Principles
of Marketing MGT301
VU
Lesson
23
Lesson
overview and learning objectives:
Today's
Lesson is devoted to revision of the
first p of the marketing mix
which is Product.
KEY
TERMS
New-product
development
The
development of original
products, product
improvements,
product modifications, and
new brands
through
the firm's own R&D
efforts.
Idea
generation
The
systematic search for
new-product ideas.
Idea
screening
Screening
new-product ideas in order to spot
good ideas
and
drop poor ones as soon as
possible.
Product
concept
A
detailed version of the
new-product idea stated
in
meaningful
consumer terms.
Concept
testing
Testing
new-product concepts with a
group of target
consumers
to find out if the concepts
have strong consumer
appeal.
Business
analysis
A
review of the sales, costs,
and profit projections for a
new
product
to find out whether these
factors satisfy the
company's
objectives.
Product
development
A
strategy for company growth
by offering modified or
new
products
to current market segments. Developing
the
product
concept into a physical product in order
to ensure
that
the product idea can be
turned into a workable
product.
Commercialization
Introducing
a new product into the
market.
Test
marketing
The
stage of new-product development in
which the
product
and marketing program are tested in
more realistic
market
settings.
Sequential
product development
A
new-product development approach in
which one
company
department works to complete its stage of
the
process
before passing the new
product along to the
next
department
and stage.
Introduction
stage
The
product life-cycle stage in
which the new product
is
first
distributed and made
available for
purchase.
Growth
stage
The
product life-cycle stage in
which a product's sales
start
climbing
quickly.
Maturity
stage
The
stage in the product life
cycle in which sales
growth
slows
or levels off.
110
Principles
of Marketing MGT301
VU
Decline
stage
The
product life-cycle stage in
which a product's sales
decline.
Innovators
Innovators
help get the product
exposure but are not
often
perceived
by the majority of potential buyers as
typical consumers.
Early
Adopters
This
group serves as opinion
leaders to the rest of the
market.
Early
Majority
Some
34% of the market that is
the "typical consumer" but
likely to
adopt
innovations a little
sooner.
Late
Majority
This
group is skeptical and
adopts innovations only
after most of
the
market has accepted the
product.
Laggards
This
group is suspicious of change
and adopts only after
the
product
is no longer considered an
innovation.
Core
product
Is
the core, problem solving
benefits that consumers are
really
buying
when they obtain a product
or service. It answers
the
question
is what is the buyer really
buying?
Actual
product
May
have as many as five
characteristics that combine to
deliver
core
product benefits.
Augmented
product
Includes
any additional consumer services and benefits
built around
the
core and actual
products.
111