Chapter 9

Question 1

ways to obtain new products:

Answer 1

aquisition
new product development

Question 2

idea generation

Answer 2

systematic search for new product ideas

Question 3

Crowdsourcing

Answer 3

inviting broad communities of people into the new product innovation process

Question 4

idea screening

Answer 4

screening new product ideas to spot good ones and drop poor ones asap

Question 5

R-W-W

Answer 5

is there real need?
can we win?
is it worth doing?

Question 6

Product concept

Answer 6

detailed version of the new product idea states in meaningful consumer terms

Question 7

product image

Answer 7

the way consumers perceive an actual or potential product

Question 8

concept testing

Answer 8

testing new product concepts with a group of target consumers to find out of the concepts have strong consumer appeal

Question 9

marketing strategy development

Answer 9

designing an initial marketing strategy for a new product based on the product concept

Question 10

marketing strategy statements consist of:

Answer 10

1. target marketing description
2. value proposition plann
3. sales, market-share, marketing mix

Question 11

Business analysis

Answer 11

review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives

Question 12

Product development

Answer 12

developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering

Question 13

test marketing

Answer 13

the product and its proposed marketing program are tested in realistic market settings

targeting and positioning strategy, advertising, distribution, pricing, branding, packaging, and budget levels are tested

Question 14

commercialisation

Answer 14

introducing a new product into the market

when/where to launch?
planned market rollout?

Question 15

team-based new product development

Answer 15

various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

Question 16

systematic new product development

Answer 16

innovation management system:
created an innovation-oriented company culture
yields large number of ideas

new product development in turbulent times:
tempted to reduce spending
may become less competitive

Question 17

product life-cycle strategies

Answer 17

the course of a product’s sales and profit over its lifetime

Question 18

product life cycle stages

Answer 18

1. product development (0 sales and increasing investment costs)
2. introduction
3. growth
4. maturity
5. decline

Question 19

introduction stage

Answer 19

1. slow sales growth
2. little or no profit
3. high distribution and promotion expenses
4. need to build awareness

Question 20

growth stage

Answer 20

1. sales increase
2. new competitors enter the market
3. profits increase
4. economies of scale
5. consumer education
6. lowering prices to attract more buyers

Question 21

maturity stage

Answer 21

1. slowdown in sales
2. many suppliers
3. substitute products
4. overcapacity leads to competition
5. increased promotion and R&D to support sales and profits

Question 22

modification strategies at the maturity stage:

Answer 22

1. modify the market
2. modify the product
3. modify the marketing mix

Question 23

decline stage

Answer 23

1. maintain product
2. harvest product
3. drop the product