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MKTG 688
New Product Management
137
Marketing
Undergraduate 4
12/10/2011

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Cards

Term
quality
Definition
concept testing is needed to get first confirmation that assures the quality product that meets a market need
Term
time
Definition
concept testing is needed to get first confirmation that assures the quality product that meets a market need
Term
cost
Definition
concept testing is needed to get first confirmation that assures the quality product that meets a market need`
Term
Pre-Ideation Stage: Product Innovation Charter Before Concept Testing
Definition
Use product innovation charter and market analysis (opportunity identification)
PIC eliminates most new product ideas even before they are developed into concepts **
Most ideas conflict with focus, goals/objectives, guidelines, and/or backgrounds of PIC.
Term
Post-Ideation Stage: Initial Reaction Before Concept Testing
Definition
use initial reaction and concept testing
Initial Reaction Test: Preliminary, inexpensive assessment of product concept through testing customers’ reactions to the selected product concept (still concepts, not prototype)
Term
Final Pre-Development Stage
Definition
Use full screen test on the product’s technical specs and marketability before product development.
Term
Ideas of the following types are excluded from concept testing
Definition
ideas conflicting technology focus
ideas conflicting market focus (no knowledge about customers)
ideas conflicting the level of innovativeness (too much, too little)
ideas wrong on other dimensions: not low cost, too close to certain competitors
Term
market worth
Definition
what is the attractiveness of the new product to the targeted customer population
Term
firm worth
Definition
what benefits and competencies do the new product bring to the firm?
Term
competitive insulation
Definition
can the product’s advantage be maintained against competitive retaliation?
Term
3 purposes of concept testing
Definition
To identify the very poor concept for elimination To estimate the sales or trial rate of the product to project market share and/or revenue/ profit
a. Use buying intention test: likelihood of purchase (definitely would or wouldn’t buy)
b. Does buying intention lead to purchase behavior? To help develop the idea further
a. b/c attributes frequently conflict with each other, trade-off must be made
b. ex. Price and Quality, Speed and quality for combo printer
Term
4 steps of concept testing
Definition
prepare the concept statement (format of concept), define the respondent group, select the response situation, and prepare the interviewing sequence
Term
1. concept statement
Definition
states the difference of the product concept and how that difference benefits the customer or end-user (ex. Combo printers)
Term
2. Define respondent group
Definition
nd stakeholders (ex. customers, channel members, lead users) who provide info on product improvement or purchase likelihood
○ Stakeholders have a stake in the proposed product
○ ex. who are the stakeholders for HP Combo printer?
Term
3. select the response situation
Definition
1) How to reach respondent group for concept testing?
○ (2) Whether to contact individuals or groups? Focus group vs. interview
Term
4. prep interview sequence
Definition
what questions will be answered by respondent group?
○ State new product concept, ask believability, product usage, buying intentions, other info and opinions for product improvement
Term
format concept statement
Definition
must make the new product’s difference clear, claim determinant attributes, offer familiar code, be credible and realistic
○ narrative (verbal) format ○ drawings, diagrams, and sketches (Dr. Im’s preference) ○ models or preliminary prototype: more expensive, good for complex product (vege-fruit
mobile) ○ virtual reality: 3 dimensional images of the concepts
Term
full screen test
Definition
The final low-risk evaluation of the product’s technical specs and marketability before product development
a. It tests product concept using various info received from PIC to concept testing
b. Look at slide: Chapter 10 : The Full Screen to see the graph
Term
market and tech feasibility
Definition
scope: broad
b. participants: consumers and tech people
Term
What are the three outcomes of full screen test?
Definition
Term
*What are the three outcomes of full screen test?
Definition
recycle, proceed and rank order, and reject
Term
recycle
Definition
recycles unacceptable but potential concepts back to concept generation stage
Term
proceed and rank order
Definition
It rank-orders the good concepts to give priority for development
Term
reject
Definition
It rejects inappropriate concepts to prevent “reinventing the wheel” problems
Term
why is protocol is needed
Definition
It helps to answer: “what do marketing and technical departments need to work for delivering the product?”
