New Product Management - Exam 3

Features

- Technical people usually come up with this based on technologies they have - deprive the firm's most creative and inventive people of the freedom to use their skills

Function

- This attribute sometimes causes confusion - often called performance specs, or performance parameters, or design parameters

Tademark

This identifies a product is usually a word or symbol "just do it"

Informal selling

_________________ is a controlled sale market testing method that involves real purchasing under some real competitive environment.

Misrepresentation

rarest of product liability ex. helmet manufacturer made helmets for motorcyclists; cop buys one but helmet was not useable for safety on the road

sustainable design

refers to either new product design or delivery that reduces negative impacts on the environment

Deal-selectives

rotators whose movement is determined by presence of deals

Test Marketing

sell the new product in two or more representative cities before distributing it everywhere use to fine-tune their plans and learn how best to do so - very expensive

Strict liability

seller is responsible for not putting a defective product on the market Defense: Buyer knew, so assumed risk. unforeseeable misuse, product not defective.

Near Brand Usage

slightly different brand names Tony hilfiger, kuma running shoes, sunbucks coffee

Toyota's Oobeya Room

- big room to accommodate all team members for a new product project - Team leader sets targets and controls meeting -Total meeting is under an hour Team members all make short presentation - This happens during Product Protocol ch.12

Benefits

- most desirable form for a protocol to use - places very few constraints on the R&D staff

Project Matrix

- most heavyweight option Team people are project people first and functional people second may drive the project against department's best wishes

What are the other Product Protocol names?

- product requirements -product definition -deliverables

Why have a product protocol?

- to determine what marketing and R&D groups need to do for their work -set boundaries on development process and to be managed (what needs to be done,when, why, how, by whom) -top success factors between winning and losing projects

Scanner Market testing

-Audit sales from grocery stores with scanner systems - over a few markets or national systems (minimarket testing)

Quality Function Deployment (QFD)

-invented by the Japanese automobile industry leads to reduced design time and costs, and more efficient communication between project team members from functional areas.

Negligence (product liability)

-manufacturer let the product be injurious "failure to warn" Defense: product not defective, misused product

Options for permanence

1. "in to stay" no thought is given to get out 2. "in to stay if we meet our goals" pull out if competitive capability is inadequate. 3. "Temporary" The product is only in the marketplace for a few months. Ex. baskin robbins throws in different ice cream flavors kelloggs fruit snacks makes different characters based on the new kids movie

Rotators

2-3 product sets mover around in that set, and don't use deals

Functional Matrix

A specific team with people from various departments Project still close to the current business - team members think like functional specialists - departments call the shots

Rollout

A test marketing method - aka limited marketing testing several cities or states (25% of market) choose a hard area to sell in to learn the pitfalls and figure out success

three types of product attributes are ___________

Benefits, features, functions

Balanced Matrix

Both functional and project views are critical - may lead to indecision and delay - many firms are making it work successfully

Product positioning statement

Buyers in the target market should buy our product rather than others being offered and used because: __________

Wildcatting

During the Product protocol process firms sometimes bet on a technology that hasn't yet been shown to work - none of these is appropriate for a protocol

total quality management

The efforts of all the members in an organization directed to ensure that quality in the production of goods and services is achieved is known as ___________

organizational structure options

The further across the figure, the greater is the commitment of company personnel to the new product project.

single-source systems

Infoscan and it's competitors are known as __________ ( purchases, household demographics, and media behavior, and response to promotions and prices)

Product Positioning

It is the attempt to create a favorable image in the minds of consumers or customers in relation to competing products.

Announcement

Kick's off the beachhead phase

Cash-to cash

Sometimes called time-to-break-even metric simply the time between the initial cash investment and the time of payment for the finished product.

Concurrent System

System in which all the players begin working, doing as much as they can at any time as the project rolls along.

micromarket

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.

Beta Testing

Test, done at the customer site - determines if the product works and is free of "bugs" computer firms seem to be key leaders

alpha testing

Test, done in house

trade dress

The image and overall appearance ("look and feel") of a product that is protected by trademark law.

attribute

a feature, function, or benefit - traditional positioning devices and are most popular

brand report card

a list of characteristics shared by the strongest brands worldwide that can be used to assess a brand's strengths and weaknesses

Speculative Sale

a method of sales that gets a potential user to make an expression of commitment resembling a sale without actually laying out money. - this method asks them if they would buy it -very little risk

skim

a price clearly above the market, but appropriate to a differentiated product, non-threatening to competition, and with room for some price manipulations

Replacement Demand

a product improvement or upgrade (new computer chip, new compact car)

Protocol

a signed agreement between negotiating parties

Cross-functional team

a team composed of employees from different functional areas of the organization

Premium

a very high price, intended to stay that way, with clear product differentiation

Early majority

after the early adopters __________ are the next people to adopt the product (30% after early adopters)

feature

an attribute ex. dog food "the one with as much protein as 10lbs of sirloin"

Tactical Launch Decisions

are marketing mix decisions such as communication and promotion, distribution, and pricing that are typically made after the strategic launch decisions and define how the strategic decisions will be implemented.

