NEW PRODUCT DEVELOPMENT AND PRODUCT LIFE CYCLE STRATEGIES 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 IDEA- is an idea for possible product that the company can see itself offering to the market.
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.
MARKETING STRATEGY DEVELOPMENT- designing an initial marketing strategy for a new product based on the product concept.
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 -developing the product concept into a physical product in order to assure that the product idea can be turned into a workable product.
TEST MARKETING -the stage of new-product development in which the product and marketing program are tested in more realistic market setting. (*standard test markets* controlled test markets * simulated test markets *)
COMMERCIALIZATION- introducing a new product into the market. SPEEDING UP NEW- PRODUCT DEVELOPMENT SEQUENTIAL PRODUCT DEVELOPMENT – a new product development approach in which one company department works to complete its stage of the process before passing the next department and stage.
SIMULTANEOUS (or teambased) PRODUCT DEVELOPMENT- an approach to developing new products in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness.
PRODUCT LIFE -CYCLE STRATEGIES PRODUCT LIFE CYCLE (PLC)-the course of a product sales and profits over its lifetime.It involves five distinct stages: product development, introduction, growth, maturity, and decline.
STYLE- a basic and distinctive mode of expression.FASHION- a currently accepted or popular style in a given field.FADS- fashion that enter quickly, are adopted with great zeal, peak early, and decline very fast.
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.
DECLINED STAGE- the product life cycle stage in which a product’s sales decline.