○ It communicates essentials to all players, helps lead them into integrated actions, directs consistent outcomes with the full screen and financials, and give all players targets to shoot for.
○ Helps manage development and cycle time ○ Helps a development process to be managed and measured by providing requirements
and criteria in words.
Term
quality function deployment
Definition
is a system engineering project control tool for complicated projects started in the Japanese industry is the mechanism for deploying a design quality, reliability, cost and technology throughout the project which is driven by “voice of the customer” is a method for developing a design quality aimed at satisfying the consumer and then translating the consumer’s demand into the appropriate technical requirements to assure the design quality
Term
3 major purposes of QFD
Definition
meeting market needs by using actual customer statements (referred to as the “Voice of the Customer”) its effective application of multidisciplinary teamwork the use of a comprehensive matrix (called the “House of Quality”) for documenting information, perceptions and decisions
Term
3 main benefits of using a QFD
Definition
reduce design time, development cycle and cost, while improving quality emphasize the cross-functional coordination, and
match customer needs with engineering characteristics.
Term
Matrix if HOQ
Definition
it is the first part of the Quality Function Deployment and a matrix between
WHATs (benefits) and HOWs (technologies)
Term
WHATS (benefits)
Definition
it is the first part of the Quality Function Deployment and a matrix between
WHATs (benefits) and HOWs (technologies)
Term
HOWs (technology)
Definition
Engineering Characteristics (ECs) in terms of technologies, performance, and design parameters collected by technical personnel. CAs are translated into technical specifications
Term
Meaning of Square box between elements
Definition
interrelationship matrix
Term
peaked roof
Definition
shows tradeoffs and interactions between Engineering Characteristics (basically
looks at How’s(tech) relationships)
Term
HOQ Application
Definition
Identify ECs that satisfy with CAs through coordination between marketing
and technical personnel (ex. printing speed is needed to satisfy productivity, resolution, and edge sharpness are needed for print quality)
Term
2 types of technical development
Definition
Technical and marketing developments
Term
technical development
Definition
basic research for product specs, prototype development, product design and evaluation, engineering, cost forecast, pilot product and manufacturing
Term
marketing development
Definition
target marketing, positioning, marketing mix design, funding, and sales forecasts and budgeting
Term
what is design?
Definition
the synthesis of technology and human needs into manufacturable products it blends form and function, quality and style, as well as art and engineering
Term
5 purposes for having good design
Definition
aesthetics, manufacturabilty, product use, and product disposal
Term
aesthetics
Definition
well designed products are more attractive
Term
product use
Definition
well designed products are easy to use
Term
manufactorability
Definition
saves time and cost, and enhances quality
Term
servicing
Definition
Well designed products are easy to install, maintain, and repair
Term
disassembly
Definition
well designed products are easy to dissemble for recycle
In summary, a good design is aesthetically pleasing, easy to make and use, reliable, economical to operate and service, and fits recycling standards.
Term
product architecture
Definition
the process by which a customer need is developed into a product design. It provides product platform where customer’s needs are transformed into several product designs (minor). Product architecture is related to establishing a product platform.
Term
derivative products
Definition
can be made from the same basic platform as technology, market tastes, or manufacturing skills change (ex. taurus and sable differ in their design and product augmentation)
Term
prototype
Definition
physical trial product produced from the development process
Term
comprehensive prototype
Definition
A complete, fully-functioning, full-size product ready to be examined by potential customers in product use test -- helps determine how well all components fit together
■ ex, all equipped electronic bicycle to be tested in the product use test
Term
focused prototype
Definition
A not fully functioning or developed but designed to examine a
limited number of performance attributes or features -- helps learn how the product works and how well it will satisfy customer needs
■ ex, a crude working prototype of an electric bicycle to test a few functions, features, and attributes or features
Term
product use testing
Definition
firms provide end-user a product to check whether it satisfies the customer’s needs or to check likeability and purchase likelihood “under normal operating conditions” (ex. use software at home, tire installed for cars)
Term
what are the different names of it?
