Podcast
Questions and Answers
In which stage of the product life-cycle are sales at their peak?
In which stage of the product life-cycle are sales at their peak?
What is the primary objective during the growth stage of the product life-cycle?
What is the primary objective during the growth stage of the product life-cycle?
Which customer group is typically associated with the introduction stage of the product life-cycle?
Which customer group is typically associated with the introduction stage of the product life-cycle?
What characterizes the decline stage in terms of profits?
What characterizes the decline stage in terms of profits?
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How does the number of competitors change throughout the product life-cycle?
How does the number of competitors change throughout the product life-cycle?
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What is the primary focus of customer-centered new product development?
What is the primary focus of customer-centered new product development?
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Which of the following best describes team-based new product development?
Which of the following best describes team-based new product development?
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Which step is NOT included in the new product development process?
Which step is NOT included in the new product development process?
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What is the role of systematic new product development?
What is the role of systematic new product development?
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What is a characteristic of the product life cycle?
What is a characteristic of the product life cycle?
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What is the primary objective of developing new products through a firm's own research and development efforts?
What is the primary objective of developing new products through a firm's own research and development efforts?
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Which of the following is NOT an external source of new product ideas?
Which of the following is NOT an external source of new product ideas?
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What is the role of crowdsourcing in new product development?
What is the role of crowdsourcing in new product development?
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What factor is crucial for companies to understand when developing new products?
What factor is crucial for companies to understand when developing new products?
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Which stage is important in managing the new product development process?
Which stage is important in managing the new product development process?
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How do marketing strategies typically change during a product's life cycle?
How do marketing strategies typically change during a product's life cycle?
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What is the significance of understanding competitors in new product development?
What is the significance of understanding competitors in new product development?
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Which of the following is a goal of developing successful new products?
Which of the following is a goal of developing successful new products?
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What are the three parts of a marketing strategy statement?
What are the three parts of a marketing strategy statement?
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What is the primary purpose of business analysis in product development?
What is the primary purpose of business analysis in product development?
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What is a key benefit of test marketing?
What is a key benefit of test marketing?
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Which of the following is an alternative to standard test markets?
Which of the following is an alternative to standard test markets?
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What factors should be considered while commercializing a new product?
What factors should be considered while commercializing a new product?
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Which approach is NOT part of managing new product development?
Which approach is NOT part of managing new product development?
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What is a common drawback of test marketing?
What is a common drawback of test marketing?
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What does product development involve?
What does product development involve?
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What is the primary focus of advertising during the Growth stage of the product life cycle?
What is the primary focus of advertising during the Growth stage of the product life cycle?
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What is a key strategy for sales promotion in the Maturity stage of the product life cycle?
What is a key strategy for sales promotion in the Maturity stage of the product life cycle?
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Which stage comes immediately before the Decline stage in the product life cycle?
Which stage comes immediately before the Decline stage in the product life cycle?
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Which of the following is NOT a consideration for companies regarding socially responsible product decisions?
Which of the following is NOT a consideration for companies regarding socially responsible product decisions?
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What type of adaptations does McDonald's make in major global markets?
What type of adaptations does McDonald's make in major global markets?
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In the Introduction stage, what is a primary objective of product promotion?
In the Introduction stage, what is a primary objective of product promotion?
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Which of the following considerations is related to product quality in socially responsible product decisions?
Which of the following considerations is related to product quality in socially responsible product decisions?
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In which phase of the product life cycle is heavy sales promotion typically used to entice trial?
In which phase of the product life cycle is heavy sales promotion typically used to entice trial?
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What is a significant challenge for international marketers regarding product introduction?
What is a significant challenge for international marketers regarding product introduction?
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Which strategy can companies consider for their international product offerings?
Which strategy can companies consider for their international product offerings?
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Why are service firms leading in international expansion?
Why are service firms leading in international expansion?
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What is an important aspect of socially responsible product decisions?
What is an important aspect of socially responsible product decisions?
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Which stage does marketing strategy NOT change during a product's life cycle?
Which stage does marketing strategy NOT change during a product's life cycle?
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What is a primary consideration in the new product development process?
