Chapter 8 Vocabulary Flashcards
The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts
New product development
The systematic search for new product ideas
Idea generation
The 8 major stages in order of new product development
Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Test marketing Commercialization
Three types of idea generation
Internal sources
External sources
Crowdsourcing
Inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large— into the new product innovation process (inside and outside sources)
Crowdsourcing
Screening new product ideas to spot good ones and drop poor ones as soon as possible
Idea screening
A detailed version of the new product idea stated in meaningful consumer terms
Product concept
An idea for a possible product that the company can see itself offering to the market
Product idea
The way consumers perceive an actual or potential product
Product image
Translate your product into a detailed concept stated in meaningful consumer terms (what will the consumer get out of this product?)
Concept development
Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
Concept testing
Designing an initial marketing strategy for a new product based on the product concept
Marketing strategy development
Three parts of the marketing strategy development
Target market and initial objectives
Launch tactics
Long term objectives
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives
Business analysis
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering
Product development
The stage of new product development at which the product and its proposed marketing program are tested in realistic market settings
Test marketing
Introducing a new product into the market
Commercialization
New product development that focuses on finding new ways to solve customer problems and create more customer satisfying experiences
Customer-centered new product development
New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness
Team-based new product development
The course of a product’s sales and profits over its lifetime
Product life cycle (PLC)
5 steps in the PLC
Product development Introduction Growth Maturity Decline
The company finds and develops a new product idea; sales are zero and the company’s investment costs mount
Product development
Period of slow sales growth as the product is introduced in the market; profits are nonexistent because of the heavy expenses of product introduction
Introduction
A period of rapid market acceptance and increasing profits
Growth
