Chapter 12: Developing and Managing Products Flashcards
line extension
development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs
product modification
changes in one or more characteristics of a product
quality modifications
changes relating to a product’s dependability and durability
functional modifications
changes affecting a product’s versatility, effectiveness, convenience, or safety
aesthetic modifications
changes relating to the sensory appeal of a product
new-product development process
a seven-phase process for introducing products: idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization
idea generation
seeking product ideas to achieve organizational objectives
screening
selecting the ideas with the greatest potential for further review
concept testing
seeking a sample of a potential buyers’ responses to a product idea
business analysis
evaluating the potential impact of a product idea on the firm’s sales, costs, and profits
product development
determining if producing a product is technically feasible and cost effective
test marketing
a limited introduction of a product in geographic areas chosen to represent the intended market
commercialization
refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product
product differentiation
creating and designing products so that customers perceive them as different from competing products
quality
the overall characteristics of a product that allow it to perform as expected in satisfying customer needs
level of quality
the amount of quality a product possesses
consistency of quality
the degree to which a product has the same level of quality over time
product design
how a product is conceived, planned, and produced
styling
the physical appearance of a product
product features
specific design characteristics that allow a product to perform certain tasks
customer services
human or mechanical efforts or activities that add value to a product
product positioning
the decisions and activities intended to create and maintain a certain concept of the firm’s product, relative to competitive brands, in customers’ minds
product deletion
eliminating a product from the product mix when it no longer satisfies a sufficient number of customers
product manager
the person within an organization who is responsible for a product, a product line, or several distinct products that make up a group
