Product Management and New-Product Development

These flashcards cover essential terms and concepts related to product management and new product development, as discussed in the lecture.

Product Life Cycle

The stages a product goes through from introduction to decline.

Market Introduction

The initial phase of the product life cycle where the product is launched.

Market Growth

The stage in the product life cycle where sales increase and competition emerges.

Market Maturity

The stage where sales level off and profits decline as competition intensifies.

Sales Decline

The last stage of the product life cycle where sales and profits decrease.

Fashion

A temporary period of higher popularity for a product.

Fad

A short-lived trend resulting in rapid popularity and quick decline.

New Product

A product that is either new to the company or to the market.

Continuous Innovations

Minor changes or improvements to existing products without altering the core functionality.

Dynamically Continuous Innovations

Changes that are significant but do not change the overall consumer behavior.

Discontinuous Innovations

Radical changes that require new consumer behavior and create a new market.

FTC Rule

Federal Trade Commission rule stating products must be significantly new and different if marketed as new.

Patent

A legal right granted to an inventor to keep their invention exclusive for a set period.

Consumer Product Safety Act

A federal law aimed at protecting consumers from hazardous products.

Product Liability

Legal liability of manufacturers or sellers for defective products.

Return on Investment (ROI)

A measure used to evaluate the profitability of an investment.

Concept Testing

The process of evaluating a product idea through feedback from potential customers.

Prototype

An early sample or model built to test a concept or process.

Product Managers

Individuals responsible for the strategy, roadmap, and feature definition of a product.

Brand Managers

Managers who oversee the overall perception and strategy of a brand.

Total Quality Management (TQM)

An approach to long-term success through customer satisfaction.

Continuous Improvement

An ongoing effort to improve products, services, or processes.

Empowerment

Delegating decision-making authority to employees to encourage engagement and innovation.

Idea Generation

The first step in the new-product development process where various ideas are gathered.

Screening

The process of evaluating ideas to determine their feasibility and alignment with objectives.

Idea Evaluation

Testing concepts for customer reactions and estimating potential costs and profits.

Development

The step where prototypes are created and the marketing mix is tested.

Commercialization

The final phase of the product development process where the product is launched.

Market Growth Stage

A stage where profits increase due to consumer adoption of the product.

Market Maturity Stage

A stage characterized by intense competition and increased price sensitivity.

Sales Decline Stage

The period when products lose market share and sales decrease.

Pioneer Strategy

Introducing a new product to create a new market segment.

Follower Strategy

Entering the market with a product after its initial introduction by another company.

Intensive Distribution

A strategy aimed at providing a product in as many outlets as possible.

Select Distribution

A strategy where products are sold through a limited number of channels.

Market Segmentation

The process of dividing a market into distinct groups of buyers.

Target Market

A specific group of potential customers that a business aims to reach.

Marketing Mix

The combination of product, price, place, and promotion strategies.

Profitability

The degree to which a business earns more than it spends.

Competitive Advantage

An attribute that allows a company to outperform its rivals.

Cross-Functional Team

A diverse group of individuals from different departments working together on a project.

Team Collaboration

Cooperative work among team members to achieve common goals.

Time to Market

The period taken to develop a product and launch it into the market.

Cost Management

The process of planning and controlling the budget of a business.

Product life cycle

The stages a product goes through from introduction to decline.

Market introduction

The first stage of the product life cycle where the product is launched.

Market growth

The stage where sales increase rapidly and profits rise as the product gains acceptance.

Market maturity

The stage where sales level off and competition increases, leading to price sensitivity.

Sales decline

The last stage of the product life cycle where sales and profits decrease.

Fashion

A currently popular trend or style in the market.

Fad

A short-lived trend that is quickly popularized and then declines.

New product

A product that is new to the market or represents significant improvements.

Continuous innovations

Small incremental improvements to existing products.

Dynamically continuous innovations

Moderate changes that require some consumer learning.

Discontinuous innovations

Major breakthroughs that create entirely new markets.

Federal Trade Commission (FTC)

A federal agency that protects consumers and ensures a competitive marketplace.

Patent

An exclusive right granted for an invention, giving the patent holder the right to exclude others from using the invention.

Consumer Product Safety Act

A law establishing safety standards for consumer products.

Product liability

Legal responsibility of manufacturers and sellers to ensure products are safe.

Return on investment (ROI)

A measure used to evaluate the efficiency of an investment.

Concept testing

The process of evaluating a new idea or concept before full development.

Prototype

A preliminary model of a product used to test concepts or processes.

Product managers

Professionals responsible for the strategy and marketing of a product.

Brand managers

Individuals responsible for the overall perception and marketing of a brand.

Total quality management (TQM)

An organizational approach to improving quality across all operations.

Continuous improvement

An ongoing effort to enhance products, services, or processes.

Empowerment

Granting employees the authority to make decisions and contribute to company processes.