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  1. Explain the importance of developing new products
  2. describe the six categories of new products
    New-to-the-World, New Product Linees, Product Line Additions, Improvements or Revisions, Repositioned Products, Lower-Priced Products
  3. Define Test Marketing
    The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
  4. Alternatives to Test Marketing are
    • Single-source research using superarket scanner data
    • Stimulated (laboratory) market testing
    • online test marketing
  5. Explain the steps in the new-product development process
    • Idea generation
    • Idea Screening
    • Business analysis
    • Development
    • Test Marketing
    • Commercialization
  6. Define Idea Screening
    The first filter in theproduct development process which eleminates ides that are inconsistent with the organization's new product strategy or are inappropriate for some other reason
  7. Discuss global issues in new-product development
    • Develop poduct ofr potential worldwide distribution
    • Modify for unique market requirments
    • Design products to meet regulations and key marekt requirments
  8. Define Concept test
    A test to evaluate a new product idea, usually before any prototype has been created. often successful for line extensions.
  9. Explain the diffusion process through which new products are adopted
    Communication Aids the Diffusion Process by Word of Mouth, or Direct from Mareter
  10. New product success factors
    • Listenign to customers
    • Producing the best product
    • Vision of future market
    • Strong leadership
    • Commitment to new product development
    • Project-based team approach
    • getting every aspect right
  11. Define Diffusion
    The process by which the adoption of an innovation spreads
  12. What are the categoreis of Adopters
    Innovators, Early Adopters, Early Majority, Late Majority, Laggards
  13. Explain the concept of product life cycles
    A concept that provides a way to trace the stages of a product's acceptance from its introduction (birth) to its decline (death)
  14. List the traits in teh Introductory Stage of a Product's Life Cycle List 4 (at a time)
    • High failure rates
    • Litter competition
    • Frequent product modification
    • Limited distribution
    • High marketing and production costs
    • Negative profits with slow sales increases
    • Promition focuses on awareness and information
    • Communication challenge is to stimulate primary demand
  15. List Traits in the Growth stage of a Products Life Cycle (4 diff ones at a time)
    • Increasing rate of sales
    • Entrance of competitors
    • market consolidation
    • initial healthy profits
    • aggressive advertising of the differences between brands
    • wider distribution
  16. List Traits in the Maturity Stage of a Products Life Cycle (4 diff ones at a time)
    • Sales increase at a decreasing rate
    • saturated markets
    • annual models appear
    • lengthened product lines
    • service and repair assume imporant roles
    • heavy promotions to consumers and dealers
    • marginal competitors drop out
    • Niche marketers emerge
  17. List traits in the Decline Stage of a products Life cycle (3 differnt ones at a time)
    • Long-run drop in sales
    • Large inventoreis of unsold items
    • Elemination of all nonessential marketing expenses
    • Organized abandonment
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2011-07-01 18:55:39

Chapter 11 important things from slides
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