Marketing an Introduction - Ch. 8

Fad

A temporary period of unusually high sales diiven by consumer enthusiasm and immediate product or brand popularity.

Customer centered

Above all else, new-product development must be _____ _____.

External Sources

Competitors, distributors and suppliers

Commercialization

If a company goes ahead with ______, introducing the new product into the market, it will face high costs.

Growth stage

If successful, the product enters a _____ _____, which offes rapid sales growth and increasing profits.

True

In the growth stage, the firm faces a trade-off between high market share and high current profit. (true/false)

International product and services marketing

International marketers must decide how much to standardize or adapt their offerings for world markets.

Crowdsourcing, open-innovation

Many companies are now developing _______ or ______ new-product idea programs, which invite broad communities of people-customers, employees, independent scientists and researchers, and even the general public into the new-product innovation process.

Internal sources

Many new-product ideas stem from ____ _____.

Customers

Perhaps the most important sources of new-product ideas are _____ themselves.

Product Life cycle

The course of a product's sales and profits over it lifetime.

Idea screening

The first idea reducing stage, which helps spot good ideas and drop poor ones as soon as possible.

True

The key to sucessful innovation lies in a customer-focused, total-company effort: strong planning: and a systematic new product development process. (true/false)

True

The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction. (true/false)

Test marketing

The stage at which the product and its proposed marketing program are introduced into realistic market settings.

Maturity stage

the stage where the product's sales growth slows down and profits stabilize.

Style

A basic and distinctive mode of expression.

True

A company's current products face limited life spans and must be replaced by newer products. (true/false)

Fashion

A currently accepted or popular style in a given field.

Product concept

A detailed version of the idea, stated in meaningful consumer terms, as opposed to a "product idea" (an idea for a possible product that the company can see itself offering to the market). OR a "product Image" (The way consumers perceive and actual or potential product.

Acquisition, new-product development

A firm can obtain new products in two ways. One is through _____ - by buying a whole company, a patent, or a license to produce someone else's product. The other is through the firm's own _____ ______ efforts.

Marketing strategy development

Designing an initial marketing strategy for a new product based on the product concept.

Product development

Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering, however it now calls for a huge jump in investment.

Decline stage

During this stage, sales and profits dwindle. The companies task during this stage is to recognize the decline and decide whether it should maintain, harvest, or drop the product.

Customer-centered new-product development

Focuses on finding new ways to solve customer problems and create more customer-satisfying experiences. It begins and ends with understanding customers and involving them in the process.

True

Successfull new product development requires a customer-centered, team based, systematic effort. (true/false)

Growth Stage

The PLC stage in which a product's sales start climbing quickly. Profits increase during this stage as promotion costs are spread over a large volume and as unit manufacturing costs decrease.

Introduction stage

The PLC state in which a new product is first destributed and made available for purchase. In this stage, compared to other stages, profits are negative or low because of the low sales and high destribution and promotion expense.

New product development process

The ___ _____ _____ _____ consists of eight steps. Starts with idea generation, than idea screening, concept development, marketing strategy development, business-analysis, product development, test marketing, and commrcialization.

Marketing strategy statement

The _____ _____ _____ consists of three parts. The first part describes the target market: the planned value proposition; and the sales, market share, and profit goals for the first few years. The second part of the statement outlines the product's planned price, distribution, and marketing budget for the first year. The third part describes the planned long-run sales, profit goals, and marketing mix strategy.

Introduction stage

The ______ ____ is marked by slow growth and low profits as the product is distributed to the market.

Product development Stage

The stage where the company finds and develops a new-product idea.

Idea generation

The systematic search for new products ideas.

Social responsible product decisions

This includes public policy issues and regulation involving acquiring or dropping products, patent protection, product quality and safety, and product warrenties.

Business analysis

This involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives.

Team-based new-product development

Under this approach, company departments work closely together in cross-functional teams, overlapping the steps in the product development process to save time and increase effectiveness. Instead of the product moving from department to department, a team is assembled that stays with the product from start to finish (Marketing, finance, design, manufactuing, and legal departments

Concept testing

_____ ______ calls for testing new-product concepts with groups of target consumers.