Marketing 341 Ch 8

challenges of PLC

products eventually decline and tastes, technologies, and competition change

aquisiton/new product development

a firm can obtain new products through _________ __or__ ___________

new product development

the development of original products, product improvements, product modifications, and new brands through the firm’s own product development efforts

idea generation

first step in the product development process, the systematic search for new product ideas

crowdsourcing

inviting broad communities of people- customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process

idea screening

second step in the product development process, screening new product ideas to spot good ones and drop poor ones as soon as possible

R-W-W (real-win-worth)

new product screening framework that asks 1) is there a real need and desire for the product?, 2) does the product offer competitve advantage?, 3) does the product fit the company’s overall growth strategy

product concept

a detailed version of the new product idea stated in meaningful consumer terms

concept testing

testing new product concepts with a group of target customers to find out if the concepts have strong consumer appeal

marketing strategy development

designing an intial marketing strategy for a new product based on the product concept

business analysis

a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company’s objectives

product development

developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering

test marketing

the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings

commercialization

introducing a new product into the market

customer-centered new product development

new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences

team-based new product development

new product development in which various company departments closely together, overlapping the steps in product development process to save time and increase effectiveness

product life cycle

the course of a product’s sales and profits over its lifetime

product development

first stage of PLC, the company finds and develops a new product idea during product development, sales are zero, and the company investment costs mount

introduction

second stage of PLC, a period of slow sales growth as the product is introduced in the market, profits are nonexistent in this stage because of the heavy expense of product introduction

growth

third stage of PLC, a period of rapid market acceptance and increasing profits

maturity

fourth stage of PLC, a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers

decline

fifth stage of PLC, the period when sales fall off and profits drop

style

a basic and distinctive mode of expression

fashion

a currently accepted or popular style in a given field

fad

a temporary period of unusually high sales driven by customer enthusiam and immediate product or brand popularity