Innovation
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Terms in this set (118)
a group of consumers in the diffusion of innovation model that represents approximately 34 % of the population; members don't like to take much risk and therefore tend to wait until bugs are worked out of a particular product or service; few new products can be profitable until this large group buys them
Clinical trailmedical test of the safety and efficiency of a new drug or treatment with human subjectsReverse engineeringinvolves taking apart a competitor's product analyzing it, and creating an improved product that does not infringe on the competitor's patents if any existLead userinnovative product users who modify existing products according to their own ideas to suit their specific needs.Conceptsbrief written descriptions of a product or service; its technology, working principles, and forms; and what customer needs it would satisfyConcept testingthe process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions.Product development(product design) entails the process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's featuresProduct designproduct developmentPrototypethe first physical form or service description of a new product, still in rough or tentative form, that has the same properties as the new product but is produced through different manufacturing processes, sometimes even crafted individuallyAlpha testingan attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm's research and development (R&D) departmentBeta testinghaving potential customers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its usePremarket testsconducted before a product or service is brought to market to determine how many customers will try and then continue to use itTest marketingintroduces a new product or service to a limited geographical area (usually a few cities) prior to a national launchTrade promotionspromotions to wholesalers or retailers to get them to purchase the new productsIntroductory price promotionsShort-term price discounts designed to encourage trailTrade showmajor events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industryManufacturer's suggested retail price (MSRP)The price that manufacturer's suggest retailers use to sell their merchandiseSlotting allowancefees firms pay to retailers simply to get new products into stores or to gain more or better shelf space for their productsProduct life cycledefines the stages that new products move through as the enter, get established in and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planningIntroduction stagestage of the product life cycle when innovators start buying the productGrowth stagestage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product categoryMaturity stagestage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning themDecline stagestage of the product life cycle when sales decline and the product eventually exits the marketProductanything that is of value to a consumer and can be offered through a voluntary marketing exchangeCore customer valuethe basic problem solving benefits that consumers are seekingAssociated servicesthe non-physical attributes of the product including product warranties, financing, product support, and after-sale service.Augmented productassociated servicesConsumer productsproducts and services used by people for their personal useSpecialty products/servicesthose for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliancesConvenience productsthose for which the consumer is not willing to spend any effort to evaluate prior to purchaseUnsought products/servicesProducts or services consumers either do not normally think about buying or do not know aboutProduct mix(product assortment) the complete set of all products offered by a firmProduct linesgroups of associated items, such as those that consumers use together or think of as part of a group of similar productsBreadththe number of different product lines offered by a firm; also known as varietyDepththe number of categories within a product lineBrand equitythe set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or serviceLicense brandan agreement allows one brand name to use another's name image, and or logo for freeBrand awarenessmeasures how many consumers in a market are familiar with the brand and what it stands for; created through the repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumersPerceived valuethe relationship between a product's or service's benefits and its costsGreen productsan ecologically safe product that may be recyclable, biodegradable, more energy- efficient, and or have better pollution controlsBrand associationsthe mental links that consumers make between a brand and its key product attributes; can involve a logo, slogan, or famous personalityBrand personalityrefers to the set of human characteristics associated with a brand, which has symbolic or self-expressive meanings to consumersBrand loyaltyoccurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same categoryManufacturer brands (national brands)Brands owned and managed by the manufacturerPrivate-label brandsbrands developed and marketed by a retailer and available only from that retailerStore brandsprivate-label brandsHouse brandsprivate-label brandsOwn brandsprivate-label brandsPremium brandsa branding strategy that offers consumers a private label of comparable or superior quality to a manufacturer brandGeneric brandsno-frills products offered at a low price without any branding informationCopycat brandsmimic a manufacturer's brand in appearance but generally with lower quality and pricesExclusive co-branddeveloped by national brand vendor and retailer and sold only by that retailerFamily branda firm's own corporate name used to brand its product lines and productsIndividual brandthe use of individual brand names for each of a firm's productsBrand extensionthe use of the same brand name for new products being introduced to the same of new marketsLine extensionthe use of