Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
41 Cards in this Set
- Front
- Back
refers to the buying of a whole company, a patent, or a license to produce someone else’s product |
Acquisition |
|
refers to original products, product improvements, product modifications, and new brands through the firm’s own product development efforts |
New product development |
|
Major Stages in New-Product Development |
Idea generation, idea screening, concept development and testing, marketing strategy development business analysis, product development, test marketing, commercialization |
|
The systematic search for new-product ideas |
Idea generation |
|
Sources of new product ideas |
Internal and external sources |
|
refer to the company’s own formal research and development, management and staff |
Internal sources |
|
refer to sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms |
External sources |
|
Inviting broad communities of people—customers, employees, independentscientists and researchers, and even the public at large—into the new-product innovation process |
Crowdsourcing |
|
Screening new-product ideas to support good ideas and stop the poor ones as soon as possible |
Idea screening |
|
RWW screening framework |
•Is it real? •Can we win? •Is it worth doing? |
|
an idea for possible product that the company can see itself offering to the market |
Product idea |
|
a detailed version of the idea stated in meaningful consumer terms |
Product concept |
|
the way consumers perceive an actual or potential product |
Product image |
|
refers to testing new-product concepts with groups of target consumers |
Concept testing |
|
designing an initial marketing strategy for a new product based on the product concept |
Marketing strategy development |
|
It includes Description of the target market, Value proposition, and Sales and profit goals |
Marketing strategy statement |
|
involves a review of the sales, costs, and profit projections to find out whether they satisfy the company’s objectives |
Business analysis |
|
•Involves the creation and testing of one or more physical versions by the R&D or engineering departments•Requires an increase in investment •Shows whether the product idea can be turned into a workable product. |
Product development |
|
the stage of new-product development in which the product and its proposed marketing program are tested in realistic market settings |
Test marketing |
|
Provides the marketer with experience in testing the product and entire marketing program before full introduction |
Test marketing |
|
Types of test markets |
•Standard test markets •Controlled test markets •Simulated test markets |
|
introducing a new product into the market |
Commercialization |
|
new product development that focuses on finding new ways to solve customer problems and create more customer satisfying experience |
Customer- centered new product development |
|
company departments work closely together individually to complete each stage of the process before passing it along to the next department or stage.Increased control in risky or complex projects but may be slow |
Sequential new- product development |
|
an approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness |
Team- based new- product development |
|
Product life cycle |
•Product development •Introduction •Growth •Maturity •Decline |
|
Sales are zero and investment costs mount |
Product development |
|
Slow sales growth and profits are nonexistent |
Introduction |
|
Rapid market acceptance and increasing profits |
Growth |
|
Slowdown in sales growth and profits level off or decline |
Maturity |
|
Sales fall off and profits drop |
Decline |
|
a basic and distinctive mode of expression |
Style |
|
a currently accepted popular style in a given field |
Fashion |
|
are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity |
Fads |
|
The PLC stage in which a new product is first distributed and made available for purchase. •Slow sales growth •Little or no profit •High distribution and promotion expense |
Introduction stage |
|
The PLC stage in which a product’s sales start climbing quickly. •Sales increase•New competitors enter the market•Price stability or decline to increase volume•Consumer education •Profits increase•Promotion and manufacturing costs gain economies of scale |
Growth stage |
|
The PLC stage in which product’s sales growth slows or levels off. •Slowdown in sales•Many suppliers•Substitute products•Overcapacity leads to competition•Increased promotion and R&D to support sales and profits |
Maturity stage |
|
Maturity Stage Modifying Strategies |
•Market modifying •Product modifying •Marketing mix modifying |
|
The PLC stage in which a product’s sales decline. •Maintain the product •Harvest the product •Drop the product |
Decline stage |
|
Public policy and regulations regarding developing and dropping products, patents, quality, and safety |
Product decision and social responsibility |
|
•Determining what products and services to introduce in which countries•Standardization versus customization•Packaging and labeling •Customs, values, laws |
International Product and Service Marketing—Challenges |