developing a new product Flashcards
1
Q
Why do firms create new products?
A
- adapt to changing customer needs
- managing risk through diversity
- adapt to fashion cycles and trends
- avoid market saturation
2
Q
steps in new product development
A
- idea generation
- concept testing
- product development
- market testing
- product launch
- evaluation of results
3
Q
How do companies generate ideas?
A
- customer feedback
- competitor analysis
- market research
4
Q
what is concept testing?
A
presenting ideas to potential customers for feedback
5
Q
benefits of concept testing
A
- reduce risk
- customer-focused
6
Q
what is product development?
A
create prototype and test for feedback
7
Q
types of testing in product development
A
- alpha
- beta
8
Q
what is alpha testing?
A
internal by employees
9
Q
what is beta testing?
A
real-world testing by selected customers
10
Q
types of market testing
A
premarket tests
test marketing
11
Q
what is premarket test?
A
feedback and surveys
12
Q
what is test marketing?
A
mini product launch, monitor sales and feedback
13
Q
what is product launch
A
introduce product to whole market
14
Q
elements of product launch
A
- financial resources
- coordination of marketing mix
15
Q
product life cycle stages
A
- introduction
- growth
- maturity (saturation)
- decline
