MT1 - Chapter 9 Vocab

Question 1

2 major challenges of product life cycle

Answer 1

new product development

product life cycle strategies

Question 2

acquisition

Answer 2

buying a whole company, patent or license to produce someone else’s product

Question 3

new product development

Answer 3

development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts

Question 4

8 steps of new product development process

Answer 4

idea generation
idea screening
concept development and testing
marketing strategy development
business analysis
product development
test marketing
commercialization

Question 5

idea generation

Answer 5

systematic search for new product ideas

Question 6

major sources of idea generation (4)

Answer 6

internal sources (R&D)
customers
competitors
suppliers and distributors

Question 7

intrapreneurship

Answer 7

encourage employees to develop new product ideas

Question 8

crowdsourcing

Answer 8

inviting broad communities of people (customers, employees, independent scientists and researchers, and even the public at large) into the new product innovation process

Question 9

idea screening

Answer 9

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

Question 10

RWW idea screening approach

Answer 10

is it real? (need, product concept)
can we win? (sustainable competitive advantage, resources)
is it worth doing? (company fit, profit potential)

Question 11

product concept

Answer 11

detailed version of the new product idea stated in meaningful consumer terms

Question 12

product idea

Answer 12

idea for a possible product that the company can see itself offering to the market

Question 13

product image

Answer 13

way consumers perceive an actual or potential product

Question 14

concept testing

Answer 14

testing new product concepts with a group of target consumers to find out if the concepts have a strong consumer appeal

Question 15

marketing strategy development

Answer 15

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

Question 16

marketing strategy statement

Answer 16

describes the target market, planned value proposition; sales, market share and profit goals for first few years
outlines product’s planned price, distribution, marketing budget
describes planned long run sales, profit goals, marketing mix strategy

Question 17

business analysis

Answer 17

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

Question 18

product development

Answer 18

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

Question 19

test marketing

Answer 19

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

Question 20

controlled test markets

Answer 20

new products and tactics are tested among controlled panels of shoppers and stores

Question 21

simulated test markets

Answer 21

researchers measure consumer responses to new products and marketing tactics in laboratory stores or simulated online marketing environments

Question 22

commercialization

Answer 22

introducing a new product into the market

company must decide on timing and where to launch

Question 23

customer centered new product development

Answer 23

new product development that focuses on finding new ways to solve customer problems and create more customer satisfying experiences

Question 24

successful new product development should be (3 parts)

Answer 24

customer centered
team based
systematic effort

Question 25

sequential product development approach

Answer 25

one company department works individually to complete its stage of the process before passing the new product along to the next department and stage

Question 26

team based new product development

Answer 26

new product development in which various company departments work closely together, overlapping the steps in the product development process in order to save time and increase effectiveness

Question 27

innovation management system

Answer 27

collects, reviews, evaluates, and manages new product ideas yields larger number of ideas helps create innovation oriented company culture

Question 28

product life cycle PLC

Answer 28

course of a product's sales and profits over its lifetime

Question 29

steps of PLC (5)

Answer 29

``` product development introduction growth maturity decline ```

Question 30

fashion

Answer 30

currently accepted or popular style in a given field

Question 31

fads

Answer 31

temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

Question 32

style

Answer 32

basic and distinctive mode of expression

Question 33

introduction stage

Answer 33

PLC stage in which a new product is first distributed and made available for purchase

Question 34

growth stage

Answer 34

PLC stage in which a product's sales start climbing quickly

Question 35

maturity stage

Answer 35

PLC stage in which a product's sales growth slows or levels off

Question 36

modifying the market

Answer 36

(PLC maturity) company tries to increase consumption by finding new users and new market segments for its brands

Question 37

modifying the product

Answer 37

(PLC maturity) changing characteristics such as quality, features, style, packaging, or tech platforms to retain current users or attract new ones

Question 38

modifying the marketing mix

Answer 38

(PLC maturity) improving sales by changing one or more of the marketing mix elements

Question 39

decline stage

Answer 39

PLC stage in which a product's sales fade away | management may decide to maintain, harvest, or drop product

Question 40

product steward

Answer 40

protect consumers from harm and the company from liability by proactively ferreting out potential product problems