chapter 2 Flashcards
3 steps to opp identification systematic process
- ongoing marketing planning
- ongoing corporate planning
- special opportunity analysis
example of ongoing marketing planning
line extensions to meet a competitors cheaper price
example of corporate planning
own market or get out of it
example of special opportunity
one or more people take inventory of firms resources to find if there is an underutilized resource
4 opportunity categories
- underutilized resource
- new resources (ex: discovered a new material)
- external mandate (ex: new competition, market crash)
- internal mandate (ex: sales targets, upper management desires, laws/policies)
existing products require ___, new products require ___
forecasts, market size information
how to assess product market?
- market potential
- available market
- target market
what is market potential?
pool of all customers for whom the product holds of some relevance
what is available market?
Prospective consumers with interest, income, and access to the product.
what is target market?
The part of the available market the company decides to pursue with marketing activities
what is the goal of the build-up method?
Estimate market size and forecast demand. Start broad, narrow down.
steps to build-up method
- Upper Bound: Total potential customers.
- Reduce by disqualifying factors.
- Determine purchase frequency and quantity.
- Estimate average price to calculate total sales dollars.
what is the main goal of the concept generation phase?
Translate opportunity into a product concept, Identify problems customers or businesses have and suggest solutions.
where do ideas come from in the concept generation phase?
existing customers, partners, suppliers
what is the main question to ask in concept testing?
what do customers think about it?
what are the two parts to phase 3?
- evaluating, screening, sorting
- project evaluation
what phase is “protocol” in?
phase 3
what phase is most of the “fuzz” removed?
phase 3
what is protocol development
Define product benefits (not just features).
key aspects of phase 4: development
item is formed, marketing plan is sketched, prototype is formed, business/financial plan is formed, considerations like special training needed are brought up
key aspect of phase 5: launch
it is a phase not a point in time
T or F: It’s too late to decide to pull the plug in phase 5
false
what phase includes a pre-announcement?
5
what phase would a press release plan be needed?
5
at which phase is the market value of the product the most in?
5
what is the goal of agile product development?
provide customer satisfaction by continuous software improvement and delivery
what are “sprints” or “scrum” used in?
agile product development
what type of development is speed and reducing risks key factors of?
agile product development
agile-stage-gate
blend of agile and traditional product development
3 pros to speeding up time from product to market
- product will be on market for long period of time
- attract customers early and block competitors
- build up firms reputation
what is PIC?
A Product Innovation Charter (PIC) is like a roadmap or plan that helps a company stay on track while developing new products. It outlines the who, what, why, and how of the product development process.
5 methods to accelerate time to market
- PIC
- 3rd gen product process
- portfolio management
- quality at every phase
- support smooth perfect development by utilizing cross functional teams
goal of minimum viable product
version of product with just enough core features to satisfy customers and gather feedback for future development
pros of MVP
- quick to launch
- cost efficient testing
- quick insights
- produce whichever features matter most to customers
prioritizing speed sacrificies ___
flexibility and accuracy
prioritizing flexibility sacrifices ___
accuracy
prioritizing accuracy sacrifices __
flexibility
What kind of product have higher failure rates but higher profits and revenues when they succeed
new to world products
what are disruptive innovations?
innovations that create a new market
Disruptive innovations are most often created by…
Small firms targeting overlooked market segments
