chapter 4 Flashcards
(38 cards)
What is product or service development?
Product or service development is the complete process of bringing a new product or service to market, including idea generation, design, engineering, market research, and analysis.
The new product development process involves ______, _______, and _______.
Idea generation, market research, and product design.
Product design must be practical enough for ______ and powerful enough for ______.
Production, performance.
List the four distinct stages in the product/service generation process.
- Idea Generation
- Incubation
- Implementation
- Diffusion
What is the purpose of idea screening?
The purpose of idea screening is to evaluate and filter ideas to identify the most promising ones.
Attractive ideas must be able to produce ______ since people don’t buy ideas but purchase ______.
Product concepts, concepts.
What are the three groups for idea screening?
Promising, marginal, and rejects.
______ involves presenting the product concept to target consumers to gather feedback and assess its potential market success.
Concept testing
List and explain the three parts of a marketing strategy plan.
Market size: The target market’s size and potential.
Planned price: The intended pricing strategy for the product.
Long run sales: Projections for long-term sales and profitability.
What is business analysis in the context of product development?
Business analysis involves estimating total sales, costs, and profits to determine if the new product will be financially viable.
Estimated total sales are calculated based on ______ and ______.
Market analysis, sales projections.
What is breakeven analysis?
Breakeven analysis is determining the point at which total revenues equal total costs, meaning no profit or loss.
Breakeven can be used as a financial measure to evaluate the merit of a new product proposal.
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What is the goal of product development?
The goal is to design and create a functional and marketable product that meets customer needs and business objectives.
Where are functional tests conducted?
Functional tests are conducted in laboratories.
Where are consumer tests conducted?
Consumer tests are conducted in real-world environments to gather user feedback.
What is the goal of market testing?
The goal of market testing is to evaluate the product’s market performance and gather feedback to refine the product before a full-scale launch.
How can market testing be useful?
Market testing can identify potential issues, assess market acceptance, and optimize marketing strategies.
What are the three choices a company has if its competitor is entering the market?
First entry, late entry, and parallel entry.
What are the advantages of the late entry strategy?
Advantages include learning from the first entrant’s mistakes and entering the market with a refined and improved product.
What are the advantages of the first entry strategy?
Advantages include establishing brand recognition and customer loyalty before competitors enter the market.
What is intellectual property protection?
Intellectual property protection involves securing legal rights for inventions, designs, and artistic works to prevent unauthorized use by others.
What is a patent?
A patent is a contract between an inventor and the government granting the inventor exclusive rights to benefit from their invention in exchange for disclosing it to the public.
Patents can be ______, _______, _______, and used as ______.
Sold, transferred, licensed, collateral.
