Chapter 7: New Product Planning and Development Flashcards Preview

Marketing 5410: Marketing Management > Chapter 7: New Product Planning and Development > Flashcards

Flashcards in Chapter 7: New Product Planning and Development Deck (17):
1

Commercialization

Stage of the new product development process that involves the actual launch of the product and the implementation of the marketing strategy.

2

Cross-Functional Teams

Members from many different departments coming together to jointly establish new product development goals and priorities and to develop schedules.

3

Diversification

A strategy that seeks to develop new products and cultivate new customers. It often leads the organization into new businesses, sometimes through acquisition.

4

Guarantee

An assurance by the producer that the product is as represented and will perform properly. If not, the organization making the guarantee replaces the product or refunds the customer's money.

5

Idea Generation

Stage of the new product development process at which the goal is to ensure that all new product ideas considered by the organization have the opportunity to be heard and evaluated because the success of the process will depend greatly on the quality of the ideas generated.

6

Idea Screening

Evaluation of an idea based on strategic risk, market risk, and internal risk for the purpose of eliminating ideas that could not be profitably marketed and expanding viable ideas into full product concepts.

7

Market Development

A strategy that seeks to find new customers for existing products. An organization pursuing this strategy seeks to establish footholds in new markets or preempt competition in emerging market segments.

8

Market Penetration

A strategy that denotes a growth direction through the increase in market share of present products in present markets. An organization pursuing this strategy hopes to capitalize on existing markets and combat competitive entry or incursions.

9

New Product Development Process

Stages include idea generation, idea screening, project planning, product development, test marketing, commercialization.

10

Product Development

A strategy that seeks to create new products to replace existing ones. An organization pursuing this strategy hopes to capitalize on existing markets and combat competitive entry or incursions.

11

Product Development Stage

Stage of the new product development process at which the product idea has met all expectations and is considered a candidate for further research and testing. In the laboratory, the product is converted into a finished good and tested.

12

Project Planning

Stage of the new product development process at which the idea is evaluated further and responsibility for the project is assigned to a project team. The idea is evaluated in terms of production, marketing, financial, and competitive factors. A development budget is established, and preliminary marketing and technical research is undertaken.

13

Rugby or Relay

An approach to creating and managing product development teams that involves groups in different areas of the organization working simultaneously on the project.

14

Skunkworks

An approach to creating and managing product development teams that involves team members working in relative privacy, away from the rest of the organization.

15

Test Marketing

Stage of the new product development process at which the product is no longer a company secret. Test marketing is a controlled experiment in a limited geographical area to test the new product as well as elements of the marketing mix.

16

Time to Market

The elapsed time between product definition and product availability. It is important because history has shown that organizaitons that are first in bringing their product to market often gain a competitive advantage in terms of profits and market share.

17

Warranty

The statement of the producer of what it will do to compensate the buyer if the product is defective or does not perform properly/