Term
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Definition
| concept testing is needed to get first confirmation that assures the quality product that meets a market need |
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Term
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Definition
| concept testing is needed to get first confirmation that assures the quality product that meets a market need |
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Term
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Definition
| concept testing is needed to get first confirmation that assures the quality product that meets a market need` |
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Term
| Pre-Ideation Stage: Product Innovation Charter Before Concept Testing |
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Definition
Use product innovation charter and market analysis (opportunity identification)
PIC eliminates most new product ideas even before they are developed into concepts **
Most ideas conflict with focus, goals/objectives, guidelines, and/or backgrounds of PIC. |
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Term
| Post-Ideation Stage: Initial Reaction Before Concept Testing |
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Definition
use initial reaction and concept testing
Initial Reaction Test: Preliminary, inexpensive assessment of product concept through testing customers’ reactions to the selected product concept (still concepts, not prototype) |
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Term
| Final Pre-Development Stage |
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Definition
| Use full screen test on the product’s technical specs and marketability before product development. |
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Term
| Ideas of the following types are excluded from concept testing |
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Definition
ideas conflicting technology focus
ideas conflicting market focus (no knowledge about customers)
ideas conflicting the level of innovativeness (too much, too little)
ideas wrong on other dimensions: not low cost, too close to certain competitors |
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Term
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Definition
| what is the attractiveness of the new product to the targeted customer population |
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Term
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Definition
| what benefits and competencies do the new product bring to the firm? |
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Term
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Definition
| can the product’s advantage be maintained against competitive retaliation? |
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Term
| 3 purposes of concept testing |
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Definition
To identify the very poor concept for elimination To estimate the sales or trial rate of the product to project market share and/or revenue/ profit
a. Use buying intention test: likelihood of purchase (definitely would or wouldn’t buy)
b. Does buying intention lead to purchase behavior? To help develop the idea further
a. b/c attributes frequently conflict with each other, trade-off must be made
b. ex. Price and Quality, Speed and quality for combo printer |
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Term
| 4 steps of concept testing |
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Definition
| prepare the concept statement (format of concept), define the respondent group, select the response situation, and prepare the interviewing sequence |
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Term
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Definition
| states the difference of the product concept and how that difference benefits the customer or end-user (ex. Combo printers) |
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Term
| 2. Define respondent group |
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Definition
nd stakeholders (ex. customers, channel members, lead users) who provide info on product improvement or purchase likelihood
○ Stakeholders have a stake in the proposed product
○ ex. who are the stakeholders for HP Combo printer? |
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Term
| 3. select the response situation |
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Definition
1) How to reach respondent group for concept testing?
○ (2) Whether to contact individuals or groups? Focus group vs. interview |
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Term
| 4. prep interview sequence |
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Definition
what questions will be answered by respondent group?
○ State new product concept, ask believability, product usage, buying intentions, other info and opinions for product improvement |
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Term
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Definition
must make the new product’s difference clear, claim determinant attributes, offer familiar code, be credible and realistic
○ narrative (verbal) format ○ drawings, diagrams, and sketches (Dr. Im’s preference) ○ models or preliminary prototype: more expensive, good for complex product (vege-fruit
mobile) ○ virtual reality: 3 dimensional images of the concepts |
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Term
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Definition
The final low-risk evaluation of the product’s technical specs and marketability before product development
a. It tests product concept using various info received from PIC to concept testing
b. Look at slide: Chapter 10 : The Full Screen to see the graph |
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Term
| market and tech feasibility |
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Definition
scope: broad
b. participants: consumers and tech people |
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Term
| What are the three outcomes of full screen test? |
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Definition
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Term
| *What are the three outcomes of full screen test? |
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Definition
| recycle, proceed and rank order, and reject |
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Term
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Definition
| recycles unacceptable but potential concepts back to concept generation stage |
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Term
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Definition
| It rank-orders the good concepts to give priority for development |
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Term
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Definition
| It rejects inappropriate concepts to prevent “reinventing the wheel” problems |
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Term
| why is protocol is needed |
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Definition
It helps to answer: “what do marketing and technical departments need to work for delivering the product?”
○ It communicates essentials to all players, helps lead them into integrated actions, directs consistent outcomes with the full screen and financials, and give all players targets to shoot for.
