Chapter 12 - The new Product process Flashcards Preview

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Flashcards in Chapter 12 - The new Product process Deck (20):
1

6 steps involved in developing new products

-Idea Generation
-Concept Testing
-Product Development
-Market Testing
-Product Launch
-Evaluation of results

2

Components of Idea Generation
(listening to customers is important)

-Internal R&D
-Expensive, continuous cost, hoping for a payout
-Collaboration with other firms
-License technology from research intensive firms
-Brainstorm
-Research competitors products/services
-Conduct Consumer Research

3

Benefit of R & D Consortia (collaboration with other firms)

Shared investment, shared reward

4

Benefit of Licensing

Saves high cost of R&D but means the firm is banking on a solution that already exists but hasn't been marketed

5

Characteristics of Brainstorming

No idea can be immediate accepted or rejected
-Vote on best ideas after
-Moderators draw attention to specific features such as attributes, packaging, performance expectations

6

how can Outsourcing help

Letting another company improve functionality and adjust-ability of product or reduce costs

7

Researching Competitors Products

Reverse engineering - take a product apart, analyze it, put it back together without infringing on competitor patents

8

What is a Lead User

Innovative product users who modify existing products

9

Concepts (in concept testing)

Brief written descriptions,
its technology,
working principles,
forms,
what customer needs it would satisfy

10

Concept testing - Helps avoid cost of unnecessary product development

Presenting concept statement to potential buyers to obtain their reactions.

These reactions enable developers to estimate sales value, make changes, and/or determine if the idea is worth pursuing

11

Definition of product development

The process of balancing several considerations to develop a products form and features

12

2 forms of Market Testing

Premarket tests - conducted before brought to market to determine how many customer will try and continue to use a product according to a small group of potential customers

Test Marketing - Introduces offering to limited geographical area to determine success potential.
-uses all the elements of a marketing mix
-Costs more and takes longer than premarket tests

13

What does a product launch involve?

Promotion - Required for new products at each step in supply chain

14

Types of promotions

Trade promotions - to wholesalers or retailers to get them involved in the new product.

Introductory Price Promotion - limited duration, lower than normal prices to incentivize retailers to try the products

15

Trade Show

Temporary concentration of manufacturers so retailers get to see whats on the market

16

Manufacturers work with retailers on decisions related to place, including

-If merch should be stored at retailers distribution centers or distributed separately to stores
-What initial fill-in quantities
-Individually packaged?

17

Slotting allowance

fee paid to retailers by manufacturers for better shelf space

18

MSRP

manufacture suggested retail price is optional but can result in manufacturer not delivering on promotions or products

19

During Test Marketing _____ data is used to improve probability of success

Panel Data

20

3 measurements of post launch evaluation

1. Its satisfaction of technical requirements (it performs)
2. Customer acceptance (do the people like it?)
3. Satisfaction of the firms financial requirements (profit?)