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25 Cards in this Set
- Front
- Back
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What are the four objectives for introducing new products? |
1. Increase sales and profits 2. Optimize use of distribution systems 3. Reduce overall risk to company 4. Use waste materials from current products |
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What are the main key responsibilities as a product moves through a life cycle and the stage? |
1. New Product development (introduction stage) 2. Managing adoption process (growth stage) 3. Diffusion Process (growth stage) 4. Factors that influence the rate of diffusion(maturity stage) 5. Phase the product off the market(decline stage) |
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What stage is the diffusion process? |
growth stage |
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What are the steps in new product development |
1. generate new product ideas- internal and external 2. screen ideas- profit and image 3. concept testing- market research 4. business analysis- long range forecasting 5. product development- brand name, packaging, prototype 6. test market - 2-3 cities, up to one year, test marketing mix 7. commercialization- introduce product into market place |
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What must you do in concept testing during product development? |
market research |
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How do you generate new product ideas in new product development? |
internal an external resources |
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What is the business analysis part of the new product development? |
long range forecasting |
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How do you commercialize a product in the new product development stage? |
introduce product into the marketplace |
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How do you screen ideas in new product development? |
profit and image projections |
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What is the test market in new product development? |
in 2-3 cities, up to one year as a test marketing mix |
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What stage is the managing adoption process in? |
growth stage |
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What are the steps in managing adoption process during the life cycle of a product? |
1. Awareness 2. Interest 3. Evaluation 4. Trial purchase 5. Product adoption 6. Confirmation |
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How many steps are there in managing adoption process? |
six |
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What is diffusion? |
process by which the adoption of an innovation spreads |
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What stage is diffusion in the life cycle of a product? |
Growth stage |
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What are the five categories of adopter participation in the diffusion process?
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1. innovators (2.5%) 2. early adopters (13.5%) 3. early majority (34%) 4. late majority (34%) 5. laggards (16%) |
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What are innovators? |
The first 2.5% of all those who adopt the product. they are eager to to new ideas and products, almost as an obsession |
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Who are early adopters? |
The next 13.5% to adopt the product. Not the first, but adopt it early in the products life cycle. Rely more on group norms and values. |
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Who is in the early majority? |
The next 34% to adopt a product.Weigh the pros and cons before adopting the product |
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Who is in the late majority? |
The next 34% in adoption of a product. Do it because most of their other friends have adopted it. Adoption relies on pressure to conform |
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Who are laggards? |
The final 16% in product adoption. Do not rely on group norms. |
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What stage is the factors that influence the rate of diffusion in? |
Maturity |
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How do factors influence the rate of diffusion? |
1. Find new customers 2. Change marketing mix strategies 3. Improve product 4. Find new uses 5. Increase product usage 6. Planned obsolescence |
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What stage do you phase a product off the market? |
In the decline stage |
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What do you look for when deciding to phase a product off of the market? |
1. Declining sales over a period of time 2. Little or no contribution to the sale of other products 3. New technology that is replacing current products |
