Basic Marketing (Perreault) 19th ed Chapter 9

Product Life Cycle
the stages a really new product idea goes through from beginning to end. 1) Market introduction 2) market growth 3) market maturity 4) sales decline
market introduction
sales are low as a new idea is first introduced to a market. Consumers aren’t look for the product.Needs promotion.
market growth
industry sales grow fast but industry profits rise and then start falling. Innovator begins to make big profiles as more and more customers buy. Competitors start to enter market.Biggest profits for the company at this stage.
sales decline
new products replace the old. price competition from dying products becomes more vigorous.
fashion
currently accepted or popular style
fad
idea that is fashionable only to a certain group who are enthusiastic about it. Short lived.
new product
one that is new in any way for the company concerned.
Federal Trade Commission (FTC)
the federal gov’t agency that polices antimonopoly laws.
Consumer Product Safety Act
(1972) set up the Consumer Product Safety Commission to encourage safety in product design and better quality control.
Product liability
the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products.
concept testing
getting reactions from customers about how well a new-product idea fits their needs.
prototype
an early sample or model built to test a concept
product managers (brand managers)
manage specific products often taking over the jobs formerly handled by an advertising manager.
total quality management (TQM)
the philosophy that everyone in the organization is concerned about quality throughout all of the firm’s activities to better serve customer needs.
Continuous Improvement
a commitment to constantly make things better one step at a time.
Empowerment
giving employees the authority to correct a problem without first checking with management