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Explain the importance of developing new products
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describe the six categories of new products
New-to-the-World, New Product Linees, Product Line Additions, Improvements or Revisions, Repositioned Products, Lower-Priced Products
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Define Test Marketing
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
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Alternatives to Test Marketing are
- Single-source research using superarket scanner data
- Stimulated (laboratory) market testing
- online test marketing
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Explain the steps in the new-product development process
- Idea generation
- Idea Screening
- Business analysis
- Development
- Test Marketing
- Commercialization
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Define Idea Screening
The first filter in theproduct development process which eleminates ides that are inconsistent with the organization's new product strategy or are inappropriate for some other reason
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Discuss global issues in new-product development
- Develop poduct ofr potential worldwide distribution
- Modify for unique market requirments
- Design products to meet regulations and key marekt requirments
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Define Concept test
A test to evaluate a new product idea, usually before any prototype has been created. often successful for line extensions.
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Explain the diffusion process through which new products are adopted
Communication Aids the Diffusion Process by Word of Mouth, or Direct from Mareter
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New product success factors
- Listenign to customers
- Producing the best product
- Vision of future market
- Strong leadership
- Commitment to new product development
- Project-based team approach
- getting every aspect right
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Define Diffusion
The process by which the adoption of an innovation spreads
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What are the categoreis of Adopters
Innovators, Early Adopters, Early Majority, Late Majority, Laggards
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Explain the concept of product life cycles
A concept that provides a way to trace the stages of a product's acceptance from its introduction (birth) to its decline (death)
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List the traits in teh Introductory Stage of a Product's Life Cycle List 4 (at a time)
- High failure rates
- Litter competition
- Frequent product modification
- Limited distribution
- High marketing and production costs
- Negative profits with slow sales increases
- Promition focuses on awareness and information
- Communication challenge is to stimulate primary demand
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List Traits in the Growth stage of a Products Life Cycle (4 diff ones at a time)
- Increasing rate of sales
- Entrance of competitors
- market consolidation
- initial healthy profits
- aggressive advertising of the differences between brands
- wider distribution
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List Traits in the Maturity Stage of a Products Life Cycle (4 diff ones at a time)
- Sales increase at a decreasing rate
- saturated markets
- annual models appear
- lengthened product lines
- service and repair assume imporant roles
- heavy promotions to consumers and dealers
- marginal competitors drop out
- Niche marketers emerge
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List traits in the Decline Stage of a products Life cycle (3 differnt ones at a time)
- Long-run drop in sales
- Large inventoreis of unsold items
- Elemination of all nonessential marketing expenses
- Organized abandonment
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