Definition
Market acceptance test field test user test
Term
alpha testing
Definition
in house test by the technology team inside the firm
Term
beta test
Definition
short-term use test at selected customer sites to test whether the prodcut solves the problems correctly under the normal operating conditions
Term
advantages of beta testing
Definition
less cost and time
Term
limitations of beta testing
Definition
main problem: the short term use test cannot find the long term danger and risk, if it is done too late, it is hard to change design or if changes are made: launch will be delayed ■ if it is done too early, no real problems can be identified -- it eventually hurts a
firm’s reputation
Term
gamma test
Definition
involves thorough life-cycle use test and evaluations of the new product by the end user, the product muse solve the customer problems regardless of time spent (ex. new drug test)
○ it’s an ideal product use test, where the item is put through its paces and thoroughly evaluated by the end user
Term
gamma advantage
Definition
accurate and thorough
Term
Gamma Limitations
Definition
too much cost & time
Term
3 modes of use testing
Definition
monadic, paired, triangular tests (except for sequential monadic test).
Term
objective of use testing
Definition
What do mgrs want to know from the product use test? (major quality prob,
purchase likelihood, or satisfaction)
Term
which user group to contact
Definition
lab personnel, experts, employees, stake-holders
Term
how to reach user group
Definition
■ Mode of contact (mail vs. personal)
■ Individual vs group: Prefer individual over group.. why?
■ Location: point of use (home or office) vs central location (test center, theatre)
Term
identity disclosure
Definition
whether to disclose the brand and manufacturer
■ use blind test to avoid halo-image effects from the previous images
■ use both (a blind first followed by a branded test) to examine the change in the
perception of the branded new product
Term
degree of explanation
Definition
How much explanations and instructions to give
■ no comment, commercial (same as they will get in commercial stage) or full explanation
Term
degree of control over use
Definition
How much supervision is needed?
■ supervised (total control) to get accurate data without dangerous misuse
■ unsupervised (more natural setting) to get natural
Term
Mode of test
Definition
how to conduct test
Term
monadic test
Definition
the respondent tests a single product for a single period of
time: “try this and tell me how you like it”
● ex. fax, email that network externality
Term
paired comparision
Definition
use the new product along with the existing product (market leader).: “try these two brands, then tell the difference. Which one do you prefer?”
● ex. Pepsi vs Coke
Term
triangular approach
Definition
a new product is tested along with the other two
competitors: “Try these three brands, then tell the difference, how would you rank them based on your preference?”
● ex. Nike vs. Reebok vs. Adidas
Term
2 main types of launches
Definition
(1) Technical launch and (2) marketing launch
Term
technical launch
Definition
○ Build regular production capability
○ Initial runs
○ Review initial product and process
○ Production scale-up
Term
marketing launch
Definition
○ Complete augmented product requirements
○ Finalize marketing plan
○ Create Launch plan
○ Develop and test implementation components
○ Create post launch management plan
Term
what do we do in launch planning
Definition
It sets up-front strategic planning for product commercialization Define strategic purpose and competitive positioningOften called marketing plan or marketing program
Note that launch is the most expensive and risky part of NPD processes due to financial commitment
Term
2 levels of decisions on commercialization
Definition
strategic launch decision (strategic platform decision and strategic action decision) + tactical decisions
Term
strategic launch decisions
Definition
They are made before building the marketing plan when starting product development process. Influence tactical decisions.
