chapter 9 Flashcards
(38 cards)
what are the two ways a firm can obtain new products
1) buying a whole company, a patent , or a license to produce someone else’s product
2) by a new product development efforts
new product development
The development of original products , product modifications, and new brands through the firm’s own product development efforts
The new product development process
1) idea generation
2) idea screening
3) concept development and testing
4) marketing strategy development
5) business analysis
6) product development
7) test marketing
8) commercialization ( introducing a new product into the market)
the product life-cycle strategies
1) product development
2) introduction
3) growth
4) maturity
5) decline
crowdsourcing
inviting broad communities of people: customers, employees, independent scientists and researchers, and even the public at large- into the new product innovation process
product concept
a detailed version of the new product idea stated in terms that are meaningful to the consumer
concept testing
testing new product concepts with a group of target consumers to find out if the concepts have a 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
Developing the product concept into a
physical product or a detailed service
blueprint to ensure that the product idea
can be turned into a workable market
offering.
test marketing
stage of new product development in which the product and it proposed marketing program are tested in realistic market setting
Customer-centered new product
development
New product development that focuses
on finding new ways to solve customer
problems and create more customer-
satisfying experiences.
team- based new product development
new product development in which various company departments work closely together overlapping the steps in the product development process to save time and increase effectiveness
Product line
A group of products from a company
that are closely related because they
function in a similar manner, are sold to
similar customer groups, serve similar
customer needs, are marketed through
the same types of outlets, or fall within
given price ranges.
service intangibility
Services cannot be seen, tasted, felt,
heard, or smelled before they are
bought.
Service inseparability
Services are produced and consumed at
the same time and cannot be separated
from their providers.
Service variability
The quality of services may vary greatly
depending on who provides them
and when, where, and how they are
provided.
Service perishability
Services cannot be stored for later sale
or use.
Service profit chain
The chain that links customer
satisfaction and profits for service firms
with employee satisfaction.
internal marketing
Orienting and motivating customer-
contact employees and supporting
service employees to work as a team to
provide customer satisfaction.
Interactive marketing
Training service employees in the fine art
of interacting with customers to satisfy
their needs.
Brand equity
The differential effect that knowing
the brand name has on a customer’s
emotions, attitudes, and behaviors
related to the product or its marketing.
Brand value
The total financial value of a brand.
Store brand (or private label)
A brand created and owned by a reseller
of a product or service.
