Chapter 6: Product Development Flashcards
What is a New Product?
A product new to a company in any way; all come with a new set of risks.
What defines a New-to-the-Market product?
Inventions never seen before; creates a new market.
What is Disruptive Technology?
Technology that shakes up or establishes a new industry.
What are New-category Entries?
Products new to a company, but not new to the market.
What are Product-Line Extensions?
A group of related products marketed by a company.
What are Revamped Products?
Products with new packaging, different features, updated designs, and functions.
What are the stages of the New-Product Development Process?
The process of conceiving, testing, and launching a new product in the marketplace.
What is New-Product Strategy Development?
The direction a company will take when it develops a new product.
What is Idea Generation?
The stage where a product concept lists new products.
What is Idea Screening?
Evaluating ideas to determine their fit.
What is Business Analysis?
Analyzing a new product to determine its profitability potential.
What is Product Development?
Determining if a product can be produced and offered in a way that meets customer needs and generates profits.
Example: Prototypes.
What is Test Marketing?
Introducing a new product in final form to a limited market to test all 4Ps and fine-tune the marketing plan.
What is Product Launch?
Completing all final preparations for making a fully tested product available to the market.
How can risks be reduced in new product development?
By listening to customers about their needs and wants, committing to the New Product Development Process, and understanding market trends through environmental scanning.
What is Product Adoption?
Occurs when consumers purchase and use a new product.
What is Diffusion?
The process by which a product is adopted and spreads across various types of adopters.
What is the Consumer Adoption Process?
The process by which customers formally accept and purchase products.
What are the types of adopters?
Different categories of consumers based on their adoption speed and behavior.
Who are Innovators?
Consumers that adopt a product almost immediately after it’s launched.
Who are Early Adopters?
Consumers that purchase and use a product soon after it has been introduced, but not as quickly as Innovators.
Who are Early Majority?
Consumers that gather more information and spend more time deciding to make a purchase.
Who are Late Majority?
Consumers that rely on others for information, buying a good or service because others have already done so.
Who are Laggards?
Consumers that don’t like change and may remain loyal to a product until it’s no longer available for sale or stops working.