○ Strategic Platform Decisions: set overall tones and direction (ex. aggressive or cautious commercialization)
○ Strategic Action Decisions: define whom we are going to sell to and how (ex. target marketing -- find market segment)
Term
tactical decisions
Definition
marketing mix decisions that define how we implement the strategic launch decision (ex. how intensively we want to use 4P’s of marketing?)
Term
strategic givens
Definition
Corporate or team decisions made earlier, at PIC of product protocol specification -- Hard and expensive to change
Term
type of demand sought: Primary VS Selective demand
Definition
Demand for product category vs. demand for brands (ex. HDTV -- Sony, Pasanoc, Samsung, Toshiba)
○ Replacement demand: existing customers are encouraged to “mitigate” to new version of product (ex. Microsoft Office 2006 from Office 2004)
Term
Permanence: Permanent VS temporary introduction
Definition
Introduce the product for permanent or temporary changes
■ ex. New generation HDTV for permanent changes for a decade vs variation of
snack/ice cream for temporary change for a year
Term
aggressiveness VS cautious entry
Definition
Depends on (1) invest a lot vs. little and (2) risk taking or averse (ex. Microsoft VS. new software company)
Term
competitive advantage
Definition
Need product differentiation in terms of quality, cost and time.
○ 3 Factors of Competitive Advantage (Dr. Im’s Study): Cost efficiency, product quality,
product differentiation (speed does not matter)
Term
How soon to replace without cannibalizing
Definition
Butt-on (replace immediately for innovators) or Roll-in and roll-out (gradual introduction for imitators) Microsoft Operating System vs. Adobe Acrobat Readers
○ The more innovative firms tend to cannibalize their own products (ex. Microsoft, Apple)
Term
3 factors to determine when to launch next generation product
Definition
■ Competitive environment
■ Customer Expectations
■ Profit margins (still make money? Niche marketing)
Term
competitive relationship
Definition
Think about retaliation by major market players (ex. Microsoft vs. Linux)
Term
scope and speed of market entry
Definition
Rapid, fully-committed VS cautious gradual roll-out (risk involved)
Term
image
Definition
To what degree do we want to change the exiting image of the current products? (ex. Tobacco companies introduce anti-smoking ad and patch-Nicoderm)
Term
alternate ways to segment a market
Definition
end use, geographic and demographic, behavioral and psychographics, benefit segmentation
Term
end use
Definition
How can the product be used? T-shirt used for different sports, gardening, or sleeping
Term
geographic and demographic
Definition
ex. Convertibles in CA or WA, high or middle class
Term
behavioral and psychographics
Definition
values, activities, hobbies, and lifestyle, introvert/extrovert
Term
benefit segmentation
Definition
dentify different segments who seeks for different benefits from the products -- Think of Product (Joint) Space Map (or Perceptual Map)
■ Ex. new soap users for different levels of deodorant or moisture
Term
5 groups of product adopters
Definition
Innovators Early Adopters Early Majority Late Majority Laggards
Term
5 innovation characteristics
Definition
relative advantage, compatibility, complexity,
traialability, and observability
Term
relative advantage
Definition
How superior is the innovation to other products?
Term
compatibility
Definition
Does it fit with current product usage and end-user activity? Is the product discontinuous?
Term
complexity
Definition
Is it complex to learn how to use?
Term
triability
Definition
how easy can we try
Term
observability
Definition
How likely is the product to appear in public place?
