Term
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Definition
| testing where the firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended |
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Definition
| uses potential consumers, who examine the product prototype in a "real use" setting to determine its functionality, performance, potential problems and other issues specific to its use |
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Definition
| firms with products in this stage either position themselves for a niche segment of diehard consumers or those with special needs or they completely exit the market |
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Definition
| the process by which the use of an innovation spreads throughout a market group, over time and over various categories of adopters |
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Definition
| marked by a growing number of product adopters, rapid growth in industry sales and increases in both the number of competitors and the number of available product versions |
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Term
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Definition
| the process by which ideas are transformed into new products and services that will help firms grow |
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Term
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Definition
| for a new, innovative product or service that usually starts with a single firm, and innovators are the ones to try the new offering |
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Definition
| characterized by the adoption of the product by the late majority and intense competition for market share among firms |
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Term
| Pioneers or Breakthroughs |
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Definition
| new product introductions, especially new-to-the-world products that create new markets |
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Term
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Definition
| conducted by firms before they actually bring a product/service to market to determine how many customers will try and then continue to use the product/service according to a small group of potential consumers |
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Term
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Definition
| defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning |
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Term
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Definition
| the first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes- sometimes even crafted individually |
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Term
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Definition
| involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitors' patents, if any exist |
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Definition
| introduces the offering to a limited geographical area prior to national launch |
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Term
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Definition
- satisfy the changing needs of consumers
- add value to the firm
- diversify firm's risk
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Term
| Factors affecting Product Diffusion |
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Definition
- compatibility
- observability
- trialability
- relative advantage
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Term
How Firms Develop New Products:
1. Idea Generation |
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Definition
development of viable new product ideas from:
- competitor's products
- customer input
- internal R&D
- R&D consortia
- licensing
- brainstorming
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Term
How Firms Develop New Products
2. Concept Testing |
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Definition
| testing the new product idea among a set of potential customers |
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Term
How Firms Develop New Products
3. Product Development |
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Definition
| development of prototypes and/or the product |
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Term
How Firms Develop New Products
4. Market Testing
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Definition
| testing the actual products in a few test markets |
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Term
How Firms Develop New Products
5. Product Launch
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Definition
| full-scale commercialization of the product |
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Term
How Firms Develop New Products
6. Evaluation of Results
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Definition
| analysis of the performance of the new product and making appropriate modifications |
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Term
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Definition
- high product development costs
- often the source of technological products
- often the source of breakthrough products
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Term
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Definition
- lower costs and risks; firms join together
- form research consortiums
- benefits spread to all firms
- ex; pharmaceutical industry research
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Term
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Definition
- firms purchase the rights to technology or ideas from other research- intensive firms
- university research centers also provide such licenses
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Term
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Definition
- groups work together to generate ideas
- no idea can be immediately dismissed
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Term
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Definition
- as much as 85% of new business to business products come from customers
- lead users modify existing products according to their own specific needs
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Term
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Definition
- concept is a brief written description of the product
- customers reactions determine whether or not it goes forward
- triggers the marketing research process
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Term
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Definition
- customers exposed
- customers surveyed
- firm makes decision
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Term
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Definition
- mini product launch
- more expensive than premarket tests
- market demand is estimated
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