Marketing Chapter 11

Front 1

New Product

Back 1

A product new to the world, the market, the producer, the seller, or some combination of these

Front 2

New-product strategy

Back 2

A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation

Front 3

Product development

Back 3

A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products

Front 4

Brainstorming

Back 4

The process of getting a group to think of unlimited ways to vary a product or solve a problem

Front 5

Screening

Back 5

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

Front 6

Concept test

Back 6

A test to evaluate a new-product idea, usually before any prototype has been created

Front 7

Business analysis

Back 7

The second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated

Front 8

Development

Back 8

The stage in the product development process in which a prototype is developed and a marketing strategy is outlined

Front 9

Simultaneous product development

Back 9

A team-oriented approach to new-product development

Front 10

Test marketing

Back 10

The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

Front 11

Simulated (laboratory) market testing

Back 11

The presentation of advertising and other promotional materials for several products, including a test product, to members of the product's target market

Front 12

Commercialization

Back 12

The decision to market a product

Front 13

Innovation

Back 13

A product perceived as new by a potential adopter

Front 14

Diffusion

Back 14

The process by which the adoption of an innovation spreads

Front 15

Product Life Cycle (PLC)

Back 15

A concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death)

Front 16

Product category

Back 16

All brands that satisfy a particular type of need

Front 17

Introductory stage

Back 17

The full-scale launch of a new product into the marketplace

Front 18

Growth stage

Back 18

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 to acquire small pioneering firms, and profits are healthy

Front 19

Maturity stage

Back 19

A period during which sales increase at a decreasing rate

Front 20

Decline stage

Back 20

A long-run drop in sales

Front 21

Innovators and their dominant characteristic

Back 21

(2.5% of total adopters) They are the first people to buy new products. They're seeking out risk and innovation.

Dominant Characteristic: Venturesome

Front 22

Early Adopters and their dominant characteristic

Back 22

(13.5% of total adopters) More of a connection to groups. Opinion leaders. Often watched to see what they buy.

Dominant Characteristic: Opinion leaders and the respect of others

Front 23

Early majority and their dominant characteristic

Back 23

(Next 34% of adopters) Weigh the pros and cons. Collect more information and rely on the group for information.

Dominant Characteristic: Deliberate in their decision making

Front 24

Late Majority and their dominant characteristic

Back 24

(Next 34% of adopters) They adopt because most of their friends have already adopted. These people are older and below average in income and education.

Dominant Characteristic: Skepticism

Front 25

Laggards and their dominant characteristic

Back 25

(Final 16% of adopters) Do not rely on group norms. They are tied to tradition and the past heavily influences their decisions.

Dominant Characteristic: Tradition