the same brand name within the same product line and represents an increase in a product line's depthBrand dilutionoccurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to holdCo-brandingthe practice of marketing two more brands together, on the same package or promotionBrand licensinga contractual agreement between firms, where one firm allows another to use its brand name, logo, symbols, or characteristics in exchange for a negotiated feeBrand repositioninga strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferencesPrimary packagethe packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumptionSecondary packagethe wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional information that may not be available on the primary packageMarketing researcha set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data hat can aid decision makers involved in marketing goods, services, or ideasSecondary datapieces of information that have already been collected from other sources and usually are readily availablePrimary datadata collected to address specific research needsExternal secondary datadata collected form sources outside of the firmSyndicated datadata available for a fee from commercial research firms such as Information Resources Inc. (IRI), National Purchase Diary Panel, and ACNielsen.Scanner dataa type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out countersPanel datainformation collected form a group of consumersInternal secondary datadata collected form a firm's own data taken from their day to day operationsData warehouseslarge computer files that store millions and even billions of pieces of individual dataData miningthe use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variablesExploratory researchattempts to begin to understand the phenomenon of interest; also provides initial information when the problem lacks any clear definitionConclusive researchprovides the information needed to confirm preliminary insights, which managers can use to pursue appropriate courses of actionObservationan exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutinyCrowdsourcingan exploratory research technique that uses social media to obtain ideas and content form a large group of peopleIn-depth interviewan exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issueFocus group interviewsa research technique in which a small group of persons (usually 8 to 12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquirySurveya systematic means of collecting information form people that generally uses a questionnaireQuestionnairea form tat features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives; questions can be either unstructured or structuredUnstructured questionsopen-ended questions that allow respondents to answer in their own wordsStructured questionsclosed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluateSamplea group of customers who represent the customers of interest in a research studyExperimental research (experiment)a type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variableDataraw number or factsInformationorganized, analyzed, interpreted data that offer value to marketersChurnthe number of consumers who stop using a product or service, divided by the average number of consumers of that productGeographic segmentationthe grouping of consumers on the basis of where they liveDemographic segmentationthe grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and educationPsychographicsused in segmentation' delves into how consumers describe themselves; allows people to describe themselves using those characteristics that help them choose how they occupy their time (behavior) and what underlying psychological reasons determine those choices.Self-valuegoals for life, not just the goals one wants to accomplish in a day; a component of psychographics that refers to overriding desires that drive how a person lives his or her lifeSelf-conceptthe image a person has of him or herself; a component of psychographicsLifestylesa component of psychographics; refers to the way a person lives his or her life to achieve goalsVALSa psychographic tool developed by SRI Consulting Business Intelligence; classifies consumers into eight segments: innovators, thinkers, believers, achievers, strivers, experiencers, makers, or survivorsGeodemographic segmentationthe grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristicsBenefit segmentationthe grouping of consumers on the basis of the benefits they derive from products or servicesBehavioral segmentationa segmentation method that divides customers into groups based on how they use the product or service. Some common behavioral measures include occasion and loyaltyOccasion segmentationa type of behavioral segmentation based on when a product or service is purchased or consumedLoyalty segmentationstrategy of investing in loyalty initiatives to retain the firm's most profitable customersUndifferentiated targeting strategya marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, wit no need to develop separate strategies for different groupsDifferentiated targeting strategya strategy through which a firm targets several market segments with a different offering for eachConcentrated targeting strategya marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market's needsMicromarketingan extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs; also called on-to-one marketingOn-to-one marketingsee micromarketingValue propositionthe unique value that a product or service provides to its customers and how it is better than and different from those of competitorsPositioninginvolves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing productsValuereflects the relationship of benefits to costs, or what the consumer gets for what he or she givesPerceptual mapdisplays, in two or more dimensions, the position of products or brands in the consumers mindIdeal pointsthe position at which a particular market segment's ideal product would lie on a perceptual map