Exam 3 - Chp 11 Flashcards
New product
A product new to the world the market, the producer, the seller, or some combination of these.
New Product strategy
A plan that links the new product development process with the objectives of the marketing department, the business unit, and the corporation
Product Development
A marketing strategy that entails the creation of marketable new products, the process of converting applications for new technologies into marketable products
Brainstorming
The process of getting a group to think of unlimited ways to vary a product or solve a problem
Screening
The first filter in the product development process, which eliminate ideas that are inconsistent with the organizations new product strategy or are obviously inappropriate for some other reason
concept test
A test to evaluate a new-product idea, usually before any prototype has been created.
Business Analysis
The second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated.
Development
The stage in the product development process in which a prototype is developed and a marketing strategy is outlined.
Simultaneous Product Development
A team-oriented approach to new-product development.
Test Marketing
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
Simulated (Laboratory) Market Testing
The presentation of advertising and other promotion materials for several products, including a test product, to members of the product’s target market
Commercialization
The decision to market a product
Adopter
A consumer who was happy enough with his or her trial experience with a product to use it again.
Innovation
A product perceived as new by a potential adopter.
Diffusion
The process by which the adoption of an innovation spreads.
Product Life Cycle (PLC)
A biological metaphor that traces the stages of a product’s acceptance, from its introduction (birth) to its decline (death).
Product Category
All brands that satisfy a particular type of need.
Introductory Stage
The first stage of the product life cycle in which the full-scale launch of a new product into the marketplace occurs.
Growth Stage
The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start acquiring small pioneering firms, and profits are healthy.
Maturity Stage
The third stage of the product life cycle during which sales increase at a decreasing rate.
Decline Stage
The fourth stage of the product life cycle, characterized by a long-run drop in sales.
