Chapter 6 - Developing new products and managing the product life cycle Flashcards
What is idea generation?
Systematic search for new-product ideas
What is crowdsourcing?
Inviting broad communities of people
(customers, employees, independent scientists, researchers, public)
…into new-product innovation process
What is idea-screening?
Screening new product ideas
Spot good ideas
Drop poor ones ASAP
What is product concept?
Detailed version of new product idea stated in meaningful consumer terms
What is concept testing?
Testing new product concepts with group of target consumers
Find out if concepts have strong consumer appeal
What is a business analysis?
Review of sales, costs and profit projections for new product
To find out whether these factors satisfy company’s objectives
What is test marketing?
Safe of new product development
Product and its proposed marking programme tested in realistic market settings
What is commercialisation?
Introducing new product into market
What is customer-centred new product development?
New product development focused on finding new ways to solve customer problem
Create more satisfying customer experiences
What is team-based new product development?
Various company departments work closely together
Overlapping steps in product development process
Saves time and increases effectiveness
What is product life cycle? (PLC)
Course of a products’ sales and profits over its life time
5 distinct stages:
1) Product-Development
2) Introduction
3) Growth
4) Maturity
5) Decline
What is a Fad?
Temporary period of unusually high sales
Driven by consumer enthusiasm and immediate product/brand popularity
What is the Introduction stage of the PLC?
New product is first distributed and made available for purchase
What is the Growth stage of the PLC?
Product sales start climbing quickly
What is the Maturity stage of the PLC?
Product’s sales growth slows/levels of
