Chapter 9 Flashcards
product life cycle
describes the stages a really new product idea goes through from beginning to end
market introduction
sales are low as a new idea is first introduced to a market-customers aren’t looking for the product
market growth
industry sales grow fast-but industry profits rise and then start falling
market maturity
occurs when industry ales level off and competition get together-many competitors are racing for profit
sales decline
new products replace the old-price competition from dying products becomes more vigorous
fashion
the currently accepted or popular style
fad
an idea that is fashionable only to certain groups who are enthusiastic about it
new product
one that is new in any way for the company concerned (according to FTC must be entirely new or changed in a “functionally significant or substantial respect”)
federal trade commission
the federal government agency that polices antimonopoly laws
patent
grants the inventor the ability to exclude others from making, using, offering for sales, or selling the invention
consumer product safety act
set up the consumer product safety commission to encourage safety in product design and better quality control
product liability
the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products
prototype
an early sample or model built to test a concept
product managers
(brand managers) manage specific products-often taking over the jobs formerly handled by an advertising manager
total quality management
the philosophy that everyone in the organization is concerned about quality, throughout all of the firm’s activities to better serve customer needs
