topic 3

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    Created by
    Balatar, Lorejane L.

    Cards (63)

    • can be defined as a business strategy where the firm plans to expand its established product brand name with the new range of items in the product category
      product line extension
    • this is an important product strategy which refers to the value adding modifications to already existing products

      product modification
    • the accurate moment to make modifications in already existing product is in the stage called "_"
      maturity
    • 3 key marketing information
      preferences, buying habits, lifestyle habits
    • 2 types of modifications
      retention type, conquesting type
    • this is focused on the firm's loyal customers and its goal is to increase the product's attractiveness for them
      retention type
    • this is focused on the competitor's loyal customers and it allows to increase the product's attractiveness for them
      conquesting type
    • who is responsible for changes in the existing products?
      product manager
    • 3 main characteristics of a product which may be changed
      quality modification, functional modification, style modification
    • this refers mostly to the change in product's durability.
      quality modification
    • two quality modifications
      reducing quality of a product to decrease price & increase quality to compete with other
    • this focuses more on the product's versatility, effectiveness, and safety, and convenience
      functional modification
    • this is combined with the aesthetic of a product and is connected more to the visual side
      style modification
    • these are essentially the new products that didn't exist in the world before
      new-to-the-world products or really-new products
    • these are new products that didn't exist in the firm's portfolio before.
      new-to-the-firm products or new product line
    • these products are supplements to the company's established product lines.
      additions to existing product lines
    • these are the upgrades that replace current products.
      improvements and revisions of existing products
    • this is changing the existing image of the product in front of the existing target market and relaunching or taking it to a new market.
      repositionings
    • these are new products that provide performance similar to the existing products but at a lower cost to the company
      cost reductions
    • it is the broader term that incorporates the complete process of idealing, designing, developing, etc.
      product development
    • introducing a unique and out-of-the-box idea and launching it in the market
      new product development
    • companies use a range of internal and external sources to identify new product ideas.
      idea generation
    • a _ might expose a hole in the company's product portfolio
      competitive analysis
    • they use the products
      employees
    • uses the firm's products or services
      customers
    • brokers, manufacturers, distributors, etc
      resellers
    • manufacturers and producers
      suppliers/vendors
    • opposite of the firm
      competitor
    • includes venture capital firms, inventor's schools, attorneys, trademarks, etc
      invention industry
    • such as consultants, advertising agencies, marketing research firms, etc
      miscellaneous
    • the first stage of PD process

      idea generation
    • the second stage of PD
      screening
    • at this early stage, much is not known about the product and its market opportunity
      screening
    • at this early stage, product ideas may simply be screened through some of internal rating process
      screening
    • this is a synthesis or a description of a product idea that reflects the core element of the proposed product
      product concept
    • third PD process
      concept testing
    • concept testing is a _ procedure that allows a company to determine customers' initial reactions
      low-cost
    • the purpose of concept testing is to _ the very poor concept so it can be eliminated, _ the sales or trial rate, help _ the idea, not just test it
      identify, eliminate, develop
    • during this stage, the product is evaluated to determine its potential contribution to the firms' sales
      business analysis
    • 5th stage. a product that has passed the business analysis stage is ready for _
      technical and marketing development
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