Marketing ch 7

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Marketing ch 7
2012-09-09 16:22:46
Developing Managing Offerings

key terms
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  1. adaptation
    The changes that an organization must make for a product or service to fit the local culture.
  2. alpha testing
    The testing of a product in a laboratory setting.
  3. beta testing
    The testing of a product by real customer in the customer’s location.
  4. concept testing
    Presenting an idea for an offering (including possible marketing communication ideas) to consumers for their reaction early in the offering development process.
  5. decline stage
    The stage of the life cycle at which sales drop and companies must decide whether to keep, modify, or drop a product.
  6. depth interview
    An exploratory research technique of engaging in detailed, one-on-one, question-and-answer sessions with potential buyers.
  7. divesting
    Companies get rid of a product, service, or business.
  8. downsize
    To decrease the size of the package or the amount of product in the package.
  9. financial feasibility
    A new offering’s ability to make money.
  10. focus group
    A group of potential buyers brought together to discuss a marketing research topic with one another.
  11. growth stage
    The stage of the life cycle in which sales increase and more competitors enter the market.
  12. harvesting
    Companies reduce investment in a product, service, or business.
  13. introduction stage
    • The first stage of the product life cycle after a product is launched.
    • investment riskThe potential of losing one’s money and time should a new offering fail.
  14. lead users
    Potential customers who are innovative and develop new applications or new products for their own use without the aid of a supplier.
  15. line extension
    A new idea or offering that occurs when a company comes out with another model (related product or service) based on the same platform and brand as one of its other products.
  16. market test
    The test launch of a product’s complete marketing plan to ensure that it reaches buyers, gets positive reactions, and generates sales of the product.
  17. maturity stage
    The stage of the product life cycle at which sales begin to level off and competitors have saturated the market.
  18. opportunity risk
    The potential loss of revenue a company risks when it chooses an alternative course of action such as launching a different offering.
  19. penetration pricing strategy
    A strategy in which an organization offers a low initial price on a product so that it captures as much market share as possible.
  20. process feasibility
    The degree to which the manufacturing of a product or the delivery of a service can be done within the proper quality specifications on a repeatable basis; the degree to which an organization can actually make and service an offering.
  21. product life cycle (PLC)
    The stages (introduction, growth, maturity, decline) that a product may go through over time.
  22. quality function deployment (QFD)
    A specific process for designing new offerings that begins by specifying a customer’s requirements and then designing a product to meet those needs.
  23. rolling launch
    Introducing a new offering across markets one by one in order to work out any challenges or problems related to marketing and supporting the offering.
  24. skimming pricing strategy
    A high initial price that companies set when introducing new products in order to get back money invested.
  25. standardized
    Keeping a product or service the same in all markets.