Chapter 8: Developing the product, service, and value of the offering Flashcards
Customers acquire technology for its ________ and not for the technology itself
Customers acquire technology for the solution value
What is the largest single reason for the failure of new products ans services in the marketplace?
a lack of thoroughly developed and executed marketing plans
When do profits classically peak in the product life cycle?
During the late-growth/early maturity time frame
In slow changing markets periods of viable application are usually _____ for products
Longer
What are the five stages o the PLC?
Development Introduction Growth maturity decline
In this stage of the PLC, the product is not completely defined and profits do not exist yet while a target price or value point is being considered.
Development Stage
In this stage, profits are negative or break through to positive near the end of the stage. The product is somewhat basic and comptition has yet to force a need for differentiation
introduction stage
The logistical process experiences a significant learning curve as many of the elements of a new offering have ben outsourced as the result of a ______ or ______ value network
Unique or first time
In what stage of the PLC is pricing strategy more about positioning in the market rather than profitability?
Introduction Stage
In this stage of the PLC, profits are increasing rapidly s new customers accept the product. The need for product differentiation becomes apparent. market penetration pricing may be appropriate as competition puts pressure on high margins.
Growth Stage
In what stage have the early majority or pragmatists accepted the product
Growth stage
IN this stage of the PLC, products have become standards in the business-to -business markets. The market owner is beginning replacement of the offering. Promotion is used to reinforce the buying decision.
maturity stage
in what stage does price become a more important part of the marketing mix
Maturity stage
In what stage do less competitive and weaker competitors drop out of the market through consolidation or leaving the industry?
decline stage
In this stage price and long term contracts become a major part of the marketing mix
decline stage
In what stage is promotion reduced to minimal levels
decline stage
How can marketers ensure that the customer relationship is not damaged when eliminating a product?
Divesting the product, selling the business to the customer, introducing the customer to the remaining suppliers
What are the steps in the basic new product development process?
- Ideas generation
- Product Screening
- Business case analysis
- Product /Strategy/Plan development
- Test market
- product launch
- hand off to the innovation translation/customer education team
What type of organization looks to customer needs for new product ideas?
An organization operating under the marketing concept
What must be signed when customers working with suppliers in development want assurance that the supplier is not taking any product or market information to competitors?
proprietary disclosure agreements
This approach is used to validate a new market segment. When new business is realized as a result of collaboration with a customer, the product is a customized offering.
Innovation translation approach
customer orientation maximizes what?
customer input in the product creation process
The engineering approach has a ___ focus that often ignores potential market
narrow
Checkpoints after each stage of the product development process.
Stage gates
Firms that are first to market with a new product have an _____ advantage
exploitable
The measurement of those opportunities that are not pursued because resources have been committed to the new product development
Opportunity cost
What is often the most deficient part of a new product plan
The marketing effort
Product funds are often used to validate technological assumptions bu not ______ assumptions
marketing
What is the biggest reason for new product failures?
No real need exists for the product
What is the second most reason for new product failure?
Inability of “me too” products to penetrate existing markets
Those who work with the enemy for their own short-term benefit
collaborators
data that while not protected by patents is not available to the general public and has significant value to the owner
proprietary information
