Ch. 8 Developing New Products

New product development

The development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts

Idea generation

The systematic search for new product ideas

Crowdsourcing

Inviting broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the new product innovation process

Idea screening

Screening new product ideas to spot good ones and drop poor ones as soon as possible

Product concept

A detailed version of the new product idea stated in meaningful consumer terms

Concept testing

Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal

Marketing strategy development

Designing an initial marketing strategy for a new product based on the product concept

Business analysis

Designing an initial marketing strategy for a new product based on the product concept

Product development

Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering

Test marketing

The stage of new product development at which the product and its proposed marketing program are tested in realistic market settings

Commercialization

Introducing a new product into the market

Customer-centered new product development

New product development that focuses on finding new ways to solve customer problems and create more customer satisfying experiences

Team-based new product development

New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

Product life cycle (PLC)

The course of a product’s sales and profits over its lifetime

Style

A basic and distinctive mode of expression.

Fashion

A currently accepted or popular style in a given field

Fad

A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

Introduction stage

The PLC stage in which a new product is first distributed and made available for purchase

Growth stage

The PLC stage in which a product’s sales start climbing quickly

Maturity stage

The PLC stage in which a product’s sales growth slows or levels off

Decline Stage

The PLC stage in which a product’s sales fade away