Skip to main content

Key Terms

additions to existing product lines

product line extensions that involve changes to styles or flavors

business analysis

the fifth step in the new product development process, in which a potential new product is evaluated

commercialization

the eighth step in the new product development process, in which the product is launched with full-scale production, distribution, advertising, and sales promotion

communicability

the ability to communicate to the audience the benefits of using a particular product or service

concept development and testing

the third step in the new product development process, in which a product concept is developed into a detailed idea

concept testing

market research method in which customers are presented with a description of a product or service

consumer adoption process

stages consumers go through in adopting a new product

continuous innovation

category of “newness” in which the existing product undergoes only marginal changes that do not alter consumer habits

copyrights

original works of authorship that include software, songs, television shows, and motion pictures

crowdsourcing

using the input of a large group of people for market testing

diffusion of innovation

theory about how products gain momentum and spread through a population or society

discontinuous innovation

new-to-the-world products that require a significant change in consumer behavior when adopted

divisibility

the ability of a consumer to give a product a “test run” before purchasing it

dynamically continuous innovation

changes to a product or service that require little change to consumer habits

early adopters

consumers who are willing to try new products typically before others but not as early as innovators

early majority

consumers who are initially reluctant to risk trying a new product but accept innovation

evaluation of results

the ninth and final step in the new product development process, in which a company evaluates product launch performance based on predetermined metrics

external sources

in product development, sources of ideas for new products or services from those outside the organization

idea generation

the first step in the new product development process, in which many new ideas for a product are developed

idea screening and evaluation

the second step in the new product development process, in which ideas are filtered to those most likely to turn a profit

improvements and revisions to existing products

improvements to existing products that fine tune or perfect them

innovators

consumers who are the first to take a risk and buy new products as soon as they are available

intellectual property

collective term used to describe patents, copyrights, and trademarks

internal sources

in product development, sources of ideas for new products or services from those inside the organization

laggards

consumers who are skeptical of new ideas and are reluctant to try new products

late majority

consumers who are slow to catch on to the popularity of new services, products, ideas, or solutions

market attractiveness

the measure of potential value; considers factors like short- and long-term profit, market growth rate, how much competition currently exists in the market, the cost of entry into the market, and how much the product satisfies the needs of customers in the target market

market strategy development

the fourth step in the new product development process, in which a preliminary marketing strategy is developed

marketing synergy

the fit between the needs of the new product development project and the company’s marketing capabilities

new-to-the-firm products

products that are new to a company but not to the world

new-to-the-world products

new product inventions that create new markets

patents

the right to exclude others from making, using, or offering for sale an invention

personal influence

communication between individuals in which individuals can affect the purchasing decision of others because of their authority, knowledge, or position

product adoption

the fifth stage in the consumer adoption process, also known as user adoption, in which people learn about a product and start using its features

product awareness

the first stage in the consumer adoption process, in which a company creates awareness that the product is available

product concepts

perceptions of a new idea or innovation

product development

the sixth step in the new product development process, in which a potential new product undergoes development; may include the creation of a prototype

product evaluation

the third stage in the consumer adoption process, in which consumers examine, compare, and evaluate the product prior to purchase

product idea

concept of a new product that a company could potentially offer to the market

product interest

stage in the consumer adoption process in which the product has piqued the consumer’s interest

product metrics

quantifiable data that a business tracks and analyzes to determine how successful its new products are

product trial

the fourth stage in the consumer adoption process, in which the consumer tries the product out

prototype

in new product development, the creation of a physical version of the product

repositioned products

products that are retargeted for a new use

return on investment (ROI)

a metric formula used to evaluate the profitability of an investment and, in marketing, the measurement of the profitability of a new product launch

revenue streams

all the ways in which a company can generate cash flow from the sale of its products or services

technological synergy

the extent to which a new product is built on the firm’s existing technological resources

test-marketing

the seventh step in the new product development process, in which a product concept is test-marketed to determine its viability before launch to market

trademarks

words or symbols legally registered or established by use as representing a company or product

 

Citation/Attribution

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information

  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction

Citation information

© Dec 20, 2022 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

No Comments
Back to top