MKT 340 Exam 3 Definitions (Iowa
State) Latest Update
• New product development - ANSWER the development of original products,
product improvements, product modifications, and new brands through the
firm's own product development efforts
• Idea generation - ANSWER the systematic search for new product ideas
• Crowdsourcing - ANSWER inviting broad communities of people-customers,
employees, independent scientists and researchers, and even the public at
large-into the new product innovation process
• Idea screening - ANSWER screening new product ideas to spot good ones and
drop poor ones as soon as possible
• Product concept - ANSWER a detailed version of the new product idea stated in
meaningful consumer terms
• Concept testing - ANSWER testing new product concepts with a group of
target consumers to find out if the concepts have strong consumer appeal
• Marketing strategy development - ANSWER designing an initial marketing
strategy for a new product based on the product concept
• Business analysis - ANSWER a review of the sales, costs, and profit projections
for a new product to find out whether these factors satisfy the company's
objectives
• Product development - ANSWER developing the product concept into a
physical product to ensure that the product idea can be turned into a workable
market offering
• Test marketing - ANSWER the stage of new product development at which the
product and its proposed marketing program are tested in realistic market
settings
• Commercialization - ANSWER introduction a new product in the market
• Customer-centered new product development - ANSWER new product that
focuses on finding new ways to solve customer problems and create more
customer satisfying experiences
, • Team-based new product development - ANSWER new product development in
which various company departments work closely together, overlapping the
steps in the product development process to save time and increase
effectiveness
• Product life cycle (PLC) - ANSWER the course of a product's sales and profits
over its lifetime ~ product development, introduction, growth, maturity and
decline
• Style - ANSWER a basic and distinctive mode of expression
• Fashion - ANSWER a currently accepted or popular style in a given field
• Fad - ANSWER a temporary period of unusually high sales driven by consumer
enthusiasm and immediate product or brand popularity
• Introduction stage - ANSWER the PLC stage in which a new product is first
distributed and made available for purchase
• Growth stage - ANSWER the PLC stage in which a product's sales start
climbing quickly
• Maturity stage - ANSWER the PLC stage in which a product's sales growth
slows or levels off
• Decline stage - ANSWER the PLC stage in which a product's sales fade away
• Price - ANSWER the amount charged for a product or service, or the sum of the
values that customers exchange for the benefits of having or using the product
or service
• Customer value-based pricing - ANSWER setting price based on buyers'
perceptions of value rather than on the seller's cost
• Good-value pricing - ANSWER offering just the right combination of quality and
good service at a fair price
• Value-added pricing - ANSWER attaching value-added features and services to
differentiate a company's offers and charging higher prices
• Cost-based pricing - ANSWER setting prices based on the costs of producing,
distributing, and selling the product plus a fair rate of return for effort and risk
• Fixed costs (overhead) - ANSWER costs that do not vary with production or
sales level
State) Latest Update
• New product development - ANSWER the development of original products,
product improvements, product modifications, and new brands through the
firm's own product development efforts
• Idea generation - ANSWER the systematic search for new product ideas
• Crowdsourcing - ANSWER inviting broad communities of people-customers,
employees, independent scientists and researchers, and even the public at
large-into the new product innovation process
• Idea screening - ANSWER screening new product ideas to spot good ones and
drop poor ones as soon as possible
• Product concept - ANSWER a detailed version of the new product idea stated in
meaningful consumer terms
• Concept testing - ANSWER testing new product concepts with a group of
target consumers to find out if the concepts have strong consumer appeal
• Marketing strategy development - ANSWER designing an initial marketing
strategy for a new product based on the product concept
• Business analysis - ANSWER a review of the sales, costs, and profit projections
for a new product to find out whether these factors satisfy the company's
objectives
• Product development - ANSWER developing the product concept into a
physical product to ensure that the product idea can be turned into a workable
market offering
• Test marketing - ANSWER the stage of new product development at which the
product and its proposed marketing program are tested in realistic market
settings
• Commercialization - ANSWER introduction a new product in the market
• Customer-centered new product development - ANSWER new product that
focuses on finding new ways to solve customer problems and create more
customer satisfying experiences
, • Team-based new product development - ANSWER new product development in
which various company departments work closely together, overlapping the
steps in the product development process to save time and increase
effectiveness
• Product life cycle (PLC) - ANSWER the course of a product's sales and profits
over its lifetime ~ product development, introduction, growth, maturity and
decline
• Style - ANSWER a basic and distinctive mode of expression
• Fashion - ANSWER a currently accepted or popular style in a given field
• Fad - ANSWER a temporary period of unusually high sales driven by consumer
enthusiasm and immediate product or brand popularity
• Introduction stage - ANSWER the PLC stage in which a new product is first
distributed and made available for purchase
• Growth stage - ANSWER the PLC stage in which a product's sales start
climbing quickly
• Maturity stage - ANSWER the PLC stage in which a product's sales growth
slows or levels off
• Decline stage - ANSWER the PLC stage in which a product's sales fade away
• Price - ANSWER the amount charged for a product or service, or the sum of the
values that customers exchange for the benefits of having or using the product
or service
• Customer value-based pricing - ANSWER setting price based on buyers'
perceptions of value rather than on the seller's cost
• Good-value pricing - ANSWER offering just the right combination of quality and
good service at a fair price
• Value-added pricing - ANSWER attaching value-added features and services to
differentiate a company's offers and charging higher prices
• Cost-based pricing - ANSWER setting prices based on the costs of producing,
distributing, and selling the product plus a fair rate of return for effort and risk
• Fixed costs (overhead) - ANSWER costs that do not vary with production or
sales level
