Chapter 8: New Product Development Flashcards
offering
A generic term often used by marketers to denote the broad range of possibilities of product attributes and sources of the product value.
core product
All the benefits the product will provide for consumers or business customers.
actual product
The physical good or the delivered service that supplies the desired benefit.
augmented product
The actual product plus other supporting features, such as a warranty, credit, delivery, installation, and repair service after the sale.
design thinking
process that draws upon logic, imagination, intuition, and systemic reasoning to explore possibilities of what could be—and to create desired outcomes that benefit the end user (the consumer). Design thinking is also referred to as human-centered design.
ideation
Idea generation is characterized by alternating divergent and convergent thinking, typical of the design-thinking process.
divergent thinking
Coming up with as many new ideas as possible and exploring new “out-of-the-box” alternatives.
convergent thinking
After successful divergent thinking, convergent thinking moves toward analyzing the different ideas to come to a decision on the best choice.
innovators
The first segment (roughly 2.5 percent) of a population to adopt a new product.
continuous innovation
a modification to an existing product, such as when Samsung and others reinvigorated the TV market by offering thinner sets that featured high-definition viewing.
dynamically continuous innovation
a pronounced modification to an existing product that requires a modest amount of learning or change in behavior to use it.
disruptive innovation
which refers to an innovation that creates a new market and value chain and eventually disrupts an existing market and value chain, displacing established market-leading firms, products, and alliances.
discontinuous innovation
the product must create major changes in the way we live.
early adaptors
are concerned about social acceptance, so they tend to gravitate toward products they believe will make others think they are cutting-edge or fashionable.
early majority
They are typically middle-class consumers and are deliberate and cautious. The early majority of consumers have slightly above-average education and income
late majority
The adopters who are willing to try new products when there is little or no risk associated with the purchase, when the purchase becomes an economic necessity, or when there is social pressure to purchase.
laggards
The last consumers to adopt an innovation.
adoption pyramid
Reflects how a person goes from being unaware of innovation through stages from the bottom up of awareness, interest, evaluation, trial, adoption, and confirmation.
maintenance, repair, and operating products
Goods that a business customer consumes relatively quickly.
prototypes
Test versions of a proposed product
market test/test market
Testing the complete marketing plan in a small geographic area that is similar to the larger market the firm hopes to enter.
commercialization
The final step in the product development process is launching a new product into the market.
disruptive innovation
An innovation that creates a new market and value chain and eventually disrupts an existing market and value chain, displacing established market-leading firms, products, and alliances.
first mover advantage
Being the first firm to enter a market with a new product, perhaps as a disruptive innovator.
research and development
A well-defined and systematic approach to how innovation is done within the firm.
new product development
The phases by which firms develop new products, including idea generation, product concept development and screening, marketing strategy development, business analysis, technical development, test marketing, and commercialization.
value co-creation
The process when a company and its customers work together to create a product.
