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.
