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MKT > Ch.9-- Developing New Products/ The Product Life Cycle > Flashcards

Ch.9-- Developing New Products/ The Product Life Cycle Flashcards

1
Q
  1. What is the first filter in the new product development process?
A

Idea screening, but you keep screening as you go down

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2
Q
  1. At what stage(s) do you eliminate ideas for new products?
A

Between every stage after idea generation

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3
Q
  1. What happens in the Marketing Strategy Development stage?
A

Develop the 4 p’s and a target market (price, product, promotion, place)
If you can’t put together reasonable marketing plan you need to eliminate

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4
Q
  1. What happens in the Business Analysis stage?
A

Concepts that HAVE survived do financial analysis and financial projections/revenue
Done very crudely
If it doesn’t meet min. requirements for product/ bring enough $, then ELIMINATE

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5
Q
  1. What is concept testing?
A

Bring potential customers, show new product, ask them what they think

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6
Q
  1. At what stage would you build the prototype of your product?
A

Product development stage

Prototype: model of particular thing

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7
Q
  1. What is market testing? When would you not use it?
A

Traditional: small scale launch w. the 4 p’s
Launch in small place that is representative of your target mkt
Not use if product is improvement of an existing successful product, also if you want to be the first to be out

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8
Q
  1. What are the characteristics of a good test market?
A

Representative (same demographics as larger target mkt)
Measurable ( Able to monitor the related activity on test mkt)
Somewhat isolated ( well separated from other mkt segments)

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9
Q
  1. For what kind of products was the Product Life Cycle (PLC) theory originally developed?
A

PLC: products go through stages over time that are similar to the stages of human development

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10
Q
  1. How do profits look in the introductory stage of the PLC? What are some of the reasons why this is so?
A

Profits are -
Need to recover the $ spent in product development
Spending a lot of $ n ads this time
Still have not achieved economies of scale

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11
Q
  1. What 2 pricing strategies could you use in the introductory stage of the PLC? Why would you use one instead of the other?
A 
Higher price or lower price (depends on what you want)
High price ( high profits, PRICE SKIMMING)
Low price ( lots of ppl buying it, greater MKT SHARE)
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12
Q
  1. Why are sales slow in the introductory stage of the PLC? Who is buying the product during the introductory stage?
A

BC customers havent heard about it
Don’t have too much to sell in the beginning
Some ppl like to wait for products to become more of use to you

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13
Q
  1. When do healthy profits begin to appear in the PLC?
A

Growth stage, growth of price + profit)

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14
Q
  1. When does competition arrive in the PLC?
A

Also in growth state, they see you’re doing good and copy

need to start developing new and improved bersion, introduced in aturity stage

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15
Q
  1. Normally, what is the longest stage of the PLC?
A

Maturity

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16
Q
  1. At what stage of the PLC do you begin to plan the “New and Improved” version of your product? When should you introduce it?
A

Plan in growth stage, produce in maturity stage

17
Q
  1. What are some of the strategies that you could use in the Maturity stage of the PLC?
A 
Maturity stage= pure competition
Introduce new and improved
Intensive distribution
Reminder ad.
Price cutting/reduction
Find new users/ mkt segments
Find diff. product uses
Increase quantity of use
Reposition
Relaunch
18
Q
  1. What are the 3 strategies that you could use in the Decline stage of the PLC?
A
  • Harvest (take away all ad support, just sits on shelf and let ppl buy w lower cost (loyal customers will keep buying)
  • Retrench: Scale back on distribution, make it less widespread and mass merchandised, go back to exclusive distribution so it is harder to find (SELECTIVE DISTRIBUTION)
  • Divest (sell it to another company)
19
Q
  1. At what 2 stages of the PLC would you use coupons?
A

Coupon: sales promotion, discount that you give for product to increase demand
Introductory and maturity stage (during relaunch)

20
Q
  1. Who are the first customers to adopt an innovation? The last?
A

Adoption: the process through which an innovation spreads through the population
1st customers: Innovators (2.5%) + early adaptors (13.5%)
Last: Laggards (16%)

21
Q

What are the stages of the PLC?

A

Introduction
Growth
Maturity
Sales Decline

MKT (13 decks)

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