chapter 8 Flashcards
(20 cards)
product life cycle stages
1-introduction stage
2-growth stage
3-maturity stage
4-decline
5-goal
introduction stage
product enjoys minimal sales, profits, and competition
growth stage
a product moves into a period of rapid growth and profit increases
maturity stage
competition becomes more severe, consumers are presented with competitive products
decline stage
the products sales flatten out/decline
goal stage
manage products so they can extend the period of time they have until the decline
things that shorten life cycle
1- technological change
2-availability of mass communication vehicles
3-consumer products
high-learning products have..(personal computers)
-extended introductory period
-significant consumer education is required for it
low-learning products (Gillette’s Fusion razor)
-short introductory stage
-little consumer education required
fashion products
short lifecycle, yet always makes a comeback and resurfaces again a few years later
fad products
very short life cycle that have rapid growth as well as rapid decline
4 ways a product life cycle can be extended
-modifying the product
-modifying the market
-repositioning the product
-introducing a new product
modifying the product
-product improvement
-line extensions
modifying the market
-finding new customers
-increasing the products use
-creating a new situation
introducing a new product
example- beyond meat burger
adoption curve
the adoption of acceptance of a new product or innovation
4 barriers that deter adoption
-usage
-value
-risk
-psychological
7 step new product development strategy
1.new product development strategy (focus on meeting objectives)
2.idea generation (brainstorm new ideas)
3.screening and evaluation (evaluate and develop concepts)
4.business analysis (identify features)
5.test marketing (test marketing strategy in defined areas)
6.development (create prototype)
7.commercialization (launch)
types of innovations
-minor innovations
-continuous innovations
-radical innovations
5 groupings for adoption curve
1-Innovators
2-early adopters
3-early majority
4-laggards
