage
The PLC stage in which a product’s
sales start climbing quickly.
Maturity stage
The PLC stage in which a product’s
sales growth slows or levels off.
modifying the market,
the company tries to increase consumption by finding new users and new market segments for its brand
Decline stage
The PLC stage in which a product’s
sales fade away.
