 | Term | Definition |
| |
New Product Development |
Development of original products, product improvements and modifications, and new brands |
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New Brand Innovation |
Very risky, 70-90% fail within first year |
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Reasons New Products Fail |
Overestimation of market, design problems, competition, excessive costs, poor marketing (research), badly 4 Ps |
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Product Development Process |
Idea generation, screening, development, testing, strategy development, business analysis, product development, test marketing, commercialization |
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Idea Generation Externals |
Customers, competitors, distributors, suppliers, outsourcing |
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Idea Screening |
Spot good ideas and drop poor one, evaluated against customer criteria |
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MS Development Part One |
Describes target market, planned value, sales, market share and profit goals |
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MS Development Part Two |
Outlines products price, distribution and budget |
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MS Development Part Three |
Describes planned long-run sales and profit goals, and marketing strategy |
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Business Analysis |
Review of sales, costs and profits to assess with company objectives. Positive results moves to product development. |
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Product Development |
Develops concept to physical product, calls for investment jump, makes prototypes with correct physical and psychological characteristics |
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Testing Marketing |
Not needed for all products, product and program introduced to more realistic setting, can be expensive and time consuming |
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Commercialization |
Timing, Where, Market Rollout |
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Customer Centered New Product Development |
Focus on finding new ways to solve customer problems and create more customer-satisfying experiences |
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Team-Based New Product Development |
Various company departments work closely together overlapping the steps int he product development process to save time and increase effectiveness |
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Systematic New Product Development |
Innovation management systems collect, review,e valuate and manage new-product ideas |
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Product Life Cycle |
Development, Introduction, Growth, Maturity, Decline |
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Product Class |
Has the longest life cycle |
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Product Form |
Tends to have standard PLC shape |
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Brand |
Changes quickly because of chaning competititve attacks and responses |
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Style |
Basic and distinctive mode of expression |
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Fashion |
Popular style in a given field |
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Fad |
Temporary period of unusually high sales driven by consumer enthusiasm, declines quickly |
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PLC Problems |
Identifying proper stage, when to move stages, factors that affect movement through stages, forecast level and length of PLC stages |
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Introduction Stage of PLC |
Low sales, High costs, Low profits, Objective is to create product awareness and trial, basic products, selective distribution, heavy to entice product trial |
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Growth Stage of PLC |
Rising sales, Average costs, Rising profits, Objective is to maximize share, extended product, uses penetration strategy, has intense distribution, Reduces promotion to raise demand |
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Maturity Stage of PLC |
Peak sales, Low cost per customer, high profits, objective to max profit and defend market share, product is diversified, promotion increased, price is competitive |
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Strategies of Maturity Stage |
Modify market, product and marketing mix |
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Modifying Market |
Increase consumption by looking for new users, repositioning and increase usage |
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Modifying Product |
Change quality, features, or style to attract new users and more usage by improcing durability, reliability, attractiveness, and usefulness |
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Modifying Marketing Mix |
Improve sales by changing one or more marketing mix elements through cutting prices and improving ads |
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Decline Stage of PLC |
Declining sales, low cost per customer, declining profits, objective is to reduce expenses and milk brand, promotion is reduced and distribution is selective |
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Int'l Product and Service Marketing |
Determine whihc products and services to introduce in which countries and how much to standardize or adapt |
