Developing and Managing Products Flashcards
New products are important to (3)
sustain growth, increase revenues and profits, and replace obsolete items
a product new to the world, the market, the producer, the seller, or some combination of these
new product
a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
new-product strategy
a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
product development
the process of getting a group to think of unlimited ways to vary a product or solve a problem
brainstorming
the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason
screening
a test to evaluate a new product idea, usually before any prototype has been created
concept test
the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated
business analysis
the stage in the product development process in which a prototype is developed and a marketing strategy is outlined
development
a team-oriented approach to new-product development
simultaneous product development
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
test marketing
the presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market
simulated (laboratory) market testing
the decision to market a product
commercialization
a product perceived as new by a potential adopter
innovation
the process by which the adoption of an innovation spreads
diffusion
five product characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product
complexity compatibility relative advantage observability trialability
a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
product life cycle (PLC)
all brands that satisfy a particular type of need
product category
the full-scale launch of a new product into the marketplace
introductory stage
the second stage of the product life cycle when sale typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy
growth stage
a period during which sale increase at a decreasing stage
maturity stage
a long-run drop in sales
decline stage
Five categories of adopters that participate in the diffusion process
Innovators Early adapters Early majority Late majority Laggards
