Marketing Chapter 9
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
Fads
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
Successful new product development requires effort that is...
Customer-centered Team-based Systematic
Commercialization
Introducing a new product into the market
Crowdsourcing
Inviting broad communities of people (customers, employees, independent scientists, researchers, and even the public) into the new product innovation process
Team-based new product development
New product development in which various company departments work closely together, overlapping the steps int he product development process to save time and increase effectiveness
Customer-centered new product development
New product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences
Product life cycle (PLC)
The course of a product's sales and profits over its lifetime
Product classes have...
The longest life cycles
Marketing strategy statement
(1) Describes target market, planned value proposition, sales, market-share, and profit goals (2) Outline product's planned price, distribution, and marketing budget (3) Describes the planned long-run sales, profit goals, and marketing mix strategy
Eight sequential steps of new product development
(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
PLC stages
(1) Product development (2) Introduction (3) Growth (4) Maturity (5) Decline
Style
A basic and distinctive mode of expression
Fashion
A currently accepted or popular style in a given field
Product concept
A detailed version of the new product idea stated in meaningful customer terms
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
Product froms
Have the standard PLC shape
Idea screening
Screening new product ideas to spot good ones and drop poor ones as soon as possible
PLC can be applied to...
Style, fashion, and fads
Concept testing
Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
Idea generation
The systematic search for new product ideas
Product image
The ways consumers perceive an actual or potential product