-
What is the New Product Development process?
- Idea generation
- idea screening
- business analysis
- development
- test marketing
- commercialization
-
Who contributes in the idea generation process?
- R&D
- Employees
- consultants
- distributors
- competitors
- vendors
- customers
-
What is idea screening?
goal is to reduce number of ideas. Find which ideas do consumers like and fit our company
-
What is concept test?
consumers reactions to descriptions of product idea.
-
What questions are asked during the business analysis?
- Will it be profitable to make and sell the product?
- What is total size of market?
- Whats the likely market share?
- Whats the manufacturing costs and unit contribution?
- How much do we need to spend on marketing launch?
-
What is done in development?
- Prototype,
- develop packaging and labeling,
- plan how to advertising, pricing, what channels to use.
-
What is done in test marketing?
- a "real world" test of a product and marketing program in a limited market.
- can evaluate various marketing strategies
- costly
- takes time
- product can be exposed to competitors
-
what is the Commercialization stage?
- We ask when and where.
- When: what do we think competitors are doing, and how will launch affect our other product
- Where: start regionally or global rollout
-
What does the Diffusion of innovations model tell us?
How quickly will it spread through the market?
-
What does the product life cycle model tel us?
How should marketing mix be adapted over the course of the life of the product?
-
How do innovations spread?
- -Innovation: product perceived as new by potential adopters
- -Diffusion process
- -Fiver categories of adopters
-
What is the diffusion process?
the process by which an increasing number of people adopt the product.
-
What are the five categories of adopters?
- Innovators
- early adopters
- early majority
- late majority
- laggards
-
What affects rate of adoption?
- Complexity: more complex=slower diffusion
- compatibility: fit with current values and experiences of target market. how does it fit in our lives
- relative advantage: how much better is it than current options.
- Observability: are benefits of product easily observed? ex iphone is
- Trailabilty: how easy is it to try new product? Ipad low, food high
-
What is PLC?
- Product Life Cycle, a diagnostic tool that helps marketers anticipate future changes in the market.
- DOES NOT TELL MANGERS WHEN THE PRODUCT WILL GO THROUGH EACH STAGE
-
What are the PLC Stages?
- Introduction
- Growth
- Maturity
- Decline
|
|