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42 Cards in this Set

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buying of a whole company, a patent, or a license to produce someone else's product
aquisition
development of original products, product improvements, product modifications, and new brands developed from the firm's own research and development
new product development
8 steps to the new product development process IICMBPTC
idea generation, idea screening, concept development, marketing strategy, business analysis, product development, test marketing, commercialization
2 sources for new product ideas in product generation
internal- r&d, intrapreneurial, External- customer, competitors, distributors, suppliers
during the idea screening, what are the 3 questions to be answered?
RRW screening framework, is it real, can we win, is it worth doing
3 pieces to concept development
product idea, product concept, and concept testing
idea for a possible product
product idea,
detailed version of the idea stated in meaningful consumer terms
product concept
testing new product concepts with groups of target consumers
concept testing
in the marketing strategy development section, what is developed? 3 pieces
marketing strategy statement- description of the target market and value proposition, price distribution and budget, and long run sales and profit goals
during the business analysis, what is decided?
to go or no
the creation and testing of one or more physical versions by the R&D or engineering departments
product developments
During the test marketing stage you will test the _______ and the _______ ______ ______ before full introduction
product, entire marketing program
3 types of test markets
standard test markets, controlled test markets, and simulated test markets
a full marketing campaign in a small representative market
standard test markets
panels of stores agree to carry new products for a fee; less expensive and faster than standard markets
controlled test markets
firm creates a shooping environment that includes the new product and competing products
simulated test markets
3 advantages and 1 disadvantage to a simulated test market
less expensive, faster, restrict competitors access. and its fake
What test market do you use for a new product with large investment, and uncertainty about the product?
standard test market
what test market do you use for a simple line extension, copy of a competitors product, or low cost of introduction
controlled test markets
3 things to consider when in the commercialization process
when to launch, where to launch, rollout plan
3 requirements for successful new-product development
customer centered, team based, and systematic
Whats the old school approach to managing new product development? benefits?
squential new product development- departments work individually to complete each stage of the process. increased control but slow
Newer approach to managing product development?
team-based new-product development- company departments work closely together in cross functional teams, overlapping in the product development process
New product development should be 2 things?
holistic and systematic
describe the product lifestyle 5 stages, PIGMD
product development- zero sales, introduction- slow sales growth, growth- rapid acceptance, maturity-slower growth, and decline- sales fall
3 special product styles
style- M shaped, Fashion- One hump, Fad- temporary periods of unusually high sales
3 things that happen in the growth stage
new competitors enter the market, prices stay constant, and cost of promotion decrease
3 things that happen in maturity stage
slowdown in sales, prices fall, weak competitors leave
what happens in the decline stage
technology changes, increased competition, and changing consumer taste
the amount of money charged for a product or service
price
understand how much value consumers place on the benefits they receive from the product and set a price that captures that value
basic idea
setting price based on buyers' preceptions of value rather than on the seller's cost
Value- based pricing
setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk
cost based pricing
costs that do not vary with production or sales level
fixed costs
the sum of the fixed and variable costs for any given level of production
total costs
costs that vary directly with the level of production
variable costs
setting price to break even on the costs of making and marketing a product, or setting price to make a target profit
break even pricing
the drop in the average per-unit production cost that comes with accumulated production experience
experience curve
a measure of the sensitivity of demand to changes in price
price elasticity
a curve that shows the number of units the market will buy in a given time period, at different prices that might be charged
demand curve
pricing that starts with a ideal selling price, then targets costs that will ensure that the price is met
target costing