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MKT 319 Exam 2 > Chapter 6: Product Development > Flashcards

Chapter 6: Product Development Flashcards

1
Q

What is a New Product?

A

A product new to a company in any way; all come with a new set of risks.

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2
Q

What defines a New-to-the-Market product?

A

Inventions never seen before; creates a new market.

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3
Q

What is Disruptive Technology?

A

Technology that shakes up or establishes a new industry.

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4
Q

What are New-category Entries?

A

Products new to a company, but not new to the market.

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5
Q

What are Product-Line Extensions?

A

A group of related products marketed by a company.

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6
Q

What are Revamped Products?

A

Products with new packaging, different features, updated designs, and functions.

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7
Q

What are the stages of the New-Product Development Process?

A

The process of conceiving, testing, and launching a new product in the marketplace.

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8
Q

What is New-Product Strategy Development?

A

The direction a company will take when it develops a new product.

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9
Q

What is Idea Generation?

A

The stage where a product concept lists new products.

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10
Q

What is Idea Screening?

A

Evaluating ideas to determine their fit.

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11
Q

What is Business Analysis?

A

Analyzing a new product to determine its profitability potential.

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12
Q

What is Product Development?

A

Determining if a product can be produced and offered in a way that meets customer needs and generates profits.

Example: Prototypes.

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13
Q

What is Test Marketing?

A

Introducing a new product in final form to a limited market to test all 4Ps and fine-tune the marketing plan.

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14
Q

What is Product Launch?

A

Completing all final preparations for making a fully tested product available to the market.

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15
Q

How can risks be reduced in new product development?

A

By listening to customers about their needs and wants, committing to the New Product Development Process, and understanding market trends through environmental scanning.

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16
Q

What is Product Adoption?

A

Occurs when consumers purchase and use a new product.

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17
Q

What is Diffusion?

A

The process by which a product is adopted and spreads across various types of adopters.

18
Q

What is the Consumer Adoption Process?

A

The process by which customers formally accept and purchase products.

19
Q

What are the types of adopters?

A

Different categories of consumers based on their adoption speed and behavior.

20
Q

Who are Innovators?

A

Consumers that adopt a product almost immediately after it’s launched.

21
Q

Who are Early Adopters?

A

Consumers that purchase and use a product soon after it has been introduced, but not as quickly as Innovators.

22
Q

Who are Early Majority?

A

Consumers that gather more information and spend more time deciding to make a purchase.

23
Q

Who are Late Majority?

A

Consumers that rely on others for information, buying a good or service because others have already done so.

24
Q

Who are Laggards?

A

Consumers that don’t like change and may remain loyal to a product until it’s no longer available for sale or stops working.

25
Q

What are the product characteristics that affect adoption rate and diffusion?

A

Competitive Advantage, Compatibility, Observability, Complexity, Trialability

26
Q

What is Competitive Advantage?

A

The superior position a product enjoys over competing products if consumers believe it has more value than other products in its category.

27
Q

What does Compatibility refer to in product characteristics?

A

How well a new product fits into potential customers’ needs, values, product knowledge, and past behaviors.

28
Q

What is Observability in the context of product diffusion?

A

When people can see others using a product and perceive value in its use, then the product will diffuse quickly.

29
Q

How does Complexity affect product diffusion?

A

The easier a product is to use and understand, the faster it will diffuse.

30
Q

What is Trialability?

A

The extent to which a potential customer can examine the merits of a new product without having to spend a lot of money or time doing so.

31
Q

What are the 5 stages of the Product Life Cycle?

A

1) New Product Development 2) Introduction 3) Growth 4) Maturity 5) Decline

32
Q

What occurs during the New Product Development stage?

A

The 7 stages of product development, before the product is ‘born’.

33
Q

What happens during the Introduction stage of the Product Life Cycle?

A

Occurs after the firm launches the product into the marketplace and innovators begin to buy it; sales are slow.

34
Q

What characterizes the Growth stage of the Product Life Cycle?

A

Increases in sales, profits, and competition; Early adopters and Early Majority.

35
Q

What is the focus during the Maturity stage?

A

The firm focuses on profitability and maintaining the firm’s market share for as long as possible; Late Majority and repeat buyers.

36
Q

What characterizes the Decline stage of the Product Life Cycle?

A

Decreases in sales and profits; no work into improving or changing the product.

37
Q

What are the Product Strategies during the Introduction stage?

A

Offer small number of models.

38
Q

What are the Place Strategies during the Growth stage?

A

Make intensive effort to expand distribution.

39
Q

What are the Promotional Strategies during the Maturity stage?

A

Promote to point out brand attributes and differentiating features.

40
Q

What are the Price Strategies during the Decline stage?

A

Price to maintain small profit; increase price if product appeals to niche market.

41
Q

What is the ethical obligation in New Product Development?

A

Obligation to produce safe products; quick recall if issues are found.

42
Q

What does Sustainability in New Product Development refer to?

A

Building products and services in a way that eliminates negative environmental impacts.

MKT 319 Exam 2 (5 decks)

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