Chapter 9 Flashcards
(21 cards)
New product development
This refers to original products, product improvements, product modifications, and new brands developed from the firm’s own research and development.
Acquisition
This refers to the buying of a whole company, a patent, or a license to produce someone else’s product.
Idea generation
This is the systematic search for new product ideas.
Internal sources
This refers to the company’s own formal research and development, management and staff, and intrapreneurial programs.
External sources
This refers to sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms.
Crowdsourcing
This involves inviting broad communities of people into the new product innovation process.
Idea screening
Screening new product ideas to spot good ones and drop poor ones as soon as possible.
Product concept
A detailed new product idea stated in meaningful consumer term.
Concept testing
Testing new products with a group of target consumers to find out if the concept have strong consumer appeal.
Marketing strategy development
This is designing an initial marketing strategy for a new product based on the product concept.
Marketing strategy statement
This consists of:
Target market description
Value proposition planned
Sales, market-share, and marketing mix
Business analysis
This is 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
This is developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
Test marketing
This is the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings.
Commercialization
This involves introducing a new product into the market. When to launch?
Customer-centred new product development
This focuses on finding new ways to solve customer problems and creating 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 life cycle (PLC)
The course of a product´s sales and profits over its lifetime.
Product development Introduction Growth Maturity Decline
Style
A basic and distinctive mode of expression.
Fashion
A currently accepted or popular style in a given field.
Fad
A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
