9. Developing New Product na the PLC Flashcards
(24 cards)
The New Product Development Process
Idea Generation, Idea Screening, Concept Dvelopment and Testing, Marketing Strategy Development, Business Analysis, Product Development, Test Marketing, Commercialization
New Product Development
The development of original products, product improvements, product modifications, and new brands, through the firm’s own product development efforts.
Idea Generation
The systematic search for new product ideas. Internal idea sources (R&D, staff, executives), external (distributors and suppliers, competitors, magazines, internet, consumers) and crowdsourcing.
Crowdsourcing
Inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process.
Idea screening
Screening new product ideas to spot the good ones and drop poor ones as soon as possible. R-W-W (Is it real?, Can we win?, Is it worth doing?)
Product Concept
A detailed version of the new product idea stated in meaningful consumer terms.
Concept Testing
Testing new product concepts with a group of target consumers to find out if the concepts have as strong consumer appeal.
Marketing strategy development
Designing a marketing startegy for a new product based on the product concept.
Marekting strategy statement
The first part - the target market, the planned value proposition, the sales, market share and profit goals for the first year. The second pard - the planned price, distribution and marketing budget for the first year. The third part - the planned long-run sales, profit goals and marketing mix strategy.
Business Anlaysis
A review of the sales, costs and profit projections for a new product to find out whether these factors satisfy the company’s objectives.
Product Development
Developing the product concept into a physical product to ensure that the product idea can be turned onto workable market offering.
Tets marketing
The stage of new product development in which the product and its proposed marketing program are tested in realistc market settings.
Commercialization
Introducin a new product into the market.
Customer-Centered New Product Development
New product development that focuses on finding new way to solve customer’s problems and create more customer-satisfying experience.
Team-based new product development
New product development in which various company departments work closely together, overlapping the steps in the development process to save time and increase effectiveness.
Product Life Cycle (PLC)
The course of a product’s sales and profits over its lifetime.
Product Development
The company finds and develops a new product idea. Sales are zero and the investment costs mount.
Introduction stage
Slow sales growth, profits are non-existent because of the heavy expenses for product introduction. The product is first distributed and made available for purchase. Inovators
Growth stage
A period of rapid market acceptance and increasing profits. The product sales start climbing quickly. Meets the competition. Early adopters
Maturity
Slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition. Can modify the market, the product, the marketing mix, increase the usage. Mainstream adopters
Decline
Sales fall off and profits drop. Maintain, harvest (reduce various costs) or drop the product. Lagging adopters
Style
A basic and distinctive mode of expresion.
Fashion
A currently accepted or a popular style in a given field.
Fad
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
