| A | B |
|---|
| new product | a product new to a company or any recently introduced product that offers some benefit that other products do not |
| Discontinuous innovation | A product so new that no previous product performed an equivalent function and requires the development of new consumption or usage patterns |
| Product life cycle | Often a graphical marketing management concept that traces a products sales history. |
| 4 stages of Product life cycle | Introduction, growth, maturity, and decline |
| Introduction stage | first stage of the product life cycle during which the new product is attempting to gain a foothold in the market |
| Growth stage | second stage of the product life cycle where sales increase at an accelerating rate |
| Maturity stage | third stage of the product life cycle where sales increase at a decreasing rate and the product begins to lose market acceptance and competition is intense |
| Decline stage | Stage in product life cycle where product loses market acceptance because of such factors as diminished popularity, obsolescence, or market saturation |
| Adoption process | mental and behavioral stages through which a consumer passes before making a purchase or placing an order |
| Stages of Adoption process | Awareness, interest, evaluation, trial, and adoption |
| Diffusion process | spread of a new product through society |
| Innovator | first group of consumers to buy a new product |
| Early adopter | the group of consumers who purchase a product soon after it has been introduced, buy after the innovators have purchased it |
| Early majority | the group of consumers, usually solid, middle-class people, who purchase more deliberately and cautiously than early adopters did |
| Late majority | the group of consumers who purchase a product after the early majority, when the product is no longer perceived as risky |
| Laggard | the group of final adopters in the diffusion process |
| Nonadopter | the group of consumers who never buy a particular new product or adopt a particular new style |
| Product modification | altering or adjusting of the product mix, typically influenced by the competitive nature of the market and by changes in the external environment |
| Cost reduction strategy | a product strategy that involves redesigning a product to lower production costs |
| Repositioning strategy | A product strategy that involves changing the product design, formulation, brand image, or brand name to alter the products competitive position |
| Total quality management strategy | a product strategy that emphasizes market-driven quality, also called a quality assurance strategy |
| Product enhancement | the introduction of a new and improved version of an existing product, intended to extend the products life cycle by keeping it in the growth stage |
| Dynamically continuous innovation | product that is different from previously available products but that does not strikingly change buying or usage patterns |
| Continuous innovation | a new product that is characterized by minor alterations or improvements to existing products and that produces little change in consumption patterns |
| Five characteristics influence a new products chances | relative advantage, compatibility with existing consumption patterns, trialability, observability, and simplicity of usage |
| Relative advantage | the ability of a product to offer clear-cut advantages over competing offerings |
| Trialability | the ability of a product to be tested by possible future users with little risk or effort |
| Trial sampling | the distribution of newly marketed products to enhance trialability and familiarity; giving away free samples |
| Observability | the ability of a product to display to consumers its advantages over existing products |
| Simplicity of usage | ease of operation. This product benefit can offset any complexity in the product itself |
| Idea generation stage | stage in new product development in which a marketer engages in a continuing search for product ideas consistent with target market needs and the organizations objectives |
| Screening stage | the stage in new product development in which a marketer analyzes ideas to determine their appropriateness and reasonableness in relation to the organizations goals and objectives |
| Business analysis stage | stage in new product development in which the new product is reviewed from all organizational perspectives to determine performance criteria and likely profitability |
| Development stage | stage in the new product development where a new product concept is transformed into a prototype. Stage where basic marketing strategy also develops |
| Concept testing | research procedures used to learn consumers reactions to new product ideas. Consumers presented with an idea are asked if they like it, would use it, would buy it, and so on |
| Test marketing | controlled experimental procedure in which a new product is tested under realistic market conditions in a limited geographical area |
| Commercialization | the stage in new product development in which the decision is made to launch full-scale production and distribution of a new product |
