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42 Cards in this Set
- Front
- Back
buying of a whole company, a patent, or a license to produce someone else's product
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aquisition
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development of original products, product improvements, product modifications, and new brands developed from the firm's own research and development
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new product development
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8 steps to the new product development process IICMBPTC
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idea generation, idea screening, concept development, marketing strategy, business analysis, product development, test marketing, commercialization
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2 sources for new product ideas in product generation
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internal- r&d, intrapreneurial, External- customer, competitors, distributors, suppliers
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during the idea screening, what are the 3 questions to be answered?
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RRW screening framework, is it real, can we win, is it worth doing
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3 pieces to concept development
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product idea, product concept, and concept testing
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idea for a possible product
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product idea,
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detailed version of the idea stated in meaningful consumer terms
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product concept
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testing new product concepts with groups of target consumers
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concept testing
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in the marketing strategy development section, what is developed? 3 pieces
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marketing strategy statement- description of the target market and value proposition, price distribution and budget, and long run sales and profit goals
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during the business analysis, what is decided?
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to go or no
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the creation and testing of one or more physical versions by the R&D or engineering departments
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product developments
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During the test marketing stage you will test the _______ and the _______ ______ ______ before full introduction
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product, entire marketing program
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3 types of test markets
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standard test markets, controlled test markets, and simulated test markets
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a full marketing campaign in a small representative market
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standard test markets
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panels of stores agree to carry new products for a fee; less expensive and faster than standard markets
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controlled test markets
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firm creates a shooping environment that includes the new product and competing products
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simulated test markets
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3 advantages and 1 disadvantage to a simulated test market
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less expensive, faster, restrict competitors access. and its fake
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What test market do you use for a new product with large investment, and uncertainty about the product?
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standard test market
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what test market do you use for a simple line extension, copy of a competitors product, or low cost of introduction
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controlled test markets
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3 things to consider when in the commercialization process
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when to launch, where to launch, rollout plan
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3 requirements for successful new-product development
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customer centered, team based, and systematic
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Whats the old school approach to managing new product development? benefits?
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squential new product development- departments work individually to complete each stage of the process. increased control but slow
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Newer approach to managing product development?
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team-based new-product development- company departments work closely together in cross functional teams, overlapping in the product development process
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New product development should be 2 things?
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holistic and systematic
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describe the product lifestyle 5 stages, PIGMD
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product development- zero sales, introduction- slow sales growth, growth- rapid acceptance, maturity-slower growth, and decline- sales fall
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3 special product styles
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style- M shaped, Fashion- One hump, Fad- temporary periods of unusually high sales
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3 things that happen in the growth stage
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new competitors enter the market, prices stay constant, and cost of promotion decrease
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3 things that happen in maturity stage
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slowdown in sales, prices fall, weak competitors leave
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what happens in the decline stage
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technology changes, increased competition, and changing consumer taste
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the amount of money charged for a product or service
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price
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understand how much value consumers place on the benefits they receive from the product and set a price that captures that value
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basic idea
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setting price based on buyers' preceptions of value rather than on the seller's cost
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Value- based pricing
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setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk
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cost based pricing
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costs that do not vary with production or sales level
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fixed costs
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the sum of the fixed and variable costs for any given level of production
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total costs
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costs that vary directly with the level of production
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variable costs
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setting price to break even on the costs of making and marketing a product, or setting price to make a target profit
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break even pricing
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the drop in the average per-unit production cost that comes with accumulated production experience
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experience curve
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a measure of the sensitivity of demand to changes in price
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price elasticity
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a curve that shows the number of units the market will buy in a given time period, at different prices that might be charged
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demand curve
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pricing that starts with a ideal selling price, then targets costs that will ensure that the price is met
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target costing
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