New Product Development and Product Life Cycle

Vocabulary flashcards about new product development, product life cycle, and related marketing strategies.

Internal Development

Acquiring new products through research and development, product innovation, and in-house design and manufacturing.

External Acquisition

Acquiring new products through mergers and acquisitions, licensing, and partnerships or joint ventures.

Product Concept

A detailed version of the product idea, articulated in consumer-relevant terms.

Market Testing

Introducing the product to a limited audience to assess its performance and consumer response.

Commercialization

Launching the product into the broader market with full-scale marketing, distribution, and sales efforts.

Product Lifecycle (PLC)

The stages a product goes through from introduction, growth, maturity, to decline.

Idea Generation

The systematic search for new product ideas from internal and external sources.

Idea Screening

The phase where a large pool of ideas is narrowed down to those with the highest potential, based on factors like problem-solving ability, uniqueness, ease of development, and alignment with company strategy.

Concept Testing

Validating a product idea with potential customers to ensure it meets their needs and has market potential.

Marketing Strategy Development

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

Test Marketing

Testing the product and marketing program in real market conditions to assess performance and consumer response.

Commercialization Phase

Focuses on launching the product, ensuring its market success, and establishing a strong market position.

Agile Framework

An iterative and flexible approach that focuses on continuous improvement and adapting to changes.

Stage-Gate Framework

A structured, step-by-step approach where a project is divided into stages, with gates (decision points) after each stage to assess whether the project should continue or not.

Design Thinking

A human-centered framework focused on understanding the user’s needs and creating innovative solutions through empathy and creativity.

Introduction Stage

The stage when the product is first launched in the market. Sales grow slowly, and costs are high.

Growth Stage

The stage when sales increase rapidly as the product gains acceptance. Profits rise, and competition may start to appear.

Maturity Stage

The stage when the product reaches peak sales. Market saturation occurs, and competition is intense.

Decline Stage

The stage when sales start to decline due to market saturation, technological advancements, or changes in consumer preferences.

Style

A long-lasting trend that may take years or decades to evolve; a broad, enduring aesthetic or cultural trend.

Fashion

Popular trends that have a shorter lifespan compared to styles, often lasting a few years. They are usually influenced by societal changes and cultural movements.

Fad

Short-lived trends that gain quick popularity and fade just as fast. They often lack deep cultural significance and are usually driven by novelty or social media.