BNAD 303 ch 12

during test marketing, the potential elements of the marketing mix that may be used include:

-advertising -coupons

what are some characteristics of early adopters?

-are less risk seeking than innovators -tend to be opinion leaders of particular product categories

innovators are as important to firms as they are to other consumers in that they:

-are often experts who provide initial review -are essentially the testers for a product/service

what are 7 different ways to source ideas?

-internal R and D -R and D consortia -licensing -brainstorming -outsourcing -competitors products -customer input

what are the sectors of product life cycle?

-intro -growth -maturity -decline

product development or product design entails a process of balancing which types of considerations?

-marketing -engineering -manufacturing

burger king launched the whopper bar serving beer and burgers in a test market in miami. which of the following would have been elements of a good plan for this test market?

-offering the complete menu planned for the full launch -running the tv ads planned for the full launch

Which products were considered pioneers at the time it was introduced?

-pampers disposable diapers in early 1960s -amana's microwave oven in 1967

what are the 4 factors that enhance diffusion of a good?

-relative adaptability -compatibility -observability -complexity and triability

concept testing can be as simple as a brief written description of the product that might also include:

-visual images -customer needs it satisfies

what are the 5 reasons firms innovate?

1. changing customer needs 2. market saturation 3. managing risk through diversification 4. fashion cycles 5. improving business relations

what are the 6 steps of the product development process?

1. idea generation 2. concept testing 3. product development 4. market testing 5. product launch 6. evaluation of results

laggards make up roughly ______ of the market

16%

while new products can become huge success stories, they have a high failure rate at

95%

trialability and ___________ refer to how complicated a product is and how easy or hard it is to try

complexity

__________ testing is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions

concept

If the _______ buying group is relatively small, the number of people who ultimately adopt the innovation likely will also be small.

early adopters

_________________ are the category of consumers after innovators

early adopters

In managing its product portfolio, 3M demands that a specific percentage of its yearly sales come from new products introduced within the previous few years to better withstand external shocks and

manage risk through diversification

People who get Botox treatments consider it to be a private matter; therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process.

observability

a _____________ test is when a company shows potential customers the marketing mix variables and then are surveyed if they would buy/use the product again

premarket

__________________________ deals with perception among consumers that a product is better than its substitutes

relative advantage

licensing typically occurs most frequently with products that are _______ and _________ and have complex patents and copyrights

scientific; technological

whats an advantage of brainstorming for new products?

the ideas that get the most votes go to the next stage