primary fed agency that reviews food/package labels & makes sure claims are true Label used for: branding & promo Label includes: ingredients, where prod made, & safety requirements Chapter 12 Idea generation concept testing prod development mkt testing prod launch eval of results Innovation: process by which ideas transferred into new prods/svcs/processes/branding concepts that help firms grow The longer prod exists in market place; more likely mkt will become saturated Reasons firm innovates: changing customer needs, mkt saturation, manage risk through diversity, fashion cycles, improve bus relationships Diffusion of innovation: process by which use of innovation (prod/svc) spreads throughout mkt group over time/various categories of adopters Pioneers: breakthroughs, new prods; radically change consumer prefs & entire competitive landscape o 1 st movers: 1 st to create mkt/prod category, makes readily recognizable to customers & thus establishing commanding/early mkt share lead Innovators: buyers who want to be 1 st on block to have new prod/svc; help prod gain acceptance
Early adopters: don’t like as much risk as innovators & wait to purchase prod after careful review; opinion leaders Early majority: wait for bugs to be fixed, don’t like risk (wait to rent movie 1 st week comes out on video), few new prods/svcs can be profitable until this large group buys them; if group doesn’t become big enough it usually fails Late majority: last group of buyers to enter new prod mkt; by time they enter mkt sales level off/decline Laggards: avoid change & rely on traditional prods till no longer available Diffusion of innovation theory: relative adv (better than subs), compatibility, observability, complexity & trialability Reverse engineering: take apart competing prod, analyze, & create improved prod that doesn’t infringe on competitor’s patents Concept: brief written description of prod, tech, working principles, forms, & customer needs to satisfy Concept testing: concept statement presented to potential buyers/users to obtain their reactions; brief written description of prod & need satisfied & sometimes visual images Prod development/design: balancing various engineering, manufacturing, marketing, & economic considerations to develop prod’s form/features Prod launch: requires lots of fin resources & extensive coordination of marketing mix to roll out prod Prototype: 1 st physical form/svc description Alpha testing: determine if prod performs according to design & satisfies intended need Beta testing: potential consumers examine prototype in real use setting to determine functionality, performance, potential problems, & other issues specific to use Premarket test: before brought to mkt, determine how many customers will try & then continue to use prod Test marketing: introduce offering to limited geographical area prior to national launch Trade promo: advertising to retailers/wholesalers to get them to purchase new prods, often combine intro price promos, special events, & personal selling Intro price promo: short-term price discounts designed to encourage trial Trade show:
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- Spring '08
- Brand, prod