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marketing300chap11
| Question | Answer |
|---|---|
| Innovation | the process by which ideas are transformed into new products and services that will help firms grow |
| diffusion | of innovation the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters |
| pioneers | new product introductions that establish a completely new market or radically change both the rules of competition and consumer preferences in a market; also called breakthroughs |
| breakthroughs | see pioneers |
| first movers | 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 lead |
| Innovators | those buyers who want to be the first to have the new product or service |
| early adopters | the second group of consumers in the diffusion of innovation model, after innovators, 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 |
| early majority | a group of consumers in the diffusion of innovation model that represents 34% of the pop.; members don’t like risk and wait until bugs are worked out of a particular product; few new products and services can be profitable until this large group buys them |
| late majority | the last group of buyers to enter a new product market; when they do, the product has achieved its full market potential |
| Laggards | consumers who like to avoid change and rely on traditional products until they are no longer available clinical trial |
| reverse engineering | involves taking apart a competitor’s product, analyzing it, and creating an improved product that does not infringe on the competitor’s patents, if any exist |
| lead user | innovative product users who modify existing products according to their own ideas to suit their specific needs |
| concepts | brief written descriptions of a product or service; its technology, working principles, and forms; and what customer needs it would satisfy |
| concept testing | 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 |
| product development | also called product design; entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product’s form and features or a service’s features |
| product design | see product development |
| Prototype | the first physical form or service description of a new product, still in rough or tentative form, that has the same properties as a new product but is produced through different manufacturing processes, sometimes even crafted individually |
| alpha testing | an attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended; occurs in the firm’s research and development (R&D) department |
| beta testing | having potential consumers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems, and other issues specific to its use |
| premarket tests | conducted before a product or service is brought to market to determine how many customers will try and then continue to use it |
| test marketing | introduces a new product or service to a limited geographical area (usually a few cities) prior to a national launch |
| trade promotions | promotions to wholesalers or retailers to get them to purchase the new products |
| introductory price promotions | short-term price discounts designed to encourage trial |
| trade show | major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry |
| manufacturer’s suggested retail price (MSRP) | the price that manufacturers suggest retailers use to sell their merchandise |
| slotting allowance | fees firms pay to retailers simply to get new products into stores or to gain more or better shelf space for their products |
| product life cycle | 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 |
| introduction stage | stage of the product life cycle when innovators start buying the product |
| growth stage | stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge in the product category |
| maturity stage | stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them |
| decline stage | stage of the product life cycle when sales decline and the product eventually exits the market |
Created by:
Jylkasonga
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