MGT301 - Principles of Marketing - Lecture Handout 23

User Rating:  / 0
PoorBest 

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.

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.

Related Content: MGT301 - VU Lectures, Handouts, PPT Slides, Assignments, Quizzes, Papers & Books of Principles of Marketing