Chapter 10
Chapter 10
Chapter 10
Chapter 10
Chapter 10
100
What are the benefits if deep product line?
Efficient Sales Distribution Advertising economies Package Uniformity
100
Seven stages in the New Product Development Process?
New Product Strategy Development, Idea Generation, Screening and evaluation, Business Analysis, Development, Marketing Testing and Commercialization **Go over in detail**
100
What are the various steps in the Development Process?
1. Brainstorming 2. Service Encounters 3. Safety Tests
100
What does the (T) in A-T-A-R Model of Innovation Diffusion? Definition?
Trial: Usually means a purchase or consumption of the product.
100
As it relates to the Determinants of Rate of Diffusion, the more complex the product, the slower is its diffusion describes what?
Complexity
200
What is the GOAL of New Product Development?
Goal: NOT to reduce failure rates to zero 1. Minimize the dollar losses 2. Learn from the failures Limited to 6 months after it begins “regular” distribution
200
What are the various steps of the New Product Development Process?
1. Step recently added 2. SWOT Analysis Conducted 3. Protocol Defined 4. Strategic Role Identified
200
What are the various steps in the Marketing Testing Process?
1. Test Marketing 2. Simulated Test Markets (STMs)
200
What does the 2nd (A) in A-T-A-R Model of Innovation Diffusion? Definition?
Available: If the buyer wants to try the product, the effort to find it will be successful (expressed as a percentage).
200
Incompatible products like the electric car diffuse more slowly than compatible products describes what as it relates Determinants of Rate of Diffusion.
Compatibility
300
Why do New Products Fail?
#1 reason - Doesn't satisfy customers need Insignificant Points of Difference,Bad Timing,Poor Product Quality,Poor Execution of the Marketing Mix,Too Little Market Attractiveness....
300
What are the various steps of Idea Generation?
1. Open Innovation 2. Customer and supplier suggestions 3. Employee and coworker suggestions 4. Research and development laboratories 5. Competitive Products 6. Universities, Inventors, and small tech firms
300
What are the various steps in the Commercialization Process?
Regional Rollouts Time to Market (TtM) Parallel Development Fast Prototyping
300
What does the (R) in A-T-A-R Model of Innovation Diffusion? Definition?
Repeat: The product is bought at least once more, or (for durables) recommended to others.
300
What is Relative Advantage as it relates to the Determinants of Rate of Diffusion?
The degree to which a product is perceived as superior to existing substitutes
400
What percent of New Products Fail?
40%
400
What are the various steps for screening and evaluation?
1. Internal Approach - Customer Experience Management (CEM) 2. External Approach - Concept Tests Note: Cumulative Expenditures Curve
400
In reference to the A-T-A-R Model what is a Buying Unit?
Buying Unit: Purchase point (person or department/buying center)
400
What is Diffusion by definition?
The process by which the adoption of an innovation spreads throughout society
400
What is Observability as it relates to the Determinants of Rate of Diffusion?
The degree to which the benefits or other results of using the products can be observed by others and communicated to target customers.
500
What is the most important factor in New Product success?
Matching needs to the product
500
What are the various steps for business analysis?
1. Prototype 2. Business Fit 3. Capacity Management 4. Off-Peak Pricing
500
What does the (A) in A-T-A-R Model of Innovation Diffusion? Definition?
Aware: Has heard about the new product with some characteristic that differentiates it.
500
What are the 5 characteristics of Determinants Rate of Diffusion?
Complexity Compatibility Relative Advantage Observability Trialability
500
The degree to which a product can be tried on a limited basis as it relates to the Determinants of Rate of Diffusion describes what?
Trialability
M
e
n
u