Pseudo sale (speculative and simulated test marketing

asks the customer if they would buy the product if it were actually available.

loyalists

people who buy one brand at all times, like it, and don't use deals.

Strategic Launch decisions

both strategic platform decisions that set overall tones and directions, and strategic action decisions that define to whom we are going to sell and how

Warranty

cannot have hype; written document should look pretty dry Express _________: a statement of fact about a product Implied _________: arises when product is made available for a given use It's a promise

strategic alliances

commercial agreements between transnational corporations, usually involving shared technologies, marketing networks, market research, or product development

Voice of the Customer

complete set of customer wants and needs, expressed in the customer's own language, organized the way the customer thinks about, uses, and interacts with the product... and prioritized by the customer in terms of both importance and performance.

Strategic Givens

frequently difficult or costly to change once made - determine the strategic context for the marketing plan and thus influence the tactical decisions made later

Brand Equity

getting awareness of the brand and the meaning - loyal and higher perceived quality

beachhead

heavy amount of expenditures necessary to overcome sales intertia.... Sales are increasing at a high rate

containment

deals with packaging (hold for transporting)

Selective Demand

drawing market share away from competition ex. Pepsi having coke drinkers to break their habit and try pepsi

Postponement

drives lean launch. -elaying finalization of product form and identity until late in the development process, and delaying commitment of inventory until the last possible moment.

copy strategy statement

how firm communicates deliverables to advertising & promotion people

Identity disclosure

how much the user should be told about the brand or maker identity of the product.

Lightweight team (functional)

farthest left option work done by many departments low risk and involves present line of products Project leader doesnt have as much power functional department has more power

Individual branding

firms go out of their way not to mention the company name in their brand ex. Proctor and Gamble products tide, bold, mr. clean - all P&G products

innovators

first 5 to 10% of people to adopt a new product

Lean Launch

flexible supply chain system allowing the firm to respond rapidly to sales changes - inventory is low at first, but can ramp up if necessary

Perceptual Product Positioning

involves marketers creating some perception or idea for a target market Focuses on ideas and concepts Ex. Lawyers use this: low fees or best success rate in area more likely to explain how it can better someone's life

Gamma Testing

involves thorough use & evaluation of new product by end user (ideal product test but more expensive/ time consuming than beta testing)

controlled Sale (informal selling, direct marketing, minimarketing)

mini market testing is a __ method (Direct Marketing and Informal selling)

function

most difficult and rarely used out of all the attributes "shampoo that coats your hair with a thin layer of protein"

primary demand

new to the world product ex. my key system for parents with teen drivers

early adopters (visionaries)

not the first to adopt a new product, but the next 10 to 15%

Price-driven

people who buy all major brands, always on deals

Umbrella branding

strategy with branding that the corporation puts their corporate name on everything they make. ex. kellogg's puts their name on every cereal

after a recall you should _______

strive to restore company reputation

venture

team members are pulled out of their department to work full time on project HEAVY PROJECTIZATION or HEAVYWEIGHT

monadic testing

test where the respondent tests a single product for a period time (services are usually this) simplest test most valid test

sequential monadic

test where there are back to back monadic tests with the same respondent. (staggered paired comparison) ideal test, but takes long time

triangular comparison

test with two competitive products versus one test product (or two test products versus one competitor)

Use Testing

testing the prototype under normal operating conditions

augmented product type

the core of a product is the end-user benefit, the real purpose for which the product was created.

Competitive Advantage

the firm has a marketing mix that the target market sees as better than a competitor's mix.

Full Sale (test marketing, rollout,)

the firm has decided to fully market the product, but wants to do it on a limited basis to see if everything is working right.

Projectization

the further to the right, the greater the____________ (Deals with organizational structure options)

Laggards (pragmatists)

the last people to adopt a product are called ______

Heavyweight team

the more to the right ____ the team is (high Projectization) more power for the project manager

Penetration

the price that is clearly low and designed to buy one's way into the market. little room to discount. tough to raise price later.

benefit

this attribute can be direct "saves you money" "makes you more attractive" Miller's tag line "Tastes great, less filling"

Simulated Test Market (STM)

this sales method creates a false buying situation and observes what they do. -involve 300 to 600 people cost anywhere $50,000-$300,000

meet the market

though there may be no one market price.. strategy that takes price out of the play as much as possible. It is a waste for a superior product unless the marketer has no market acceptance.

How many options are there for permanence?

three

intellectual property copying

unauthorized copying of cds and dvds

counterfeiting

unauthorized production of goods

brand piracy

unauthorized use of copy rights or patented brands ($20 rolex)

Competitive Advantage Requires that the firm does:

understand current competitors' offerings anticipate competitors' likely plans monitor effects of changes in competition REALLY understand the target customers' needs

paired comparision

use of the test product is interspersed with that of a competitive product most unrealistic test, but most sensitive.

Physical Product Positioning

using a product's physical attributes to market the product to a target market. ex. cellphone physical properties: phone's thin and shiny design.

Minimarketing

we use each store as a mini city to market

registration

when your trademark is ______________ it is kept forever.