Marketing Chapter 9: New-Product Development

The process of creating new products by buying existing ones, patents, or licenses to manufacture someone else's product.

The process of developing original products, improving existing ones, modifying them, and creating new brands based on the company's internal research and development.

The process of identifying and eliminating weak product ideas early in the development process, focusing on real needs and opportunities.

A detailed description of a proposed product that describes its features, benefits, and intended target market. It's like a blueprint for a product before it's actually developed.

A structured framework used in idea screening to evaluate the viability of a new product idea by asking three key questions: Is it real? Can we win? Is it worth doing?

The first stage of the new product development process where the company searches for and generates new product ideas. This can involve internal brainstorming or seeking inspiration from external sources.

Internal sources of new product ideas are found within the company itself, such as R&D teams, management, staff, and internal innovation programs.

External sources of new product ideas come from outside the company, such as customers, competitors, suppliers, distributors, and outside design firms.

The development process where different company departments collaborate closely in cross-functional teams. Teams work simultaneously on various stages to save time and improve effectiveness.

A systematic approach to collecting, evaluating, and managing new product ideas. It emphasizes a structured and organized process to foster innovation and a culture of continuous improvement.

The stages a product goes through from its introduction to the market until its eventual decline. It includes stages like introduction, growth, maturity, and decline, each with its own unique characteristics and strategies.

A style that is widely accepted and popular during a specific period, often associated with fashion trends. It has a longer lifespan than a fad.

A temporary period of intense popularity and sales for a product or brand, often driven by consumer excitement and a quick surge in interest.

A marketing method where a company tests a new product in a small, representative market to gauge its performance before launching it nationwide.

A faster and less expensive alternative to standard test markets that involves a panel of stores agreeing to carry new products for a fee.

A simulated shopping environment where researchers measure consumer interest in a new product and its competitors to predict potential sales.

The final stage of the new product development process where the company introduces the product to the market.

A way to manage new product development that focuses on creating solutions to customer problems and enhancing their experiences.

A sequential approach to new product development where departments work separately to complete each stage before passing it along to the next.

New product development that prioritizes customer focus, teamwork, and a systematic approach.

The process of finding new ways to address customer problems and improve their experiences with a product.

How consumers view a product, either currently existing or something they might buy in the future.

The process of testing new product ideas with potential customers to see if they are interested and willing to buy.

This marketing strategy involves the initial plan for launching a new product into the market. It outlines the target customer, promises made about the product, and goals for sales, market share, and profits.

A thorough examination of projected sales, costs, and profits to ensure they align with the goals of the company.

The stage in the new product development process where one or more physical versions of the product are created and tested. This often involves the research and development team.

This involves introducing the product and its marketing plan into a more realistic marketplace by targeting specific groups of customers. The marketer gains experience in testing the product and marketing program before full product launch.

The first stage of the product life cycle where a new product is launched. It's characterized by slow sales growth, high costs, and little to no profits.

The stage where sales and profits accelerate as consumers become aware of the product. More competitors enter the market, and the price may stabilize or drop to increase volume.

The stage where sales growth slows down, competition intensifies, and profits may stabilize or decline. Companies focus on maintaining market share and differentiating their product.

The final stage where sales decline, profits fade, and the product is eventually withdrawn from the market. Companies may choose to maintain, harvest, or drop the product.

A strategy during the maturity stage where a company focuses on expanding the market for their product, targeting new customer segments, or finding new uses.

A strategy during the maturity stage where a company focuses on modifying its product to attract new customers, improve its features, or enhance its design.

A strategy during the maturity stage where a company focuses on adjusting elements of its marketing mix, like pricing, promotion, distribution, or product offerings.

A strategy during the decline stage where a company continues to support the product with minimal effort and resources, hoping for residual sales.