Studied by 1 person
new products
one that is new to a company in any way
-if a product is functionally different from existing products in the market or is not marketed in its current form or manner by the company, it can be considered a new product
new product categories
new to market products
new category entries
product line extensions
revamped products
new to product marketings (1)
inventions that have never been seen before and that create a new market
new category entries (2)
involve the introduction of products new to a company but not new to the marketplace
product line extensions (3)
products that extend and supplement a companies already established product line
revamped products (4)
existing products that have been changed in some way
7 stages of new product development
new product strategy development
idea generation
idea screening
business analytics
product development
test marketing
product launch
new product strategy development (s1)
determining the direction a company will take when it develops a new product
idea generation (s2)
involves coming up with a set of product concepts form which to identify potentially viable new products
idea screening (s3)
involves evaluating the ideas to determine whether it fits into the new product strategy
business analysis (s4)
undertaken to determine profitability
product development (s5)
confirms that the product can be made in a way that meets customer needs and generates profit
test marketing (s6)
involves introducing a potential new product to a geographically limited market
product launch (s7)
involves making the product available to the market
risks of new product development
product may prove to be dangerous, defective, or produce less than expected revenue
reduce risks of new product development
listening to the customer carefully
making a commitment to a NPD process
understanding current market trends and anticipating changes in the market
asking the right questions
being willing to fail on occasion
ethical and sustainable issues in new product development
ethical issues
FTC definition of the term “new” -to be called new, the product must be changed in a “functionally significant or substantial respect”
if company chooses not to develop important new products until an existing product has become obsolete or its patent has expired
planned obsolescence- occurs when companies frequently come out with new models of a product that make existing models obsolete
sustainability
built on the concept of sustainable design, philosophy of building products and services in a way that eliminates negative environmental impacts
5 steps of product adoption
awareness
interest
evaluation
trial
adoption
implication of adoption to makers
various new product characteristics affect the adoption rate
competitive advantage, compatibility, observability, complexity, ability of potential new consumers to try products
marketing products internationally: cosmopolitarnism, modernity, similarity of consumers, physical distance
5 stages of products life cycle
product development
introduction- sales increase slowly as firms marketing activities begin to raise awareness of product
growth- brings spike in sales and profits as consumers recognize the products ability to satisfy their needs and wants
maturity- sales and profits begin to decline as competition increases and customers begin to look for the next big thing
decline- sales and profits fall off completely
how product life cycle affect marketing mix
number of products or services a company offers
extent of their distribution
types of promotions
prices charges
product
the specific combination of goods, services, or ideas that a firm offers to consumers
goods
tangible products with physical dimensions
services
intangible products
ideas
intangible and represent formulated thoughts or opinions
4 types of consumer products
Convenience products
shopping products
specialty products
unsought products.
product line
group of related products marketed by the same firm
cannibalization
reduction in sales volume or market share of a company existing product due to the introduction of a new product made by the same company
newness
the level and state of a product being new or different in a market
Note
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