test 4 marketing Flashcards
(44 cards)
alpha testing
a test to see if a product will preform how its supposed to; occurs in the research and development department
beta testing
having consumers test a prototype in a real setting to determine its functionality, performance, problems, and other issues
concept
brief written description of a product or service
concept testing
when a concept is presented to potential users to figure out their reactions
decline stage
stage of the product life cycle where sales decline and the product eventually exits the market
diffusion of innovation
the process when the use of an invention spreads through a market
early adopters
the second group of consumers in diffusion to innovation model, to use a product innovation (13.5% of the population) Dont like to take as much risk but wait after careful review
early majority
a group of consumers in diffusion to innovation model (34%) dont like to take risk and wait until bugs are worked out, few products are profitable until this group buys them
first movers
product pioneers that are the first to create a market or product category, making them recognizable to consumers and establishing a commanding early market share lead
growth stage
stage of product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category
innovation
the process by which ideas are turned into products and services that will help firms grow
innovators
the buyers (2.5%) who want to be the first to have a new product
introduction stage
the stage in the product life cycle when innovators start buying the product
laggards
consumers (16%) who avoid change and rely on traditional products until they are no longer available
late majority
the last group of buyers to enter a new product market (34%) when they do, the product has achieved its full market potential
lead users
innovative product users who modify existing products according to their own ideas to suit their needs
licensing
a method used in developing new products in which a firm buys the rights to use a technology or idea from another firm
maturity stage
stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them
outsourcing
firm hires an outside firm to facilitate some aspect of its business. In the context of a new product, the outsourced firm helps the firm develop its new good
pioneers (breakthroughs)
new product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market
premarket test
conducted before a product or service is brought to market to determine how many customers will try and then continue to use it
product development (product design)
the process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product’s form and features
product life cycle
defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning
prototype
the first physical form, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes
