Developing New Products and Managing the Product Life Cycle

Flashcards covering key vocabulary and concepts from the lecture notes on developing new products and managing the product life cycle.

New Product Development Strategy

Developing new products through the firm’s own research and development efforts

Creating successful new products requires

Understanding consumers, markets, and competitors and Developing products that deliver superior value to customers

Internal idea sources

Internal social networks and Intrapreneurial programs (employees)

External idea sources

Distributors and suppliers, Competitors, Customers

Idea Screening

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

R-W-W framework

Is it real? Can we win? Is it worth doing?

Product idea

An idea for a possible product that the company can see itself offering to the market.

Product concept

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

Product image

The way consumers perceive an actual or potential product.

Concept Testing

Testing new product concepts with groups of target consumers

Three parts of the marketing strategy statement

Describes the target market, planned value proposition, sales, market-share, and profit goals, Determines product’s planned price, distribution, and marketing budget, Develops long-run sales, profit goals, and marketing mix strategy

Business analysis

A review of the sales, costs, and profit projections for a new product To find out whether these factors satisfy the company’s objectives

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

Introduces the product and its proposed marketing program into realistic market settings

Commercialization

Introducing a new product into the market

Customer-centered new product development

focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.

Team-based new product development

Various company departments work together, overlapping the steps in the product development process.

Systematic new product development

Innovation management systems collect, review, evaluate, and manage new product ideas.

Stages of the product life cycle

Product development, Introduction stage, Growth stage, Maturity stage, Decline stage

Style

A basic and distinctive mode of expression

Fashion

A currently accepted or popular style in a given field

Fad

Temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.