Marketing 3501- chapter 9
product life cycle-fashion
a currently accepted or popular style in a given field. tend to grow slowly, remain popular for awhile, and then decline slowly.
product concept
a detailed version of the idea stated in meaningful consumer terms.
stimulated test markets
the firm will create a shopping environment and note how many consumers buy the new product and competing products.
Idea generation
the systematic search for new product ideas.
product development
zero sales and increasing investment costs, begins when the company finds and develops a new product idea.
Standardization decreases product design, manufacturing, and marketing costs.
Which of the following statements is true regarding standardizing products for international markets?
Test marketing can be costly and delay commercialization of the product
Which of the following statements regarding standard test marketing is correct?
Companies face a trade-off between high market share and high profits.
Which of the following statements regarding the growth stage of the product life cycle is correct?
Modify the market, product offering, or marketing mix
Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle?
Idea generation
What is the first step of the new product development process?
Understand its consumers, markets, and competitors and develop products that deliver superior value
What must companies do to create successful new products?
marketing strategy development
designing an initial marketing strategy for a new product based on the product concept
product development
developing the product concept into physical product to ensure that the product idea can be turned into a workable market offering.
Growth
A firm improves product quality and adds new product features and models. It also shifts some advertising from building product awareness to building product conviction and purchase. At which stage of the product life cycle would this be a recommended strategy?
Fad
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity is called a(n)
product development
At which stage of the new product development process is a physical product first development?
innovation can be very expensive and very risky
Which of the following statements about new product development strategy is correct?
product life cycle-style
a basic and distinctive mode of expression. may last for generations, has a cycle showing several periods of renewed interest.
Product idea
an idea for a possible product that the company can see itself offering to the market
Idea screening
identify good ideas and drop poor ideas -is it REAL? -can we WIN? -is it WORTH doing?
commercialization
involves introducing a new product. When to launch?-Where to launch?- Planned market rollout?
idea generation-crowdsourcing
involves inviting broad communities of people-customers, employees, independent scientists and researchers, and even the public at large-into the new product innovation process.
controlled test markets
panels of stores have agreed to carry new product for a fee. competitors gain access to the new product.
growth
rapid market acceptance and increasing profits; maximize market share; early adopters
idea generation- internal sources
refer to the company's own formal research and development, management and staff, and intrapreneurially programs.
New product development
refers to original products, product improvements, product modifications, and new brands developed from the firms own research and development
concept testing
refers to testing new product concepts with groups of target consumers
Acquisition
refers to the buying of a whole company, a patent, or a license to produce someone else's product.
business analysis
review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.
decline
sales fall off and profits drop; reduce expenditure and milk the brand; lagging adopters
introduction
slow sales and nonexistent profits because of the heavy expenses of product introduction; create product engagement and trial; innovators
maturity
slow sales growth and profits level off or decline because of increased marketing outlays to defend the product against competition; maximize profit while defending market share; mainstream adopters
idea generation-external sources
sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms.
marketing strategy statement
target market description value proposition planned sales, market-share, and marketing mix.
product life cycle-fad
temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity. may be part of an otherwise normal life cycle, akin case of recent surges in the sales of poker chips and accessories. or the fad may comprise a brands or products entire life cycle.
test marketing
the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings
product image
the way consumers perceive an actual or potential product.
product idea, product concept, and product image
three parts to concept development