Shared Flashcard Set

Details

Mkt390
Chapter 11
47
Marketing
Undergraduate 4
11/04/2014
Click here to study/print these flashcards.

Create your own flash cards! Sign up here.

Additional Marketing Flashcards

 

 

Cards

Term
The importance of new products
 Definition
1. New-to-the-world, 2. New Product Lines, 3. Product Line Additions, 4. Improvements or Revisions, 5. Repositioned Products, 6. Lower-priced products.
Term
1. New-to-the-world
 Definition
create an entirely new market and are the smallest category of new products.
Term
2. New Product Lines
 Definition
allow a firm to enter an established market.
Term
3. Product Line Additions
 Definition
include new products that supplement a firm’s established product line.
Term
4. Improvements or Revisions
 Definition
existing products may be significantly or only slightly changed.
Term
5. Repositioned Products
 Definition
are targeted at new markets or market segments.
Term
6. Lower-priced products
 Definition
provide performance similar to competing brands at a lower price.
Term
New product development process
 Definition
-Most companies follow formal new-product development process, consisting of the seven steps.
1.new-product strategy 2.Idea generation 3.idea screening 4.business analysis 5.development 6.test marketing 7.commercialization*new product.
Term
New-product Strategy
 Definition
a plan that links the new-product development process with the objectives of the marketing department, the business unit,and the corporation.
Term
Sources of New-Product Ideas
 Definition
customers-->employees-->distributors-->competitors-->R&D-->consultants-->other experts.
Term
Crowdsourcing
 Definition
a technique that is being used increasingly to generate new product ideas.
Term
Brainstorming
 Definition
the process of getting a group to think of unlimited ways to vary a product or solve a problem.
Term
Focus group
 Definition
the objective of focus group interviews is to stimulate insightful comments through group interaction.
Term
Screening
 Definition
the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason.
Term
A concept test
 Definition
a test to evaluate a new-product idea, usually before any prototype has been created. Often successful for line extensions.
Term
Business analysis
 Definition
in the business analysis stage, the preliminary figures for demand, cost, sales, and profitability are calculated.
Term
Development
 Definition
create of a prototype, sketch a marketing strategy, decide on packaging, branding, and labeling, map out promotion, price and distribution strategy and examine manufacturing feasibility.
the development stage can last a long time and thus be very expensive. It took 10 years to develop Crest toothpaste, 15 years to develop the Polaroid Colorpack cam and the Xerox copy machine, 18 years to develop Minute rice, and 51 years to develop the television.
Term
Simultaneous product development
 Definition
a team-oriented approach to new-product development where all relevant functional areas and outside suppliers participate in the development process.
Term
Test marketing
 Definition
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
Term
Costs of test marketing
 Definition
despite the cost, many firms believe it is better to fail in a test market than in a national introduction. Often takes one year or more, and can cost over $1 million.
Term
Alternatives to test marketing
 Definition
-single-source research using scanner data
-simulated (laboratory) market testing
-Online test marketing
Term
Commercialization
 Definition
ordering materials, production, inventory buildup distribution shipments, sales force training, trade announcements, customer advertising.
Term
Why some products succeed and other fail
 Definition
Products fail for a number of reasons:
-One common reason is that they simply do not offer any discernible benefit compared to existing products.
-Another commonly cited factor in new product failures is a poor match between product features and customer desires.
-Other reasons for failure include overestimation of market size, incorrect targeting or positioning, a price too high or too low, inadequate distribution, poor promotion, or simply, an inferior product.
Term
Product Failure
 Definition
despite the amount of time and money spent on developing and testing new products, a large proportion of new product introductions fails.
Term
New-product success factors
 Definition
listening to customers, producing the best product, vision of future market, getting every aspect right, strong leadership, commitment to new-product development, project-based team approach.
Term
Global marketing questions
 Definition
increasing globalization of markets and of competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.
Term
The spread of new products
 Definition
Diffusion: the process by which the adoption of an innovation spreads.
Innovation: is a product perceived as new by a potential adopter.
Term
Innovators
 Definition
the first 2.5 percent who adopt the product.
Term
early adopters
 Definition
the next 13.5 percent to adopt the product.
Term
early majority
 Definition
the next 34 percent to adopt.
Term
late majority
 Definition
the next 34 percent to adopt.
Term
laggards
 Definition
the final 16 percent to adopt
Term
Product characteristics and the rate of adoption
 Definition
(can be used to predict and explain the rate of acceptance and diffusion of a new product)
complexity; compatibility; relative advantage; observability; trialability.
Term
complexity
 Definition
the more complex the product, the slower is its diffusion.
Term
compatibility
 Definition
incompatible products diffuse more slowly than compatible products
Term
relative advantage
 Definition
the degree to which a product is perceived as superior to existing substitutes
Term
observability
 Definition
the degree to which the benefits or other results of using the products can be observed by others and communicated to target customers
Term
Trialability
 Definition
he degree to which a product can be tried on a limited basis.
Term
Two types of communication aid the diffusion process
 Definition
1. Word-of-Mouth communication among consumers; 2. Communication directly from the marketer to potential adopters
Term
1. Word-of-Mouth communication among consumers
 Definition
Opinion leaders discuss new products. Suppliers of some products, such as professional and health care services, rely almost solely on word-of-mouth communication for new business.
Term
2. Communication directly from the marketer to potential adopters
 Definition
Messages directed toward early adopters should use different appeals than messages directed toward the early and late majority, or the laggards.
Term
Product Life Cycle (PCL)
 Definition
a concept that provides a way to trace the stages of product's acceptance, from its introduction (birth) to its decline (death).
Term
Four stages of the production life cycle
 Definition
introductory stage→ growth stage→ maturity stage→ decline stage.
Term
Introductory Stage
 Definition
represents the full-scale launch of a new product.
Term
Growth stage
 Definition
sales grow at an increasing rate, many competitors enter the market, and larger companies may acquire small pioneering firms.
Term
Maturity Stage
 Definition
begins when sales increase at a decreasing rate, and the market approaches saturation. this is normally the longest stage of the PLC.
Term
Decline Stage
 Definition
the rate of decline depends on how rapidly consumer tastes change or substitute products are adopted. many convenience products and fad items lose their market overnight.
Supporting users have an ad free experience!