New Product Development and Product Life Cycle

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

New Product Development

Developing new products through the firm’s own research and development efforts. Requires understanding consumers, markets, and competitors and delivering superior value to customers.

Crowdsourcing

Using external sources (like customers) for new product ideas. Also known as Open-innovation.

Idea Generation

Systematic search for new product ideas, using internal (employees) and external (distributors, suppliers, competitors, customers) idea sources.

Idea Screening

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

R-W-W Framework

A framework for screening new ideas: 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.

Marketing Strategy Development

Creating an initial marketing strategy for a new product, including target market, value proposition, sales goals, and marketing mix.

Business Analysis

Reviewing the sales, costs, and profit projections for a new product to see if they meet company objectives.

Product Development

Developing the product concept into a physical product.

Test Marketing

Introducing the product and its proposed marketing program into realistic market settings before full introduction.

Commercialization

Introducing a new product into the market, deciding when and where to launch.

Customer-Centered New Product Development

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

Team-Based New Product Development

When 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.

Product Life Cycle

The course of a product's sales and profits over its lifetime, including product development, introduction, growth, maturity, and decline stages.

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/brand popularity.

Socially Responsible Product Decisions

Considerations for companies regarding public policy issues, regulations, product quality/safety, and warranties.