Chapter 10-Developing new products and services Flashcards
Product
A good, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value
Product mix
the number of product lines offered bib a company
Consumer goods
products purchased by the ultimate consumer
Business goods
Products that assist directly or indirectly in providing products for resale
Connivence good
Items that the consumer purchases frequently and with a minimum of shopping effort
Shopping goods
Items for which the consumer compares several alternatives on such criteria as price quality or style
Specialty goods
Items that a consumer makes a special effort to search out and buy
Unsought goods
Items that the consumer either does not know about or knows but does not initially want
Production goods
Items used in the manufacturing process that become part of the final product
Support Goods
Items used to assist in producing other products and services
New product focus
The stages a firm uses to identify business opportunities and convert them to a saleable good or service
New-Product development
The first stage in a new product process, providing the necessary focus, structure, approach, and guidelines for pursuing innovation
Six Sigma
A means to “Delight the customer” by achieving quality through highly disciplined process that focuses on developing and delivering near perfect products and services
Idea Generation
Developing a pool of concepts as candidates for new products
Screening and evaluating
The stage of new product process that involves internal and external evaluations of the new product ideas to eliminate those that warrant no further effort
Business analysis
The stage of new product process that involved specifying the product features and marketing strategy and making financial projections needed to commercialize a product
Development
the stage of new product development that involves turning the idea on paper into a prototype
Market Testing
Exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy
Commercialization
The stage that involves positioning and launching a new product in full-scale production and sales in the new product process
Slotting fee
A payment that a manufacturer makes to place a new item on a retailers shelf
Failure fee
A penalty payment a manufacturer makes to compensate a retailer for failed sales from its valuable shelf space
New Product Process Steps
New-Product Strategy Development-Idea Generation-Screening and Evaluating -Business Analysis
Development
Market Testing
Commercialization
Degree of Tangibility
Non Durable Goods
Durable Goods
Services
Types of consumer goods
Convenience
Shopping
Specialty
Unsought
Types of Business Goods
Production goods
Support Goods
A product can be defined as new if
a. ) Functionality Change
b. ) Falls within Industry of Canada definition
c. ) Product line extension
