Marketing Ch 8
Terms
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- New-product development
- The development of original products, product improvements, product modifications, and new brands through the firm's own R&D efforts.
- Idea generation
- The systematic search for new-product ideas.
- Idea screening
- Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.
- Product concept
- A detailed version of the new-product idea stated in meaningful consumer terms.
- Concept testing
- Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
- Major stages in new-product development
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1 - idea generation
2 - idea screening
3 - concept development & testing
4 - marketing strategy development
5 - business analysis
6 - product development
7 - test marketing
8 - commercialization - Marketing strategy development
- Designing an initial marketing strategy for a new product based on the product concept.
- Business analysis
- A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.
- Product development
- Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product.
- Test marketing
- The stage of new-product development in which the product and marketing program are tested in more realistic market settings.
- Commercialization
- Introducin a new product into the market.
- Sequential product development
- A new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
- Simultaneous product development
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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.
(team based development) - Product life cycle (PLC)
- The course of a product's sales and profits over its lifetime. It involves 5 distinct stages: product development, introduction, growth, maturity, and decline.
- Style
- A basic and distinctive mode of expression.
- Fashion
- A current accepted or popular style in a given field.
- Fads
- A fashion that enters quickly, is adopted with great zeal, peaks early, and declines very quickly.
- Introduction stage
- PLC stage in which the new product is first distributed and made available for purchase.
- Growth stage
- PLC stage in which a product's sales start climbing quickly.
- Maturity stage
- PLC stage in which sales growth slows or levels off.
- Decline stage
- PLC stage in which a product's sales decline.