What is a primary consideration in the new product development process?
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Which aspect is NOT typically considered when internationalizing a product?
Which aspect is NOT typically considered when internationalizing a product?
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What can be a result of poorly managed product adaptation in international markets?
What can be a result of poorly managed product adaptation in international markets?
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Study Notes
Chapter 8: Developing New Products and Managing the Product Life Cycle
- This chapter covers developing new products and managing the product life cycle.
- Key objectives include explaining how companies find and develop new product ideas; listing and defining steps in the new product development process; describing stages of the product life cycle; and discussing additional product issues, such as socially responsible product decisions and international product and services marketing.
Objectives Outline
- Objective 8.1: Explain how companies find and develop new product ideas. Internal and external sources are crucial.
- Objective 8.2: List and define the steps in the new product development process and the major considerations in managing this process.
- Objective 8.3: Describe the stages of the product life cycle and how marketing strategies change during a product's life cycle.
- Objective 8.4: Discuss two additional product issues: socially responsible product decisions and international product and services marketing.
New Product Development Strategy
- Developing new products requires research and development.
- Companies need to understand consumers, markets, and competitors.
- Superior value delivery to customers is paramount.
Idea Generation
- Systematic search for new product ideas is crucial.
- Internal sources include internal social networks and intrapreneurial programs.
- External sources include distributors, suppliers, competitors, and customers.
- Crowdsourcing and open-innovation programs can be effective.
Idea Screening
- Screening new product ideas is essential to identify strong options quickly.
- Methods include using committees and the R-W-W framework (Real, Win, Worth Doing).
Product Concept
- A product idea is a potential product offering.
- A product concept is a detailed version in consumer-understandable terms.
- Product image is how consumers view a product.
Concept Development
- A new product is developed into alternative concepts.
- Each concept's appeal to customers is assessed.
- The best concept is selected.
Concept Testing
- Testing new product concepts with target consumers is critical.
- Companies present concepts symbolically or physically to determine customer responses.
Marketing Strategy Development
- Initial marketing strategy for a new product is defined.
- Elements include target market, value proposition, sales goals, market share targets, profit goals, and budget allocation.
- Long-run sales and profit targets, plus marketing strategies, are also established.
Business Analysis and Product Development
- Business analysis reviews sales, costs, and profit projections to see if they meet company objectives.
- Product development turns the concept into a usable product.
Test Marketing
- Tests the product and marketing plan in realistic market settings before full launch.
- This allows marketers to assess the reaction to the product and its marketing efforts.
- Starbucks' mobile payments app is an example of quick test marketing to assess the app and correct issues before broader rollout.
- Alternatives to standard test markets include controlled tests and simulated tests.
Commercialization
- Introducing the new product into the market is the last step.
- Considerations include the launch location (single location, region, nationally, or internationally).
- The timing of the launch is also a crucial factor.
Managing New Product Development
- Requires a customer-centered, team-based, and systematic approach.
Customer-Centered New Product Development
- Focuses on understanding customer needs and solving their problems.
- The LEGO Group is an example of a company that practices customer-centered development.
Team-Based and Systematic New Product Development
- Various company departments cooperate and overlap steps in the product development process.
- Innovation management systems manage new product ideas efficiently.
Product Life Cycle
- Stages of the product life cycle include: development, introduction, growth, maturity, and decline.
Additional Product Issues
- Socially Responsible Product Decisions: Companies must consider ethical and regulatory standards, product safety, warranties, and public policy issues related to product acquisition or discontinuation.
- International Product and Services Marketing: Companies must determine the degree of standardization or adaptation needed for world markets when expanding globally.
Summary
- New product development includes the entire process from idea generation through commercialization.
- This requires a customer-centered, systematic, and team-based effort to create superior value for customers.
- Understanding the stages of the product life cycle—from introduction to decline—is crucial for effective marketing strategies.
- Socially responsible actions and international product marketing demand considerations for effective global expansion.
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Description
Test your knowledge on the stages of the product life cycle, including sales, objectives, and customer groups. This quiz also covers new product development processes and strategies such as crowdsourcing and systematic approaches. Ideal for marketing and business students.