Chapter 8 Flashcards
(39 cards)
New-product development
The development of original products, product improvements, product modifications and new brands through the company’s own RandD efforts
Idea generation
The systematic search for new-product ideas
Crowdsourcing
Inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new-product innovation process
Idea screening
Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible
Product concept
The idea that consumers favour products that offer the most quality, performance and features, and that the organisation should therefor devote its energy to making continuous product improvements; a detailed version of the new-product idea stated in meaningful consumer terms
Product image
The way consumers perceive an actual or potential product
Concept testing
Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
Marketing strategy development
Designing an initial marketing strategy for a new product based on the product concept
Business analysis
A review of the sales, costs and profit projections for a new product to find out whether these factors satisfy the company’s objectives
Product development
A strategy for promoting company growth by offering modified or new products to current market segments; developing the product concept into a physical product to ensure that the product idea can be turned into a workable product
Test marketing
The stage of new-product development in which the product and marketing program are introduced in more realistic market settings
Commercialisation
Introducing a new product into the market
Customer-centred new-product development
Focuses on finding new ways to solve customers’ problems and create more customer-satisfying experiences
Sequential product development
A new-product development approach in which one company department works individually to complete its stage of the process before passing the new product along to the next department and stage
Team-based new-product development
An approach in which company departments work together in cross-functional teams, overlapping the steps in the product development process to save time and increase effectiveness
Product life cycle
The course of a product’s sales and profits during its lifetime. It involves five distinct stages: product development, introduction, growth, maturity and decline
Style
A basic and distinctive mode of expression
Fashion
A currently accepted or popular style in a given field
Fad
A fashion that enters quickly, is adopted with great zeal, peaks early and declines quickly
Introduction stage
The stage in the product life cycle when the new product is first distributed and made available for purchase
Growth stage
The stage in the product life cycle when a product’s sales start climbing quickly
Maturity stage
The stage in the product life cycle when sales growth slows or levels off
Decline stage
The stage in the product life cycle when a product’s sales decline
Drawing analogies
Making connections among facts, ideas or experiences that are normally considered separately
