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mkt 380 exam 3
Terms in this set (38)
How can design be defined?
"the synthesis of technology and human needs into manufacturable products."
What is the role of design in technology-driven innovation?
to modify the product so it can accommodate the performance characteristics
What is the role of design in market-driven innovation?
Design modifies the product so that it meets customer expectations.
What are the different purposes for which a product can be designed?
Design for Speed to Market
Design for Ease of Manufacture
Design for Differentiation
Design to Meet Customer Needs
Design to Build or Support Corporate Identity
Design for the Environment
What is a product architecture?
The process by which a customer need is developed into a product design
At what step of the product architecture process do you define the "chunks" or "modules?"
Step 2 - Cluster the Schematic Elements
What are "derivative products?"
If chunks or modules can be replaced easily within the product architecture, "derivative products" can be made from the same basic platform as technology, market tastes, or manufacturing skills change
What are the 2 types of prototypes?
-Comprehensive Prototype: complete, fully-functioning, full-size product ready to be examined by customers (necessary to determine how well all the components fit together).
-Focused Prototype: not fully functioning or developed, but designed to examine a limited number of performance attributes or features
What is the difference between industrial designers and design engineers?
-Industrial designers are trained to develop aesthetics, structural integrity, and function.
-Design engineers are technical people who convert styling into product dimensions or specifications
What is co-location?
putting the various individuals or functional areas in close proximity (face-to-face).
What are some types of use testing and their characteristics?
-Alpha testing: done in-house with employees.
-Beta testing: short-term, done at the customer's site.
-Gamma testing: long-term, the item is thoroughly evaluated by the end user. Done if beta testing doesn't meet developer's needs
What happens to Marketing's role when the "I Think We've Got It" phase is reached?
Now, Marketing's role increases as marketing people "rev up" their operations
Why do firms many times go with beta testing instead of gamma testing?
Cost and time considerations; Keeping ahead of competitors
What are the different ways in which a user test can be conducted?
-Monadic test: the respondent tests a single product for a period of time.
-Sequential monadic test: back-to-back monadic tests with the same respondent.
-Paired comparison test: use of the test product is mixed with a competitive product.
-Triangular comparison: similar to paired comparison, but with two competitive products versus one test product.
What is the most expensive and risky stage of the new product development process?
Product commercialization often turns out to be the most expensive and risky part of the new products process due to the financial commitments to both production and marketing once the go-ahead is given
What are "strategic givens?"
They are strategic decisions that may have already been made before we start the strategic launch planning
What are the different types of strategic platform decisions?
-Permanent: "we are in to stay"
-Permanent, but as a bridge to other items -- e.g., platform strategy: "we are in to stay if we meet our goals"
-Temporary: Given firms' tendency to develop streams of products, more and more new products are actually only temporary (examples: cereals or snacks tied to recent children's movies or TV shows).
What type of demand would you seek for a new-to-the-world product? For a product improvement or upgrade? For an entry into an established market?
-Primary demand: for new-to-the-world product
-Replacement demand: for a product improvement or upgrade (new computer chip, new compact car). You want to achieve customer migration to the new version.
-Selective demand: for an entry into an established market. You want to draw market share away from the competition.
What are the factors that affect the diffusion of an innovation?
-Relative Advantage (Google's rapid acceptance by computer users)
-Compatibility (digital cameras are designed to be used much as film cameras)
-Complexity (Apple Newton's handwriting recognition was found to be hard to use)
-Trialability (try a new GPS system at low cost as an add-on with a rental car)
-Communicability (long-term benefits of a decay-preventing toothpaste are impossible to discern at time of purchase)
Who are the first customers to adopt a new product? The last?
The first = Innovators The last = Laggards
What are the different types of branding strategies?
-Individual branding strategy
•No P&G cleaning products carry the P&G name (Tide, Bold, Mr. Clean, etc.)
-Umbrella (family) branding strategy
•Kellogg's uses corporate name as part of all cereal brands.
-Combination branding strategy
•Kraft uses Planters, Di Giorno, Maxwell House as well as Kraft in its brand names.
What is the relationship between the launch cycle and the Product Life Cycle?
The launch cycle is an expansion of the Introductory stage of the PLC
What are the activities taking place in the prelaunch?
-Training of sales and other promotional people
-Building service capability
-Arranging for stocking of the product at the reseller level
-Putting out preannouncements
What is a preannouncement?
A planned sequence of announcements (usually subtle signaling).
What is the beachhead in the launch cycle? What marks its beginning?
•Establishing the Beachhead = This refers to the heavy expenditure needed to overcome sales inertia ("getting the ball rolling").
- The beachhead begins with the Announcement
What is a lean launch?
flexible supply chain system allowing the firm to respond rapidly to sales changes
6. What does postponement in the lean launch consist of? What are its types?
Postponement = Refers to delaying finalization of product form and identity until late in the development process, and delaying commitment of inventory until the last possible moment.
-Time postponement: deploy inventory as late as possible.
-Form postponement: lock in product design as late as possible
What is usually the first step towards adoption of a new product?
Awareness of the product
What are some of the ways that the firm's marketing program can encourage repeat purchases by consumers?
- Keep a ready supply available for the buyer who wants to repeat
- Give long-term discounts
- Find new uses for the item
- Provide continued service
What would be a strong argument for conducting market testing later in the development cycle?
The Scope of Learning and Accuracy would be higher
What effect would possible competitor retaliation have on the length or desirability of market testing?
A very long period of market testing would give competitors more opportunity to be the first to introduce a competing product in the market
What does the Pseudo Sale method of market testing consist of?
asks the customer if they would buy the product if it were actually available
What does the Controlled Sale method of market testing consist of?
the buyer must make a purchase, but it is conducted under controlled conditions. It is still a research method because the product has not been released for general sale.
What does the Full Sale method of market testing consist of?
the firm has decided to fully market the product, but wants to do it on a limited basis to see if everything is working right.
What does the Simulated Test Market method of market testing consist of?
Consists of using mathematical formulas to create a false buying situation and observing what the customer does.
What is minimarket testing?
- Select a limited number of outlets -- each store is a minicity or "minimarket."
- Do not use regular local TV or newspaper advertising, but chosen outlets can advertise it in its own flyers.
- Can do shelf displays, demonstrations.
- Use rebate, mail-in premium, or some other method to get names of purchasers for later follow-up.
What is test marketing? What are its advantages and disadvantages?
-Several test market cities are selected.
-Product is sold into those cities in the regular channels and advertised at representative levels in local media.
>sales force morale
>Cost ($1 mill+)
>Time (9-12 months+)
>hurt competitive advantage
>competitor may monitor test market
>competitor may go national
>Competitor can disrupt test market
What is a rollout? How is it different from test marketing?
-Select a limited area of the country (one or several cities or states, 25% of the market, etc.) and monitor sales of product there. If successful, move to the next area, and so on ("limited marketing").
-Starting areas are not necessarily representative
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