marketign ch 12

When products reach the growth stage of the product life cycle, firms typically attempt to reach new customers by adjusting which product aspects?

-styles -colors -features

Sequential steps of product launch

1. Firm confirms its target market 2. Firm decides how the product will be positioned 3. Firm finalizes the remaining marketing mix variables for the new product

Product devlopment process

1. Idea Generation 2. Concept testing 3. Product Development 4. Market testing 5. product launch 6. Evaluation of results

Early Adopters make up about

13.5% of all buyers in the market

Laggards make up roughly ______ of the market

16%

Innovator make up about `

2.5% of the total market

Late majority

34% of the market

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk ______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

Diversification

_____ stage of the product lifecycle is characterized by initial losses to the firm due to its high start-up costs and low levels of sales revenue as the product begins to take off.

Early

of users representing approximately 34 percent of the population on the diffusion of innovation curve is crucial because few new products and services can be profitable until this large group buys them

Early majority

True or False: Prototypes are never crafted individually.

False

What is a key characteristic of the maturity stage

Firms defending market share

____ is the first to adopt the product while _____ adopts next

Innovator/early adopter

Which of the following traits are associated with the decline stage of the product life cycle?

Product rejuvenation efforts have failed. The product exits the market.

Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior

Test marketing

Early majority

app. 34% of the population

During ____ stage of the product life cycle, firms attempt to reach new consumers by studying their preferences and producing many different product variations.

growth

After product development, firms conduct premarket tests, which help determine

how many customers will try and then continue to use it

Ipod d was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with substantial improvements over portable CD players. This is an example of a

relative advantage

premarket test

when a company shows potential customers a product or service before they actually bring it to market.

Product lifecycle model cannot exactly identify

where a given product is in its life cycle, the model is fairly predictive of consumer needs and behaviors.