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Marketing Chapter 10

STUDY
PLAY
new product
a product new to the world, the market, the producer, the seller, or some combination of these
new product strategy
a plan that links the new product development process 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
brainstorming
the process of getting a group to think of unlimited ways to vary a product or solve a problem
screening
the first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason
concept test
a test to evaluate the new product idea, usually before any prototype has been created
business analysis
the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated
development
the 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
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 products' target market
commercialization
the decision to market a product
adopter
a consumer who was happy enough with his or her trial experience with a product to use it again
innovation
a product perceived as new by a potential adopter
diffusion
the process by which the adoption of an innovation spreads
product life cycle
a biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death)
product category
all brands that satisfy a particular type of need
introductory stage
the first stage of the PLC in which the full-scale launch of a new product into the marketplace occurs
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 acquiring small pioneering firms, and profits are healthy
maturity stage
the third stage of the PLC during which sales increase at a decreasing rate
decline stage
the fourth stage of the PLC, characterized by a long-run drop in sales