10-18-07 - 5) Product Development-not full scale products...

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Chapter 12 Exam 3 Managing Existing Products -Line extension-the development of a product that is closely related to one or more products in  an existing product line(Gatorade-powder liquid differnent flavors) -Product modification-changing one or more characteristics of an existing product and removing  the original product from production(cars-old mustang to new mustang) -Quality modifications -Functional modifications-changes the way the product is used -Aesthetic modification-changes the way a product looks(body style of a car)(most  difficult of the 3 for business to change) New Product Development Process 1) Idea generation-this step must be proactive(incentive programs, brainstorming sessions) 2) Screening-filtering process 3) Concept Testing-present new ideas to potential or current customers 4) Business analysis-can this idea make a profit
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Unformatted text preview: 5) Product Development-not full scale products just a base model or base version of the new product. 6) Test Marketing-a sample launching of the entire marketing mix 7) Commercialization-full scale production of product and made available everywhere Adoption Process -Product Adopter categories-2.5% Innovators-individuals who are the first to adopt new products, and actively seek new products, age early 30s-early 40s, high education, high income, males-13.5% Early adopters-not as odd as innovators, have a need for the new products whereas the innovators do not-34% Early Majority-general adoption of the product, mid to high income-34% Late Majority-adopting behind the general population, low income levels-16% Laggards-will adopt a new product when they have to, elderly consumers...
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