MKTG Chapter 11

Marketing Chapter 11 Study Guide
Created Oct 25, 2010
by askinner
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Side ASide B
Advantages of Being First on the Market
Increased sales through longer sales lifeIncreased marginsIncreased product loyaltyGreater...
New Product
a product new to the world, the market, the producer, the seller, or some combination of these
New-to-the-world Product
Create an entirely new market
New Product Lines
these products, which the firm has not previously offered, allow it to enter new or establish...
Additions to Existing Product Lines
includes new products that supplement a firm's established line
Improvements or Revisions of Existing Products
The "new and improved" product may be significantly or slightly changed
Repositioned Products
existing products targeted at new markets or market segments, or repositioned to change the...
Lower-priced Products
products that provide performance similar to competing brands at a lower price
New-Product Strategy
a plan that links the new-product development process with the objectives of the marketing...
Idea Generation
CustomersEmployeesDistributorsCompetitorsVendorsResearch and DevelopmentConsultants
Applied Research
takes these new technologies and tried to find useful applications for them
Basic Research
scientific research aimed at discovering new technologies
Product Development
a marketing strategy that entails the creation of marketable new products; the process of converting...
The two considered most useful for generating new-prodcut ideas are...
BrainstormingFocus Groups
Brainstorming
the process of getting a group to think of unlimited ways to vary a product or solve a problem
Focus-Group
stimulate insightful comments through group interaction
Screening
the first filter in the product development process, which eliminates ideas that are inconsistent...
Concept Test
evaluates a new-product idea, usually before any prototype has been created
Business Analysis
preliminary figures for demand, cost sales, and profitability are calculated
Development
the stage in the product development process in which a prototype is developed and a marketing...
Simultaneous Product Development
a team-oriented approach to new-product development
The Consumer PRoduct Safety Act of 1972
requires manufacturers to conduct a "reasonable testing program" to ensure that their products...
Test Marketing
limited introduction of a product and a marketing program to determine the reactions of potential...
Simulated (laboratory) Market Testing
the presentation of advertising and other promotion materials for several products, including...
Commercialization
The final stage in the new-product development processthe decision to market a product
Adopter
a consumer who was happy enough with his or her trial experience with a product to use it again
Innovation
a product perceived as new by a potential adopter
Diffusion
the process by which the adoption of an innovation spreads
Innovators
almost obsessed with trying new ideas and products
Early Adopters
they rely much more on group norms and values
Early Majority
weighs the pros and cons before adopting a new product
Late Majority
adopts a new product because most of their friends have already adopted it
Laggards
do not rely on group norms, but their independence is rooted in their ties to tradition
Complexity (Product Characteristic)
the degree of difficulty involved in understanding and using a new product
Compatibility (Product Characteristic)
the degree to which the new product is consistent with existing values and product knowledge,...
Relative Advantage (Product Characteristic)
the degree to which a product is perceived as superior to existing substitutes
Observability (Product Characteristic)
the degree to which the benefits or other results of using the product can be observed by others...
Trialability
the degree to which a product can be tried on a limited basis
Product Life Cycle
a biological metaphor that traces the stages of a products' acceptance, from its introduction...
Product Category
all brands that satisfy a particular type of need
Introductory Stage
the first stage of the product life cycle in which the full-scale launch of a new product into...
Growth Stage
the second stage of the product life cycle when sales typically grow at an increasing rate,...
Maturity Stage
the third stage of the product life cycle during which sales increase at a decreasing rate
Decline Stage
the fourth stage of the product life cycle, characterized by a long-run drop in sales


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