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49 Cards in this Set
- Front
- Back
Chapter 11 Opening Story |
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Product Mix |
All of the product lines a company offers |
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Product planning |
outlines the focus given to a core businesses, market development, product development, and diversification |
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Core business focus |
Marketing of existing products in existing market segments example is Nikon |
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Market development |
Existing products are offered to new segments example is INC |
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Product development |
Companies make new products for existing market segments example is pizza hut |
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Line extension |
new product closely related to others in the line example is Dr. Pepper |
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Diversification |
when new products are introduced into new market segments example is Nintendo, iphone, ipad |
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continuous innovation |
minor change to a familiar product example is Adobe |
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Dynamically continuous |
familiar product with additional features and benefits that require users to alter some aspect of their behavior. example is ABS |
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Discontinuous innovation |
Entire new product with new functions example is laptops |
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Relative advantage, compatibility, complexity, trialability, and observability |
Factors influencing consumer acceptance of new product s(5) |
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relative advantage |
amount of perceived superiority the new product has in comparison to existing ones example is Apple |
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compatibility |
how easily does it fit into the consumers current thinking or system |
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Trialability |
ease which potential users can test a new product at little or not cost |
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Observability |
a consumer can obtain full appreciation for a products features by watching someone else use it example is apple headphones |
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Idea generation |
gathering of suggestions for new products from a number of sources using a range of formal and informal methods |
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Technology analysis |
forecasts the speed and applicability of advances |
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idea screening |
identifying the new product ideas that have the most potential to succeed |
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product concept |
a detailed version of the product idea stated in written descriptions, pictures and specifications |
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concept testing |
testing a new product concept with target consumers, distributors, and retailers who provide input regarding the products potential |
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marketing strategy development |
creating an initial marketing strategy for a new product based on the product concept |
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Business Analysis |
Assessment of the attractiveness of the product from a sales, cost, profit, and cash flow standpoint |
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Prototype |
Working model of the product |
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Test market |
small geographical area with characteristics similar to the total market |
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Controlled test market |
uses consumer panels or other technique to attempt to gain the same type of info from real test markets. This is usually less expensive |
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Simulated product test |
experiment in artificial conditions |
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Commercialization |
introduces the product to the market |
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Simultaneous new product development |
when people from a number of functional areas work together |
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Sequential new product development |
when passing responsibility from one function to the next |
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Downsizing |
Several product lines are brought under a single management team or product offerings are reduced to those that generate strong and increasing revenues |
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De-layering |
The number of personnel and positions between top executives and those who manage market activities is reduced |
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Product manager |
oversees one or several products targeted at all market segments |
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market manager |
responsible for one or several similar product lines targeted at defined market areas. |
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New product development |
Organizational unity responsible for identifying product ideas and preparing them for commercialization. |
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New product committee |
key functional personnel who are brought together from time to time to develop new products |
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venture team |
A group formed for a set period to accomplish a set objective. Select people from various areas of the company |
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Adoption process definition |
the steps an individual consumer goes through in making a product choice |
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Diffusion process |
the spread of innovations from one group of consumers to another over time |
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Speed and responsiveness |
What is essential in gaining a competitive edge? |
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Idea generation Idea screening concept development market strategy development business analysis prototype product development test marketing commercialization |
8 steps new product development process |
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Timely Sacrifice surprises Impractical for some products Expensive |
Drawback to test markets (4) |
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Downsizing De-layering fewer functional silos |
3 Organizational Trends |
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Intro growth maturity decline |
Product life cycle stages |
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sell new market segments stimulate more frequent use Encourage use per occasion promote more varied use |
Common ways to extend product life cycle(4) |
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Knowledge persuasion decision implementation confirmation |
Adoption process steps |
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innovators Early adopters early majority late adopters laggards |
Consumer types (5) |
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product development |
What stage is prototype built in? |
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Maturity |
In what stage of the product life cycle is the marketing objective to hold market share profitability? |