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36 Cards in this Set
- Front
- Back
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New Product
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A product new to the world, the market, the producer, the seller, or some combination of these.
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New-Product Strategy
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A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation.
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Brainstorming
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The process of getting a group to think of unlimited ways to vary a product or solve a problem.
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Screening
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The first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason.
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Concept Test
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A test to evaluate a new-product idea, usually before any prototype has been created.
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Business Analysis
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The second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated.
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Development
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The stage in the product development process in which a prototype is developed and a marketing strategy is outlined.
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Simultaneous Product Development
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A team-oriented approach to new-product development.
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Test Marketing
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The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
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Simulated (laboratory) Market Testing
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The presentation of advertising and other promotion materials for several products, including a test product, to members of the product's target market.
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Commercialization
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The decision to market a product.
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Adopter
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A consumer who was happy enough with his or her trial experience with a product to use it again.
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Innovation
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A product perceived as new by a potential adopter.
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Diffusion
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The process by which the adoption of an innovation spreads.
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Product Life Cycle (PLC)
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A concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death).
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Product Category
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All brands that satisfy a particular type of need.
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Introductory Stage
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The full-scale launch of a new product into the marketplace.
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Growth Stage
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The second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start acquiring small pioneering firms, and profits are healthy.
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Maturity Stage
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A period during which sales increase at a decreasing rate.
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Decline Stage
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A long-run drop in sales.
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Innovators
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The first 2.5% of those who adopt the product.
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Early Adopters
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The next 13.5% of those to adopt the product.
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Early Majority
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The next 34 percent to adopt the product.
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Late Majority
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The next 34 percent to adopt the product.
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Laggards
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The final 16 percent to adopt the product.
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Complexity
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The degree of difficulty involved in understanding and using a new product. The more complex the product, the slower is its diffusion.
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Compatibility
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The degree to which the new product is consistent with existing values and product knowledge, past experiences, and current needs. Incompatible products diffuse more slowly than compatible products.
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Relative Advantage
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The degree to which a product is perceived as superior to existing substitutes. Because it can store and playback thousands of songs, the iPod has a clear relative advantage over the portable CD player.
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Observability
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The degree to which the benefits or other results of using the product can be observed by others and communicated to target customers. Fro instance, fashion items and automobiles are highly visible and more observable than personal-care items.
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Trialability
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The degree to which a product can be tried on a limited basis. It is much easier to try a new toothpaste or breakfast cereal than a new automobile ro microcomputer.
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New-to-the-World (also called discontinuous innovations)
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These product create an entirely new market. New-to-the-world products represent the smallest category of products.
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New Products lines
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These products, which the firm has not previously offered, allow it to enter established markets. McDonald's test kitchen came up with a new product, using ingredients that were already in its existing menu items. They put strips of chicken, shredded cheese and lettuce with a few squirts of ranch dressing on a flour tortilla and called it a snack wrap.
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Additions to existing product lines
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The category includes new products that supplement a firms established line.
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Improvements or revisions of existing products
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The "new and improved" product may be significantly or slightly changed.
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Repositioned Products
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The are existing products targeted at new markets or market segments.
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Lower-priced products
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The category refers to products that provide performance similar to competing brands at a lower price.
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