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25 Cards in this Set
- Front
- Back
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2 Ways Companies Find and Develop New Product Ideas
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1. Acquisition
2. New-product Development |
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Acquisition
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buying of a whole company, a patent, or a license to produce someone else’s product
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New-product Development
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original products, product improvements, product modifications, and new brands developed from the firm’s own research and development
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8 Major Stages in New-product Development
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1. Idea Generation
2. Idea Screening 3. Concept Development and Testing 4. Marketing Strategy Development 5. Business Analysis 6. Product Development 7. Test Marketing 8. Commercialization |
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5 Stages of Product Life Cycle
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the course that a product’s sales and profits take over its lifetime:
1. Product Development 2. Introduction 3. Growth 4. Maturity 5. Decline |
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PLC (Product Life Cycle) is used for:
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1. Product Classes: have the longest life cycles with sales of many product classes in the mature stage for a long time
2. Product Forms: have the standard PLC shape—introduction-rapid growth-maturity-decline 3. Brands: have changing PLCs due to competitive threats |
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Product Development
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turning product concept in to physical product to ensure it can be workable product
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Introduction
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when new product is first launched;
takes time, slow sales, little/no profit, high distribution/promo expense |
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Growth
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when new product satisfies market;
new competitors enter market, price stability or decline, consumer ed, profits up, product quality up, new features |
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Maturity
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long-lasting stage of product that has gained customer respect;
sales slowdown, many suppliers, sub products, increase promo and r&d |
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Decline
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sales decline or level off for extended time, creates weak product;
maintain product, harvest product, drop product |
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Business Analysis
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review of sales, costs, and profit projections to find if they satisfy company's objectives
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Commercialization
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introducing new product into market
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Concept Testing
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refers to new-product concepts with groups of target consumers
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Customer-centered New-product Development
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solving customers problems
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Fad
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temporary period of unusually high sales driven by consumer enthusiasm
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Fashion
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currently accepted or popular style in given field
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Style
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basic and distinctive mode of expression
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Idea Generation
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systematic search for new product ideas
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Idea Screening
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spot good ideas and drop poor ones asap
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Marketing Strategy Development
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designing initial marketing strategy for new product based on product concept
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New-product Development
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development of original products, product improvements, modifications, and new brands through firm's R&D efforts
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Product Concept
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detailed version of the new-product idea stated in meaningful consumer terms
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team-based new-product development
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various company departments work closely together, overlapping steps in process to save time/increase effectiveness
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Test Marketing
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product and marketing program are introduced into more realistic market settings (practice before real intro)
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