Term
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Definition
new to the world
to the market
producer
seller
or combination |
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Term
New to the world
discontinuous innovations |
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Definition
entirely new product
represent smallest category of new products |
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Term
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Definition
not previously offered
allow it to enter an established market |
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Term
| example of new product lines |
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Definition
| moleskines first products were simple back black covered journals, expanded into pens, travel bags |
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Term
| additions to existing product lines |
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Definition
| new products that supplement a firms established line |
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Term
| example of addition to existing product line |
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Definition
| nintendo added WII U which is a new controller |
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Term
| Improvements or revisions of existing products |
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Definition
| new and improved product may be significantly or only slightly changed |
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Term
| example of improvements or revisions of existing products |
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Definition
| PG new dry max technology for pampers swaddlers and cruisers diapers |
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Term
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Definition
| existing products targeted at new markets or market segments, or ones repositioned to chnage the current markets perception of the product or company which may be done to boost declining sales |
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Term
| example of repositioned products |
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Definition
| spanish leather goods brand loewe repositioned the product for simplicity with a leather version of a brown paper shopping bag without tassel |
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Term
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Definition
| refers to products that provide performance similar to competing brands at a lower price |
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Term
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Definition
| hp office jet with scanner, copier, and printer, fax |
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Term
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Definition
| product perceived as new by a potential adopter, doe snot matter if new tot he world or some other category of new product, it is an innovation in this context |
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Term
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Definition
| process by which the adoption of an innovation spreads |
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Term
| 5 categories of diffusion process |
|
Definition
innovators
early adopters
early majority
late majority
laggards |
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Term
|
Definition
the first 2.5%
eager
obsessed
higher incomes
more active outside well educated
venturesome |
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Term
|
Definition
13.5%
adopt early in the product's life cycle
group norms and values
more oriented to local community
opinion leaders
respect of others is a dominant characteristic |
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Term
|
Definition
34%
weighs the pros and cons
more likely to collect more information
unlikely to be opinion leaders
diffusing new ideas
major characteristic deliberateness |
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Term
|
Definition
next 34%
most of the friends have already adopted it
rely on group norms
adoption stems from pressure to conform
word of mouth communication
major characteristic is skepticism |
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Term
|
Definition
final 16%
do not rely on group norms
independent
relies heavily on the past
suspicious of new products |
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Term
| 5 product characteristics used to predict and explain the rate of acceptance and diffusion |
|
Definition
complexity
compatibility
relative advantage
observability
trialability |
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Term
|
Definition
degree of difficulty
more complex the product the slower is its diffusion |
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Term
|
Definition
degree which the product is consistent with existing values and product knowledge
incompatible products diffuse more slowly than compatible products |
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Term
|
Definition
degree which product is perceived as superior to existing subsitutes
ipod can replay more songs than a cd |
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Term
|
Definition
degree to which the benefits or other results of using the product can be observed by others and communicated to target customers
fashion items and automobiles are highly visible and more observable than personal items |
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Term
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Definition
the degree to which a product can be tried on a limited basis
it easier to try new toothpaste than a car |
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Term
| 2 types of communication aid diffusion process |
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Definition
word of mouth
communication from marketers to consumers |
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Term
| word of mouth communication |
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Definition
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Term
| the diffusion model helps guide marketers in developing and implementing promotion strategy |
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Definition
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Term
|
Definition
familiar concepts in marketing
useful marketing management diagnostic tool
general guide for marketing planning in various life cycle stages |
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Term
|
Definition
| used to analyze a brand, a product form, or a product category |
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Term
|
Definition
| usually longer than the plc for any one brand |
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Term
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Definition
longest life cycles
includes all brands that satisfy a particular type of need such as shaving products, passenger automobiles or soft drinks |
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Term
| PLC concept does not ______ |
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Definition
tell managers the length of a products life cycle or its duration in any stage
does not dictate marketing strategy |
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Term
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Definition
| tool to help marketers forecast future events and suggest appropriate strategies |
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Term
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Definition
| plc represents the full-scale launch of a new product into the market place |
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Term
| Example of PLC introductory stage |
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Definition
computer databases for personal use
room deodorizing air conditioning filters
wind powered home electric generators
high failure rate
little competition
frequent modification
limited distribution |
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Term
| Why are marketing costs so high during the introductory stage? |
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Definition
High dealer margins
advertising expenses
production costs
research and development costs |
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Term
| Do sales in the introductory phase increase fast or slow? |
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Definition
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Term
| What determines the length of the introductory phase? |
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Definition
product characteristics
advantages over substitute products
educational effort
management commitment |
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Term
| What is the promotional strategy during the introductory phase? |
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Definition
developing product awareness
informing consumers about the product category potential benefits |
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Term
| Product Life Cycles Stages |
|
Definition
Introductory Stage
growth stage
maturity stage
decline stage |
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Term
|
Definition
| sales grow at increasing rate, and many competitors enter the market, and large companies may start to acquire small pioneering firms |
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Term
| growth stage characteristics |
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Definition
profits rise
emphasis switches from primary demand promotion to aggressive brand advertising and communication
distribution becomes a major key to success |
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Term
| maturity stage characteristics |
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Definition
sales increase at a decreasing rate
new users cannot be added indefinitely
saturation
longest stage of the plc
service and repair assume more of a role
niche marketers start to enter the and narrow the market segment |
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Term
|
Definition
a long run drop in sales is indication
rate of decline is governed by how rapidly consumer tastes change or substitute products are adopted |
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Term
| strategies in decline stage |
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Definition
eliminate all nonessential marketing expenses and let sales decline as more and more customers discontinue purchasing the products
organized abandonment |
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