Chapter 10 Developing and Managing Products Flashcards
new product
a product new to the world/market
brainstorming
getting a group to think of unlimited number of ways to solve a problem
screening
eliminating ideas that are inconsistent with the organization’s new product strategy
eliminating ideas that don’t align with the company’s objective
concept test
evaluation of a new product idea, usually before any types of prototype has been created
evaluation of new product idea
business analytics
the second stage of the screening process where:
demand, cost, sales and profitability are calculated
2nd stage of the screening process:
-demand, cost, sales and profitability are calculated
development
the 5th stage in the new product development process:
-in which a prototype and marketing strategy is outlined/planned
stage in the product development process:
-a prototype of the marketing strategy is planned and outlined
test marketing
the limited introduction of a product and marketing program to determine the reactions of potential customers in a market situation
a marketing test to determine how well the product/idea will do in the actual market
or
a limited introduction to a product or service in a given market
simulated(laboratory) marketing test
the presentation of advertising and other promotional materials for several products, including the test products, to members of the product target market
having a mock/real store and seeing what products experimenters pick
commercialization
the final decision to market a product
adopter
a consumer who was satisfied enough with their trail experience with the product to use it again
a consumer who likes the product and want to continue to use it
innovation
a product perceived as new by a potential adopter
diffusion
the process by which the adoption of an innovation spreads
product life cycle (PLC)
a concept that traces the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
stages from the birth of a product to its death
product category
all brands that satisfy a particular type of need
introductory stage
the full-scale launch of a new product into the marketplace
growth stage
the second stage of the product life cycle when sales typically grows at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering companies, and profits are healthy
maturity stage
a period during which sales increase at a decreasing rate
decline stage
a long-run drop in sales
