Mktg 11

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  1. New Product
    a prdocut new to the world, the market , the producer, the seller or some combo of these
  2. Categories of New Products
    • New-to-the-world: smallest category
    • New Product Lines
    • Additions to existing product lines
    • Improvements or revisions of existing products
    • Repositioned products
    • Lower-priced products
  3. New-Product Strategy
    plan that links the new-product development process with the objectives of the mktg dept, the biz unit and the corporation
  4. Idea Generators
    • Customers
    • Employees
    • Distributors
    • Vendors
    • Competitors
    • R&D
    • Consultants
  5. Screening
    • 1st filter in prod. development process
    • eliminates ideas that are inconsistent with teh org's new-product strategy or are obviously inappropriate for some other reason
  6. Concept Test
    • test to evaluate a new-product idea, usually before any prototype has been created
    • used during screening stage
  7. Business Analysis
    • 2nd stage in prod. development process
    • where preliminary figures for demand, cost, sales & profitability are calculated
  8. Development
    • 3rd stage
    • in which a prototype is developed and a mktg strategy is outlined
  9. Simultaneous product development
    • a team-oriented approach to new-product development
    • allows firms to shorten the devel. process & reduce costs
  10. Test Marketing
    • limited introduction of a product and a mktg program to determine the rxns of potential customers in a market situation
    • expensive
  11. Alternatives to Test Mktg
    • Scanner-based research
    • Simulated (laboratory) Market testing
    • Internet
  12. Simulated (Lab) Market Testing
    • presentation of advertising and other promotional materials for several products, including a test product, to members of the product's target market
    • cheaper
  13. Commercialization
    • final stage in new-product devel.
    • the decision to market a product
  14. Innovation
    product perceived as new by a potential adopter
  15. Diffusion
    process by which the adoption of an innovation spreads
  16. 5 Categories of Adopters
    • Innovators: first 2.5% to adopt
    • Early Adopters: next 13.5% **new product's best friend**
    • Early Majority: next 34%
    • Late Majority: next 34%
    • Laggards: final 16%
  17. 5 Product Characteristics to Predict/Explain rate of Acceptance
    • Complexity: more complex product, slower its diffusion
    • Compatibility
    • Relative advantage
    • Observability
    • "Trialability"
  18. Product Life Cycle (PLC)
    a concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death)
  19. 4 Stages of PLC
    • Introduction
    • Growth
    • Maturity
    • Decline
  20. Product Category
    • all brands that satisfy a particular type of need
    • does not dictate mktg strategy
  21. Introductory Stage
    • full-scale launch of a new product into the marketplace
    • characterized by: high failure rate, little competition, frequent prod. modification & limited distribution
  22. Growth Stage
    • 2nd stage of PLC when sales typically grow at an increasing rate
    • many competitors enter the market
    • large companies may start to acquire small pioneering firms
    • profits are healthy
  23. Maturity Stage
    • 3rd stage of PLC
    • period during which sales increase at a decreasing rate
  24. Decline Stage
    • 4th and final stage
    • long-run drop in sales
Card Set
Mktg 11
Chapter 11
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