Principles of Marketing Chapter 11 Key Terms

new product
a product new to the world, the market, the producer, the seller, or some combination of these
new-product strategy
a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
product development
A marketing strategy that entails the creation of new products for present markets.
brainstorming
the process of getting a group to think of unlimited ways to vary a product or solve a problem
screening
the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason
concept test
a test to evaluate a new-product idea, usually before any prototype has been created
business analysis
The second stage of the screening process where 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 strategy is outlined
simultaneous product development
a team-oriented approach to new-product development
test marketing
the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
simulated (laboratory) market testing
the presentation of advertising and other promotional material for sever products, including a test product, to member of the product’s target market
commercialization
Introducing a new product into the market
innovation
A product perceived as new by a potential adopter
diffusion
the process by which the adoption of an innovation spreads
product life cycle (PLC)
a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
product category
all brands that satisfy a particular type of need
introductory stage
the full-scale launch of a new product into the marketplace
growth stage
2nd stage -> sales grow at increasing rate; many competitors enter market; large company may start to acquire small pioneering firms & healthy profi
maturity stage
A period during which sales increase at a decreasing rate
decline stage
A long-run drop in sales.