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18 terms

New product development

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New Product
A product that is new to the world, market, producer, seller or some combination of all of these.
New Product Strategy
A plan that links the new product development with the objectives of the marketing department, the business unit, and the corporation.
Product Development
A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products.
Screening
The first filter in the product development process, which elimintes ideas that are inconsistent with the organizations new product strategy or are obviously inappropriate for some other reason.
Business Analysis
The second filter in the product development process in which preliminary figures for demand, cost, sales and profitability are calculated.
Development
The third stage in the product development process in which a prototype is developed and a marketing strategy is outlined.
Simultaneous Product Development
A team-oriented approach to new product development. (R&D, marketing, engineering, production, suppliers, etc. working together)
Test Marketing
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
Simulated Laboratory Market Testing
The presentation of advertising and other promotion materials for several products, including a test product, to members of the product's target market.
Commercialization
The decision to market a product. (Final stage of product development)
Adopter
A consumer who was happy enough with his/her trial experience to purchase the product again.
Innovation
A product that is considered new to the potential adopter.
Diffusion
The process by which the adoption of an innovation spreads.
Product Life Cycle
The concept that provides a way to trace the stages of a product's acceptance, from its introduction to its decline.
Introductory Stage
The full-scale launch of a new product into the marketplace.
Growth Stage
The second stage of the PLC when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire pioneering firms, and profits are healthy.
Maturity Stage
A period which sales decrease.
Decline
The long-run drop in sales.