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16 Cards in this Set
- Front
- Back
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Line extension
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Development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs
-may focus on a different market segment or be an attempt to increase sales within same market |
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Product Modification
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- Changing one or more characteristic of a product
- original product does not remain in the line. |
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Quality modifications
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Changes relating to a product's dependability and durability
enhancement of an experience |
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Functional modifications
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changes affecting a product's versatility, effectiveness, convenience, or safety
usually require redesign of product |
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Aesthetic modifications
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changes relating to the sensory appeal of a product
altering its taste, texture, sound, smell, or appearance. drawback - value determined subjectively |
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New-product development (7 Phase process)
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1. Idea generation
2. Screening 3. Concept testing 4. Business analysis 5. Product development 6. Test marketing 7. Commercialization |
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Idea generation
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seeking product ideas to achieve organizational objectives
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Screening
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selecting the ideas with the greatest potential for further review
product ideas are analyzed to see whether they match org's objectives |
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Concept testing
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seeking a sample of potential buyers' responses to a product idea
presented through a written or oral description low-cost procedure |
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Business analysis
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evaluating the potential impact of a product idea on the firm's sales, costs, and profits
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Product development
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determining if producing a product is technically feasible and cost effective
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Test marketing
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a limited introduction of a product in geographic areas chosen to represent the intended market
lessens risk of product failure |
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Disadvantages of Test Marketing
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1. Expensive
2. Competitors may interfere 3. Competitors may copy product |
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Commercialization
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refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product
marketers must also make decisions about warranties, repairs, and replacement parts |
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Roll-out
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product is introduced instages, starting in one set of geographic areas and gradually expanding.
could take years reduces the risks of introducing a new product. smaller losses if product fails |
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Product differentiation
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creating and designing products so that customers perceive them as different from competing products.
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