marketing

Innovation

The process of transforming ideas into new products and services to aid firms in growth.

Diffusion of Innovation

The spread of the use of a new product or service throughout a market group over time and across different categories of adopters.

Pioneers

New product introductions that establish a new market or significantly change competition rules and consumer preferences.

First Movers

Product pioneers who are the first to create a market or product category, gaining early market share.

Innovators

Buyers who are eager to be the first to adopt a new product or service.

Early Adopters

Consumers who follow innovators in adopting a new product or service after careful consideration.

Early Majority

A group representing about 34% of the population that waits for products to be established before adopting them.

Late Majority

The last group to adopt a new product, signaling the product has reached its full market potential.

Laggards

Consumers who resist change and stick to traditional products until they are no longer available.

Reverse Engineering

Disassembling a competitor's product to create an improved version without infringing on patents.

Lead Users

Innovative product users who modify existing products to fit their specific needs.

Concepts

Brief descriptions of a product or service, including technology, working principles, forms, and customer needs it satisfies.

Concept Testing

Presenting a product or service concept to potential buyers to gather their reactions.

Product Development

Balancing engineering, manufacturing, marketing, and economic considerations to develop a product or service.

Prototype

The initial physical form of a new product, produced through different processes, to test its properties.

Alpha Testing

Assessing if a product performs as intended in the research and development phase.

Beta Testing

Having potential consumers test a product prototype in real-use settings to evaluate functionality and potential issues.

Premarket Test

Conducted before a product launch to gauge customer interest and usage.

Test Marketing

Introducing a product in a limited area before a national launch.

Trade Promotions

Advertising to wholesalers or retailers to encourage the purchase of new products, often through special pricing.

Introductory Price Promotions

Short-term price discounts to stimulate trial of new products.

Trade Show

Events where buyers explore products and services offered by potential suppliers in an industry.

Manufacturer's Suggested Retail Price (MSRP)

The price recommended by manufacturers for retailers to sell their products.

Slotting Allowance

Fees paid to retailers to secure shelf space for new products.

Product Life Cycle

Stages new products move through in the market, guiding marketing strategies.

Consumer Scanner

Differentiates qualitative and quantitative data collection methods.

Core Customer Value

Basic problem-solving benefits sought by consumers.

Actual Product

Physical attributes of a product, including brand name, features, quality, and packaging.

Product Mix

All product lines offered by an organization.

Brand Equity

Assets and liabilities linked to a brand that affect its value.

Brand Awareness

Measure of consumer familiarity with a brand and its identity elements.

Perceived Value

Relationship between a product's benefits and its cost.

Brand Repositioning

Changing a brand's focus to target new markets or align with changing preferences.

Packaging Function

Designing and producing product containers for protection, information, advertising, hygiene, and more.

Service Quality

Customers' perceptions of how well a service meets their expectations.

Service Gaps

Discrepancies that occur when operational efficiency overshadows customer understanding.

Branding Strategies

Activities to create a lasting impression in customers' minds when they encounter a brand name.