Chapter 7 - New Product Development And Product Life- Cycle Strategies

Front 1

refers to the buying of a whole company, a patent, or a license to produce someone else’s product

Back 1

Acquisition

Front 2

refers to original products, product improvements, product modifications, and new brands through the firm’s own product development efforts

Back 2

New product development

Front 3

Major Stages in New-Product Development

Back 3

Idea generation, idea screening, concept development and testing, marketing strategy development business analysis, product development, test marketing, commercialization

Front 4

The systematic search for new-product ideas

Back 4

Idea generation

Front 5

Sources of new product ideas

Back 5

Internal and external sources

Front 6

refer to the company’s own formal research and development, management and staff

Back 6

Internal sources

Front 7

refer to sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms

Back 7

External sources

Front 8

Inviting broad communities of people—customers, employees, independentscientists and researchers, and even the public at large—into the new-product innovation process

Back 8

Crowdsourcing

Front 9

Screening new-product ideas to support good ideas and stop the poor ones as soon as possible

Back 9

Idea screening

Front 10

RWW screening framework

Back 10

•Is it real? •Can we win? •Is it worth doing?

Front 11

an idea for possible product that the company can see itself offering to the market

Back 11

Product idea

Front 12

a detailed version of the idea stated in meaningful consumer terms

Back 12

Product concept

Front 13

the way consumers perceive an actual or potential product

Back 13

Product image

Front 14

refers to testing new-product concepts with groups of target consumers

Back 14

Concept testing

Front 15

designing an initial marketing strategy for a new product based on the product concept

Back 15

Marketing strategy development

Front 16

It includes Description of the target market, Value proposition, and Sales and profit goals

Back 16

Marketing strategy statement

Front 17

involves a review of the sales, costs, and profit projections to find out whether they satisfy the company’s objectives

Back 17

Business analysis

Front 18

•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.

Back 18

Product development

Front 19

the stage of new-product development in which the product and its proposed marketing program are tested in realistic market settings

Back 19

Test marketing

Front 20

Provides the marketer with experience in testing the product and entire marketing program before full introduction

Back 20

Test marketing

Front 21

Types of test markets

Back 21

•Standard test markets •Controlled test markets •Simulated test markets

Front 22

introducing a new product into the market

Back 22

Commercialization

Front 23

new product development that focuses on finding new ways to solve customer problems and create more customer satisfying experience

Back 23

Customer- centered new product development

Front 24

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

Back 24

Sequential new- product development

Front 25

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

Back 25

Team- based new- product development

Front 26

Product life cycle

Back 26

•Product development •Introduction •Growth •Maturity •Decline

Front 27

Sales are zero and investment costs mount

Back 27

Product development

Front 28

Slow sales growth and profits are nonexistent

Back 28

Introduction

Front 29

Rapid market acceptance and increasing profits

Back 29

Growth

Front 30

Slowdown in sales growth and profits level off or decline

Back 30

Maturity

Front 31

Sales fall off and profits drop

Back 31

Decline

Front 32

a basic and distinctive mode of expression

Back 32

Style

Front 33

a currently accepted popular style in a given field

Back 33

Fashion

Front 34

are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

Back 34

Fads

Front 35

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

Back 35

Introduction stage

Front 36

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

Back 36

Growth stage

Front 37

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

Back 37

Maturity stage

Front 38

Maturity Stage Modifying Strategies

Back 38

•Market modifying

•Product modifying

•Marketing mix modifying

Front 39

The PLC stage in which a product’s sales decline.

•Maintain the product

•Harvest the product

•Drop the product

Back 39

Decline stage

Front 40

Public policy and regulations regarding developing and dropping products, patents, quality, and safety

Back 40

Product decision and social responsibility

Front 41

•Determining what products and services to introduce in which countries•Standardization versus customization•Packaging and labeling •Customs, values, laws

Back 41

International Product and Service Marketing—Challenges