Chapter 10 Developing and Managing Products

Question 1

new product

Answer 1

a product new to the world/market

Question 2

brainstorming

Answer 2

getting a group to think of unlimited number of ways to solve a problem

Question 3

screening

Answer 3

eliminating ideas that are inconsistent with the organization’s new product strategy

eliminating ideas that don’t align with the company’s objective

Question 4

concept test

Answer 4

evaluation of a new product idea, usually before any types of prototype has been created

evaluation of new product idea

Question 5

business analytics

Answer 5

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

Question 6

development

Answer 6

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

Question 7

test marketing

Answer 7

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

Question 8

simulated(laboratory) marketing test

Answer 8

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

Question 9

commercialization

Answer 9

the final decision to market a product

Question 10

adopter

Answer 10

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

Question 11

innovation

Answer 11

a product perceived as new by a potential adopter

Question 12

diffusion

Answer 12

the process by which the adoption of an innovation spreads

Question 13

product life cycle (PLC)

Answer 13

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

Question 14

product category

Answer 14

all brands that satisfy a particular type of need

Question 15

introductory stage

Answer 15

the full-scale launch of a new product into the marketplace

Question 16

growth stage

Answer 16

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

Question 17

maturity stage

Answer 17

a period during which sales increase at a decreasing rate

Question 18

decline stage

Answer 18

a long-run drop in sales