Chapter 9

Question 1

New product development

Answer 1

This refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development.

Question 2

Acquisition

Answer 2

This refers to the buying of a whole company, a patent, or a license to produce someone else’s product.

Question 3

Idea generation

Answer 3

This is the systematic search for new product ideas.

Question 4

Internal sources

Answer 4

This refers to the company’s own formal research and development, management and staff, and intrapreneurial programs.

Question 5

External sources

Answer 5

This refers to sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms.

Question 6

Crowdsourcing

Answer 6

This involves inviting broad communities of people into the new product innovation process.

Question 7

Idea screening

Answer 7

Screening new product ideas to spot good ones and drop poor ones as soon as possible.

Question 8

Product concept

Answer 8

A detailed new product idea stated in meaningful consumer term.

Question 9

Concept testing

Answer 9

Testing new products with a group of target consumers to find out if the concept have strong consumer appeal.

Question 10

Marketing strategy development

Answer 10

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

Question 11

Marketing strategy statement

Answer 11

This consists of:
Target market description
Value proposition planned
Sales, market-share, and marketing mix

Question 12

Business analysis

Answer 12

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

Question 13

Product development

Answer 13

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

Question 14

Test marketing

Answer 14

This is the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings.

Question 15

Commercialization

Answer 15

This involves introducing a new product into the market. When to launch?

Question 16

Customer-centred new product development

Answer 16

This focuses on finding new ways to solve customer problems and creating more customer-satisfying experiences.

Question 17

Team-based new product development

Answer 17

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.

Question 18

Product life cycle (PLC)

Answer 18

The course of a product´s sales and profits over its lifetime.

Product development
Introduction
Growth
Maturity 
Decline

Question 19

Style

Answer 19

A basic and distinctive mode of expression.

Question 20

Fashion

Answer 20

A currently accepted or popular style in a given field.

Question 21

Fad

Answer 21

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.