Marketing Chapter 12- Developing New Products

Front 1

Innovation

Back 1

The process by which ideas are transformed into new products and services that will help firms grow

Front 2

Diffusion of Innovation

Back 2

The process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and various categories of adopters.

Front 3

Pioneers

Back 3

New product introductions that establish a completely new market or radically changes both the rules of competition and consumer preferences in a market; also called breakthroughs.

Front 4

First movers

Back 4

Product pioneers that are the first to create a market or product category, making them readily recognizable to consumers and thus establishing a commanding and early market share or lead.

Front 5

Innovators

Back 5

those buyers who want to be the first to have a new product or service.

Front 6

early adopters

Back 6

second group of consumers in the diffusion of innovation model, to use a product or service innovation; generally don't like to take as much risk as innovators but instead wait and purchase the product after careful review.

Front 7

Early Majority

Back 7

group of consumers in diffusion of innovation model that represents approximately 34% of the population; they do not like to take risk and tend to wait until bugs are worked out of a particular product or service; few new products and service can be profitable until this large group buys them.

Front 8

Late Majority

Back 8

The last group of buyers to enter a new product market; when they do, the product has achieved its full market potential

Front 9

Laggards

Back 9

Consumers who like to avoid change and rely on traditional products until they are no longer available.

Front 10

Reverse Engineering

Back 10

involves taking apart a competitor's product,analyzing it, and creating an improved product that does not infringe on any patents that exist.

Front 11

Lead users

Back 11

Innovative product users who modify existing products according to their own ideas to suit their specific needs.

Front 12

Concepts

Back 12

Brief written descriptions of a product or service; its technology, working principles, and forms; and what customers needs it would satisfy

Front 13

Concept testing

Back 13

The process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions.

Front 14

Product development

Back 14

entails a process of balancing various engineering, manufacturing, marketing and economic considerations

Front 15

alpha testing

Back 15

firm attempts to determine whether the product will perform according to its design and whether it satisfies the need for which it was intended

Front 16

beta testing

Back 16

potential customers examine a product prototype in a real use setting to determine its fuctionality, performance, and potential problems, and issues specific to its use

Front 17

pre-market test

Back 17

conducted before a product or service is brought to market to determine how many customers will try and then continue to use it.

Front 18

test marketing

Back 18

introduces a new product or service to a limited geographical area prior to national launch

Front 19

trade promotions

Back 19

advertising to wholesalers or retailers to get them to purchase new products often through special pricing incentives

Front 20

product life cycle

Back 20

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.

Front 21

introduction stage

Back 21

stage of product life cycle when innovators start buying the product.

Front 22

introduction stage

Back 22

stage when innovators start buying the product

Front 23

growth stage

Back 23

stage of the product life cycle when the product gains acceptance, demand and sales increase and competitors emerge in the product category

Front 24

maturity stage

Back 24

when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or reposistioning them

Front 25

decline

Back 25

when sales decline and the product eventually exits the market