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46 Cards in this Set
- Front
- Back
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Example of a new to the world product |
Cronuts |
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Example of a new product line |
music |
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example of addition to a product line |
decaffeinated ground coffee |
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example of improvements or revision to existing products |
instant coffee |
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example of repositioned products |
Seattle's Best |
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Example of lower'priced products |
Seattle's Best |
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What is the actual first stage of product life cycle? |
Product development |
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long-period of time |
style |
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current style |
fashion |
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comes in quickly and leaves quickly |
fad |
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What are the six categories of new products? |
new-to-the-world products new product lines additions to existing product lines improvements or revisions of existing products repositioned products lower priced products |
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create an entirely new market |
new-to-the-world products |
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What is another name for new-to-the-world products? |
discontinuous innovation |
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allow to enter an established market |
new product lines |
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includes new products that supplement a firm's established line |
additions to existing product lines |
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new and improved product may be significantly or only slightly changed |
improvements or revisions of existing products |
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existing products targeted at new markets or market segments, or ones repositioned to change the current market's perception of the product or company which may be done to boost declining sales |
repositioned products |
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products that provide performance similar to competing brands at a lower price |
lower-priced products |
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The firm has concluded that the companies most likely to succeed in developing and introducing new products are those that take the following actions (4) |
Make the long-term commitment Use a company-specific approach, driven by corporate objectives and strategies Capitalize on experience to achieve Establish an environment |
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links the new product development process with the objectives of the marketing development, the business unit, and the corporation |
new-product strategy |
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New product ideas come from many sources (7) |
customers employees distributors competitors research and development consultants other experts |
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the two methods considered most useful |
brainstorming and focus group exercises |
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to get a group to think of unlimited ways to vary a product or solve a problem |
brain storming |
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What is the objective of a focus group? |
to stimulate insightful comments through group interaction |
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eliminates ideas that are inconsistent with the organization's new product strategy or are obviously inappropriate for some other reason |
screening |
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evaluates a new product idea, usually before any prototype has been created |
concept test |
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Concept tests are considered... |
fairly good predictors of success for line extensions |
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where preliminary figures for demand, cost, sales, and profitability are calculated |
business analysis |
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Five points for development |
may develop a prototype of the product sketching a marketing strategy packaging, branding, labeling promotion, price, and distribution strategies the feasibility of manufacturing |
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With simultaneous product development, all relevant functional and outside suppliers... |
participate in all stages of the development process |
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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 |
test marketing |
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What are the three high costs of test marketing? |
frequently takes one year or longer costs can exceed 1 million test marketing exposes the new product and its marketing mix to competitors |
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two alternatives to test marketing |
scanner-based research simulated laboratory market testing |
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Seven Points to Commercialization |
ordering production materials production building inventories shipping and distribution training the sales force announcing trade advertising to customers |
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the process by which the adoption of an innovation spreads |
diffusion |
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Five categories of adopters participate in the diffusion process |
innovators early adaptors early majority late majority laggards |
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Five product characteristics can be used to predict and explain the rate of acceptance and diffusion of a new product |
complexity compatibility relative advantage observability trialability |
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Two types of communication aid the diffusion process: |
word of mouth communication communication directly from the marketer to potential adopters |
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a useful marketing management diagnostic tool and a general guide for marketing planning in various life cycle stages |
product life cycle |
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high failure rate, little competition, frequent product modification, limited distribution, high marketing costs |
introductory stage |
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sales typically grow at an increasing rate, many competitors enter the market |
growth stage |
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What is a major key in the growth stage? |
distribution |
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sales increase at a decreasing rate |
maturity stage |
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Four points for the maturity stage |
market approaches saturation product lines are lengthened marginal competitors start dropping out |
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a long run drop in sales signals the the beginning of the... |
decline stage |
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Two points for the decline stage |
large inventories of unsold items eliminate all nonessential marketing expenses |