Term
venturesomeness
Definition
Degree of willingness to take the new and different opportunities
Term
social integration
Definition
Degree of frequent and extensive contact with others in social system
Term
cosmopolitanism
Definition
Degree of interest above and beyond immediate local issues
Term
social mobility
Definition
Degree of motivation to move upward in social status
Term
previledgedness
Definition
Degree of being better off financially than others in social group
Term
positioning
Definition
how consumers perceive your brand over competitors
Term
2 types of positioning
Definition
attributes and surrogates
Term
attributes
Definition
feature (ex. web phone), function (surfing web & making call) and benefit (save time, mobile)
Term
surrogates
Definition
■ Endorsement: Sports equipment sponsored by Tiger Wood
■ Experience: Beer since 1890 (long history)
■ Reputation: Playstation made by Sony
Term
final product is composed of
Definition
○ Core benefits: organize schedules
○ The physical product and service sequence
○ The packaging
○ Pre- and Post-sale service
○ The intangibles: Brand, image
Term
defining brand
Definition
word or symbol associated with the product -- marketing term
Term
generic brand
Definition
Kleenex, Rollerblade
Term
advantages of generic brands
Definition
Easy to remember, have high brand equity
Term
disadvantages of generic branding
Definition
Becomes a product category name, not a brand name
Term
trade dress
Definition
A wide range of product identifier that includes packaging (Gateway), product color (Coke and Santa), decor (Starbucks interior)
Term
private trade dress
Definition
ex Safeway cola
Term
brand equity
Definition
s the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name
Term
5 ways brand equity provides value
Definition
high brand loyalty, high brand awareness, high perceived quality, better brand association, other brand assets
Term
high brand loyalty
Definition
Reduced marketing costs, increased trade leverage
Term
high brand awareness
Definition
Easier to make brand associations, increased liking and
familiarity
Term
high perceived quality
Definition
Supports quality positioning and higher price strategy
Term
better brand association
Definition
Creates positive image, helps customer process
information
Term
other brand assets
Definition
Patents or trademarks, strong channel relationships
Term
how does brand equity provide value to customers
Definition
○ assists in customer information processing
○ increases confidence in purchase
○ increases satisfaction in product use
Term
how does brand equity provide value to firm
Definition
○ Increases effectiveness of marketing programs
○ Increases customer loyalty and trade leverage
○ Facilitates brand extensions
○ Is a source of competitive advantage
Term
brand extension
Definition
family brands
Term
why can brand extension be good
Definition
■ it can provide sustainable competitive advantage
■ Can be used to sell family brands
Term
why can brand extension be bad
Definition
some product categories do not work for brand extension
Term
4 functions of packaging
Definition
Containment to transport
Protection from mishandling
Safety from causing injury: Hazardous product Inform and persuade
Term
Creativity article major objectives and research questions
Definition
(1) whether market orientation facilitates or inhibits creativity, (2) whether creativity influences NP performance, and (3) how to define and
measure creativity in the NP development and launch contexts
Term
creativity article: Major variables (dimensions) to test: what are the three dimensions of market orientation
Definition
customer orientation, competitor orientation, cross-functional integration
Term
creativity article: what are the 4 dimensions of NP and MP creativity
Definition
NP novelty, NP meaningfulness, MP novelty, and
MP meaningfulness.
Term
creativity article: what are the 3 dimensions of new product performance?
Definition
market performance outcome, financial performance outcome, qualitative performance outcome
Term
creativity article: (3) What do the authors try to examine through the major model (in figures)?
Definition
Figure A: The relationship between NP creativity and Mp creativity and
its correlation between different variables (customer orientation, competitor orientation, cross-functional integration on the left and market performance outcome, financial performance outcome, qualitative performance outcome on the right) Figure B: the relationship between the 4 dimensions of NP and MP creativity (same variables mentioned before)
Term
Trek tech
Definition
discusses how our technology now looks like gadgets straight out of star trek
Term
QFD
Definition
method to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process.”
Term
dirt defeats Robot Vacuum
Definition
● talks about how the roomba is not as popular as once hoped due to its low function and high price
● is more of a novelty device than a functional one
Term
Wii Games
Definition
● talks about how Wii games can be used to help rehabilitate people
● people may be more motivated to do this because it is fun and helpful
Term
most popular toys
Definition
● certain toys are cyclical (Trolls)
● Some are classic (crayola, Barbie)
● Some are combination of failed games (Scrabble)
● Some are huge and then fade quickly (Ferbie)
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