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Chapt 10 Marketing
Chapter 10 Marketing Lecture Notes Pt 3
| Question | Answer |
|---|---|
| New-Product Process | consists of seven stages an organization goes through to identify business opportunities and convert them to a salable good or service |
| Stage 1: New Product Strategy Development | Is the stage of the new product process tha defines the role for a new product in terms of the firms overall objectives |
| Stage 2: Idea Generation | Stage of teh new-product process that develops a pool of concepts as condidates for new products, buidling upon the previous stages results |
| Customer and Supplier Suggestions - Idea Generation | use their alespeople to talk directly to its customers and purchasing personnel to its suppliers to discover new product ideas, , look outside the firm for solutions to problems |
| Employee and Co-Worker Suggestions - Idea Generation | Employees may be encouraged to suggest new-product ideas through suggestion boxes or contests |
| Research Development Breakthroughs - Idea Generation | Major source of new products is a firms own research and development |
| Competitive Products - Idea Generation | a firm can purchase and use competitors products to assess their strengths and weaknesses relative to its own offerings and togenerate new-product ideas |
| Universities, Inventors, and Small Technology Firms - Idea Generation | viosnaries outside the firm can be a source f new-product idease |
| Stage 3 Screening and Evaluation | Is the stage of the new-product process that internally and externally evaluates new product ideas to eliminate those tha warrant no further effort |
| Internal Approach - Screening and Evalution | firm evaluates the technical difficult of the proposal and whether the idea meets the objectives defined in the new product strategy development step |
| Customer Experience Management (CEM) | is the process of managing theentirecustomer experence within the firm |
| Marketers must consider employees interactions with customers so that the new services are: | consistently delivered and experienced, clearly differentiated from other services offerings, relevant and valuable to the target market |
| External Approach - Screening and Evalution | concept tests are external evlauations with consumer that consists of preliminary testing of a new product idea rather than an actual product, they rely on written descriptions of the product but may be augmented with sketchs, mockups, or promotional lit. |
| What step in the new-product process has been added in recent years? | New-product strategy development has been added recently by many companies to provide focus for ideas and concepts developed later. |
| What are the main sources of new-product ideas? | and supplier suggestions; employee and co-worker suggestions; R&D laboratories; competitive products; and universities, inventors, and small technology firms. |
| How do internal and external screening and evaluation approaches differ? | In internal screening, company employees evaluate the technical feasibility of new product ideas. In external screening, evaluation consists of preliminary testing of the concept (not the actual product) with consumers. |
| Stage 4 - Business Analysis | stage of the new product process tha specifies the features of the product and the markeing strategy needed tobring it to market and make financial projections |
| Prototype | A full scale operating model of the product |
| Economic Analysis | Profit projections are developed based on estimates of the number of units and teh cost of R&D, production, and marketing |
| Marketing Strategy Review | assessments of the marketing and product synergies related to thecompanys existing operations |
| Legal examination | the new product is studied to determine whther it can be protected with a patent or copyright so tha the technology, product, or brand cannot easily be copied |
| Capacity Managment | integrtes the service component of the marketing mix with efforts to influence consumer demand |
| Off-Peak Pricing | to charge different prices for different times of the day or week to reflect the variations in demand to maximize their return on ivestments (ROI) |
| Stage 5 - Development | Is the stage of thenew-product process that turns the idea on paper into a prototype |
| The ruslts in devlopment is a demonstratable, producible product that: | involves manufacturing the product and performing laboratory and consumer tests, ensure it meets the standards established for it in the protocol |
| Stage 6- Market Testing | is thestage of the new product process thatexposes actual products to prospective consumers under realistic purchase conditions to see if they will buy |
| Market Test | gives the company an indication of potenial sales volume and market share in theest area to generate a company sales forecast, can check other elements of the marketing mix, are time consuming and expensive |
| Stage 7 - Commercialization | is the stage of the new-product process that positions and launches a new product in full-scale production and sales, most expensive stage for most new products |
| A firm may permanently halt the new product launch if: | competitiors introduce a product that leapfrogs thefirms own new product, if cannibalization of its own existing products look significant |
| Regional Rollouts | used to minimize the risk ofr new-product failure, it introduces theproduct sequentially in geographical areas of th US to gradually build up production leavels and marketing activities |
| Speed as a factor in new-product sucess | companies have discovered that speed or time to market is often vital when introducing a new product |
| Parallel Development | involves cross-functional team members who carry out the simultaneous development of oth theproduct and production process from concept to production, reduces product developmen time |
| Fast Prototyping | uses a do it, try it, fix it approach in softwaredevelopment, encouraging continuing improvements even after the initial design |
| How does the development stage of the new-product process involve testing the product inside and outside the firm? | Internally, laboratory tests are done to see if the product achieves the physical, quality, and safety standards; externally, consumer tests are done. |
| What is a test market? | A test market is a city that is viewed as being representative of U.S. consumers in terms of demographics and brand purchase behaviors, is far enough from big markets to allow low-cost advertising, and has tracking systems to measure sales. |
| What is the commercialization of a new product? | Commercialization involves positioning and launching new product in full-scale production and sales and is the most expensive stage for most new products |
Created by:
kkolsch