Chapter 8: Developing the product, service, and value of the offering Flashcards

(32 cards)

0
Q

Customers acquire technology for its ________ and not for the technology itself

A

Customers acquire technology for the solution value

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1
Q

What is the largest single reason for the failure of new products ans services in the marketplace?

A

a lack of thoroughly developed and executed marketing plans

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2
Q

When do profits classically peak in the product life cycle?

A

During the late-growth/early maturity time frame

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3
Q

In slow changing markets periods of viable application are usually _____ for products

A

Longer

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4
Q

What are the five stages o the PLC?

A
Development
Introduction
Growth 
maturity
decline
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5
Q

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.

A

Development Stage

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6
Q

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

A

introduction stage

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7
Q

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

A

Unique or first time

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8
Q

In what stage of the PLC is pricing strategy more about positioning in the market rather than profitability?

A

Introduction Stage

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9
Q

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.

A

Growth Stage

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10
Q

In what stage have the early majority or pragmatists accepted the product

A

Growth stage

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11
Q

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.

A

maturity stage

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12
Q

in what stage does price become a more important part of the marketing mix

A

Maturity stage

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13
Q

In what stage do less competitive and weaker competitors drop out of the market through consolidation or leaving the industry?

A

decline stage

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14
Q

In this stage price and long term contracts become a major part of the marketing mix

A

decline stage

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15
Q

In what stage is promotion reduced to minimal levels

A

decline stage

16
Q

How can marketers ensure that the customer relationship is not damaged when eliminating a product?

A

Divesting the product, selling the business to the customer, introducing the customer to the remaining suppliers

17
Q

What are the steps in the basic new product development process?

A
  1. Ideas generation
  2. Product Screening
  3. Business case analysis
  4. Product /Strategy/Plan development
  5. Test market
  6. product launch
  7. hand off to the innovation translation/customer education team
18
Q

What type of organization looks to customer needs for new product ideas?

A

An organization operating under the marketing concept

19
Q

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?

A

proprietary disclosure agreements

20
Q

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.

A

Innovation translation approach

21
Q

customer orientation maximizes what?

A

customer input in the product creation process

22
Q

The engineering approach has a ___ focus that often ignores potential market

23
Q

Checkpoints after each stage of the product development process.

24
Firms that are first to market with a new product have an _____ advantage
exploitable
25
The measurement of those opportunities that are not pursued because resources have been committed to the new product development
Opportunity cost
26
What is often the most deficient part of a new product plan
The marketing effort
27
Product funds are often used to validate technological assumptions bu not ______ assumptions
marketing
28
What is the biggest reason for new product failures?
No real need exists for the product
29
What is the second most reason for new product failure?
Inability of "me too" products to penetrate existing markets
30
Those who work with the enemy for their own short-term benefit
collaborators
31
data that while not protected by patents is not available to the general public and has significant value to the owner
proprietary information