Ch.9 Flashcards
Product life cycle stages
Market intro, market growth, market maturity, and sales decline
Market intro
Total industry profit is below profit line, low total industry sales
Market growth
Total industry profit is above profit line, high total industry sales
Market maturity
Total industry profit begins to decline, Total industry sales flatten out
Sales decline
Total industry sales decline, total industry profit drops and new products begin to take over
Typical marketing mix for each PLC stage
Investing in the future, profits go up and down, sales level off and profits continue down, and a time of replacement
New products
A product that is new in any way for the company concerned
Federal trade commission
The federal government agency that polices anti-monopoly laws
How long is a new product considered new?
6 months
New product development process
Idea generation, screening, idea evaluation, development, and commercialization
Idea generation
Ideas from customers and users, marketing research, competitors, other markets, company people, intermediaries
Screening
Strengths and weaknesses, objectives, trends, rough roi estimate
Ideal evaluation
Concept testing, reactions from customers, rough estimates of cost, sales, and profits
Development
R&d, prototype
Commercialization
Complete product and marketing plan, possible rollout
