Chapter 10 Flashcards
define product development
the process of creating or modifying a products-.
effective and efficient product development ensures what for the company?
- new products are consistent with insurers overall strategic marketing objectives
- NP serve designated taget markets appropriately
- company does not waste its resources on unsuccessful new products
- new products generate enough revenue to pay associates benefits and expenses as well as return a modest profit to company owners
what are the 3 basic types of new insurance products?`
rate change
revision
new product
name the basic 5 steps of product development
product planing comprehensive business analysis technical design product implementation perfomance monitoring and review
At the end of the first 3 steps senior management will determine what?
wheter to
- continue the development of the BP,
- request additional informaiton or revision to the product idea
- drop the new product idea
what are the 3 basic activities of product planing?
idea generation
screening
concept development/testing
define idea generation when it comes to product planing
involves searching for new product ideas that are consistent with the companys overall product developement strategy and the needs of its target markets.
do companies stress over creativity or technical details for new product ideas during idea generation?
creativity
define screening when it comes to product planing
a weeding out process designed to evaluate ate new product ideas quickly and inexpensively and to select those ideas that warrant futher investigation.
what would a project team look at when screening for new products?
- compatible with company’s corporate goals and existing systems and distribution channels
- satisfies a real need in the target markets inw hich the company operates
- replaces slaes of exsitating products instead of generating new sales.
define concept testing when it comes to product planing
its a maketing reseach technique desgined to measure the acceptability of new product ideas, new promotion campaigns or other new marketing elements before entering productions.
what is a focus group?
small group interviews, led by a moderato in which participants discuss their opinions and feelings about a given topic.
What is a comprehensive business analysis?
where the company conducts research to determine how feasible and marketable a proposed product is.
what 5 elements are included in a comprehensive business analysis?
- market analysis
- product design objectives
- feasibility study
- marketing plan
- marketing projections
what is market analysis
an evaluations of all the environmental factors that might affect product sales.