MKTG ch. 12
Laggards roughly make up ___% of the market.
16
_______ development entails a process of balancing various engineering, manufacturing, marketing and economic considerations to develop a product's form and features or a service's features.
Product
During test marketing, the potential elements of the marketing mix that may be used include:
advertising and coupons
In _____ testing, he firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended, by performing tests in the R&D department.
alpha
example of a first mover
apple
Innovators are important to firms because they
are essentially the testers for a product or service and are often experts who provide the initial review.
Most Americans drink coffee each morning example of?
compatibility
The degree to which one's product is consistent with the needs and habits of target consumers is known as
compatibility
Trialability and ______ refer to how complicated a product is and how wast or hard it is to try.
complexity
Starbucks coffee is a simple product and is quite easy to try example of?
complexity and trialability
Through the effective use of ____ testing, firms may be able to avoid the high costs of product development for product ideas that do not meet customers' expectations.
concept
without innovation, what options would be available to firms?
contiue to market current products to current customers and take current products to new markets
Concept testing can be as simple as a brief written description of the product that might also include:
customer needs it satisfies and visual images
Firms feel compelled to add new products to their offerings in order to satisfy the changing needs of current and new ______.
customers
who capitalizes on weaknesses?
imitators
While the ____ is the first to adopt the item, often in its more extreme form, the ____ is often the first non-celebrity a consumer knows who adopts next.
innovator; early adopter
Susan launched a brownie company and based on her market research she knew that she could sell 3 brownies for $5, but she decided to start selling the brownies at a(n)______ in order to get customers to try the brownies.
introductory price
Starbuck has their distinct logo on each of their coffee cups is an example of______.
observability
When a product such as a nick-free racer blade is launched, it may diffuse more slowly than a product like the Apple Piaf, which is easily seen and whose benefits or uses are easily communicated to others. This exemplifies a difference in
observability
During concept testing it is important to present a brief written description to _________ to obtain reactions to the ideas presented.
potential buyers/users
Most would perceive that Starbucks is a superior form of coffee is an example of ____.
relative advantage
The speed at which products diffuse depends on a number of different product characteristics:
relative advantage, compatibility, complexity, observability, trial-ability
Firms must continually introduce new products with improved features and find new uses for existing products in order to defend market _____ during intense competition.
share
A fee paid simply to get new products into stores or to gain more or better shelf space for their products.
slotting allowance
Retailers may not only need to make a profit on each sale, but they may also receive _____ _____ as an encouragement to give better shelf space to new products.
slotting allowance
By the time the late majority enters the market, sales tend to ____ or even _____.
stabilize; decrease
when a firm launches a new product, it needs to review the sales and profit levels of the product to determine its success, this is an example of what stage in the new product development process?
the evaluation of results
Marketing costs increase and intense competition on price are characteristics of
the maturity stage
During the introduction stage sales are ____ and there are _____ competitors.
very low; none or very few
A manufacturer must work with retailers to ensure that a new product will be delivered and available for sale
when a customer wants it, at the stores the customer is expecting to find it, and in sufficient quantities
the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters.
Diffusion of Innovation
These people tend to be opinion leaders of particular product categories and are less risk seeking than innovators.
early adopters
Firms attempt to reach new consumers by studying their preferences and producing different product variations in what stage?
growth stage
A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the
product life cycle
Introduction (Low), Growth (Rising), Maturity (Peak), Decline (Dropping)
product life cycle
The _____ ___ _____ concept is indeed a valid idea, and new analytical tool now provide "rules" for deeming key turning points in the cycle.
product life cycle