Chapter 11 Flashcards
New Product:
A product new to the world, the market, the producer, the seller or some combination of these.
New Product Strategy:
A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
Product Development:
A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
Brainstorming:
The process of getting a group to think of unlimited ways to vary a product or solve a problem
Screening:
The first filter in the product development process, which illuminates ideas that are inconsistent with the organizations new-product strategy or obviously inappropriate for some other reason
Concept Test:
A test to evaluate a new product idea, usually before any prototype has been created
Business Analysis:
The second stage of screening process where preliminary figures for demand, cost, sales, and profitability are calculated
Development:
The stage in the product development process in which a prototype is developed and a marketing strategy is outlined
Simultaneous Product Development:
Team oriented approach to new-product development
Test Marketing:
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
Simulated (Laboratory) Market Testing:
The presentation of advertising and other promotional materials for several products, including a test product, to members of the products target market
Commercialization:
The decision to market a product
Innovation:
A product perceived as new by a potential adopter
Diffusion:
The process by which the adoption of an innovationan spreads
Product Life Cycle (PLC)
The concept that provides a way to trace the stages of a product’s acceptance, from his introduction (birth) to its decline (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 grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
Maturity Stage:
A period during which sales increase at a decreasing rate
Decline Stage
A long-run drop in sales
