Chapter 8: New Product Development and Product Life-Cycle Strategies

Define 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

Define Fad

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

Define Commercialization

Introducing a new product into the market.

Define Crowd-sourcing

Inviting broad communities of people -customers, employees, independent scientists and researchers, and even the public at large- into the new product innovation process.

Define Team-Based New Product Development

New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness.

Define Customer-Centered New Product Development

New product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.

Define Product Life Cycle (PLC)

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

Define New Product Development

The development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts.

Define Style

A basic and distinctive mode of expression; Once a style is invented, it may last for generations, passing in and out of vogue. A style has a cycle showing several periods of renewed interests.

Define Fashion

A currently accepted or popular style in a given field; Fashions tend to grow slowly, remain popular for a while, and then decline slowly.

Define Product Concept

A detailed version of the new product idea stated in meaningful consumer terms

Define Marketing Strategy Development

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

Define Product Development

Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.

Give an example of a product class, a product form, and a brand.

Product class = Gasoline-powered automobiles Product form = SUVs Brand = the Ford Escape (Pg. 251)

Define Idea Screening

Screening new product ideas to spot good ones and drop poor ones as soon as possible.

What are the five distinct stages of the PLC?

Stage 1: Product Development Stage 2: Introduction Stage 3: Growth Stage 4: Maturity Stage 5: Decline (Pg. 251)

What are the eight major steps in the customer-driven new product development process?

Step 1: Idea Generation Step 2: Idea Screening Step 3: Concept Development and testing Step 4: Marketing Strategy Development Step 5: Business Analysis Step 6: Product Development Step 7: Test Marketing Step 8: Commercialization (Pg. 239)

Define Concept Testing

Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

Define Introduction Stage

The PLC stage in which a new product is first distributed and made available for purchase.

Define Decline Stage

The PLC stage in which a product's sales fade away.

Define Maturity Stage

The PLC stage in which a product's sales growth slows or levels off.

Define Growth Stage

The PLC stage in which a product's sales start climbing quickly.

Define Test Marketing

The stage of new product development in which the product and its proposed marketing program are tested in realistic market settings.

Define Idea Generation

The systematic search for new product ideas