Product Life Cycle and New Product Development

These flashcards cover the key concepts related to the Product Life Cycle (PLC) and the process of New Product Development as discussed in the lecture.

What are the stages of the Product Life Cycle (PLC)?

Introduction, Growth, Maturity, Decline.

What is the marketing objective during the Introduction stage of the PLC?

Product awareness.

What happens to the number of competitors in the market during the Growth stage?

More competitors enter the market.

What type of pricing strategy is used in the Introduction stage of the PLC?

A skimming or penetration pricing strategy.

What is the focus of marketing during the Maturity stage of the PLC?

Ensure full product line is available and innovative with new ideas.

Define minor innovation in terms of new products.

Requires no new learning by consumers.

What is a characteristic of high-learning products?

They require significant consumer education and behavior change.

What does the adoption curve illustrate?

It shows the different categories of consumers based on their readiness to adopt new products.

Who are the Laggards in the adoption curve?

They are skeptical individuals who represent the last group to adopt new products.

What is a common barrier to product adoption?

Psychological resistance from consumers.

What is one potential solution for new product failure?

Determine a distinctive and meaningful point of difference for the target audience.

What are the four approaches to New Product Development?

Market Penetration, Market Development, New Product Development, Diversification.

What is the first step in the New Product Development Process?

New product development strategy.

What does test marketing involve?

Testing the product and marketing strategy in the marketplace on a limited scale.

What is the purpose of the commercialization stage in the New Product Development Process?

Launch and fully market the product in the marketplace.