Chapter 10- Developing New Products and Services
Continuous innovation: low degree of learning, improved shaver or detergent
Dynamically continuous innovation: moderate degree of learning, disrupts normal routine, electric
toothbrush, CD player
Discontinuous innovation: new learning, electric car DVR
Having a distinctive point of difference is the single most important factor for a new product
New-product process: 7 stages to id a business opportunity (strategy develop, idea generate, screening,
business analysis, development, market testing, and commercialization)
New-product strategy development: defines the role for a new product in terms of firms overall
Test marketing: offering a product on a limited basis in a defined area.
Chapter 11- Managing Successful Products and Brands
Product life cycle: introduction, growth, maturity, decline
Maturity stage is characterized by a slowing of total industry sales or product class revenue. Focus on
holding market share.
Aspects of product life cycle: length, shape of sales curve, how they vary w/ different level of products,
and the rate which consumer adopt products.
Product class: entire product category or industry, such a prerecorded music.
Product form: variations in product class (prerecord music…cd, cassettes)
Market modification: strategies a company tries to find new customers, increase a products use among
existing, or create new use situations.
Trading up: adding value through features as opposed to trading down
Branding: name, phrease, or symbol to id its product
Brand name: any word, device, or combo to distinguish a product.
Brand equity: the added value a brand name gives to a product beyond the functional benefits provided.
Toro blowers, Toro mowers, Toro hoses