○ Helps manage development and cycle time ○ Helps a development process to be managed and measured by providing requirements
and criteria in words. |
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Term
| quality function deployment |
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Definition
| is a system engineering project control tool for complicated projects started in the Japanese industry is the mechanism for deploying a design quality, reliability, cost and technology throughout the project which is driven by “voice of the customer” is a method for developing a design quality aimed at satisfying the consumer and then translating the consumer’s demand into the appropriate technical requirements to assure the design quality |
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Term
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Definition
| meeting market needs by using actual customer statements (referred to as the “Voice of the Customer”) its effective application of multidisciplinary teamwork the use of a comprehensive matrix (called the “House of Quality”) for documenting information, perceptions and decisions |
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Term
| 3 main benefits of using a QFD |
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Definition
reduce design time, development cycle and cost, while improving quality emphasize the cross-functional coordination, and
match customer needs with engineering characteristics. |
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Term
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Definition
it is the first part of the Quality Function Deployment and a matrix between
WHATs (benefits) and HOWs (technologies) |
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Term
|
Definition
it is the first part of the Quality Function Deployment and a matrix between
WHATs (benefits) and HOWs (technologies) |
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Term
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Definition
| Engineering Characteristics (ECs) in terms of technologies, performance, and design parameters collected by technical personnel. CAs are translated into technical specifications |
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Term
| Meaning of Square box between elements |
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Definition
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Term
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Definition
shows tradeoffs and interactions between Engineering Characteristics (basically
looks at How’s(tech) relationships) |
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Term
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Definition
Identify ECs that satisfy with CAs through coordination between marketing
and technical personnel (ex. printing speed is needed to satisfy productivity, resolution, and edge sharpness are needed for print quality) |
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Term
| 2 types of technical development |
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Definition
| Technical and marketing developments |
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Term
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Definition
| basic research for product specs, prototype development, product design and evaluation, engineering, cost forecast, pilot product and manufacturing |
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Term
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Definition
| target marketing, positioning, marketing mix design, funding, and sales forecasts and budgeting |
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Term
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Definition
| the synthesis of technology and human needs into manufacturable products it blends form and function, quality and style, as well as art and engineering |
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Term
| 5 purposes for having good design |
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Definition
| aesthetics, manufacturabilty, product use, and product disposal |
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Term
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Definition
| well designed products are more attractive |
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Term
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Definition
| well designed products are easy to use |
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Term
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Definition
| saves time and cost, and enhances quality |
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Term
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Definition
| Well designed products are easy to install, maintain, and repair |
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Term
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Definition
well designed products are easy to dissemble for recycle
In summary, a good design is aesthetically pleasing, easy to make and use, reliable, economical to operate and service, and fits recycling standards. |
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Term
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Definition
| the process by which a customer need is developed into a product design. It provides product platform where customer’s needs are transformed into several product designs (minor). Product architecture is related to establishing a product platform. |
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Term
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Definition
| can be made from the same basic platform as technology, market tastes, or manufacturing skills change (ex. taurus and sable differ in their design and product augmentation) |
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Term
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Definition
| physical trial product produced from the development process |
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Term
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Definition
A complete, fully-functioning, full-size product ready to be examined by potential customers in product use test -- helps determine how well all components fit together
■ ex, all equipped electronic bicycle to be tested in the product use test |
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Term
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Definition
A not fully functioning or developed but designed to examine a
limited number of performance attributes or features -- helps learn how the product works and how well it will satisfy customer needs
■ ex, a crude working prototype of an electric bicycle to test a few functions, features, and attributes or features |
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Term
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Definition
| firms provide end-user a product to check whether it satisfies the customer’s needs or to check likeability and purchase likelihood “under normal operating conditions” (ex. use software at home, tire installed for cars) |
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Term
| what are the different names of it? |
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Definition
| Market acceptance test field test user test |
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Term
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Definition
| in house test by the technology team inside the firm |
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Term
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Definition
| short-term use test at selected customer sites to test whether the prodcut solves the problems correctly under the normal operating conditions |
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Term
| advantages of beta testing |
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Definition
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Term
| limitations of beta testing |
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Definition
main problem: the short term use test cannot find the long term danger and risk, if it is done too late, it is hard to change design or if changes are made: launch will be delayed ■ if it is done too early, no real problems can be identified -- it eventually hurts a
firm’s reputation |
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Term
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Definition
involves thorough life-cycle use test and evaluations of the new product by the end user, the product muse solve the customer problems regardless of time spent (ex. new drug test)
○ it’s an ideal product use test, where the item is put through its paces and thoroughly evaluated by the end user |
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Term
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Definition
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Term
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Definition
|
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Term
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Definition
| monadic, paired, triangular tests (except for sequential monadic test). |
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Term
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Definition
What do mgrs want to know from the product use test? (major quality prob,
purchase likelihood, or satisfaction) |
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Term
| which user group to contact |
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Definition
| lab personnel, experts, employees, stake-holders |
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Term
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Definition
■ Mode of contact (mail vs. personal)
■ Individual vs group: Prefer individual over group.. why?
■ Location: point of use (home or office) vs central location (test center, theatre) |
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Term
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Definition
whether to disclose the brand and manufacturer
■ use blind test to avoid halo-image effects from the previous images
■ use both (a blind first followed by a branded test) to examine the change in the
perception of the branded new product |
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Term
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Definition
How much explanations and instructions to give
■ no comment, commercial (same as they will get in commercial stage) or full explanation |
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Term
| degree of control over use |
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Definition
How much supervision is needed?
■ supervised (total control) to get accurate data without dangerous misuse
■ unsupervised (more natural setting) to get natural |
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Term
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Definition
|
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Term
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Definition
the respondent tests a single product for a single period of
time: “try this and tell me how you like it”
● ex. fax, email that network externality |
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Term
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Definition
use the new product along with the existing product (market leader).: “try these two brands, then tell the difference. Which one do you prefer?”
● ex. Pepsi vs Coke |
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Term
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Definition
a new product is tested along with the other two
competitors: “Try these three brands, then tell the difference, how would you rank them based on your preference?”
● ex. Nike vs. Reebok vs. Adidas |
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Term
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Definition
| (1) Technical launch and (2) marketing launch |
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Term
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Definition
○ Build regular production capability
○ Initial runs
○ Review initial product and process
○ Production scale-up |
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Term
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Definition
○ Complete augmented product requirements
○ Finalize marketing plan
○ Create Launch plan
○ Develop and test implementation components
○ Create post launch management plan |
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Term
| what do we do in launch planning |
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Definition
It sets up-front strategic planning for product commercialization Define strategic purpose and competitive positioningOften called marketing plan or marketing program
Note that launch is the most expensive and risky part of NPD processes due to financial commitment |
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Term
| 2 levels of decisions on commercialization |
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Definition
| strategic launch decision (strategic platform decision and strategic action decision) + tactical decisions |
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Term
| strategic launch decisions |
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Definition
They are made before building the marketing plan when starting product development process. Influence tactical decisions.
○ Strategic Platform Decisions: set overall tones and direction (ex. aggressive or cautious commercialization)
○ Strategic Action Decisions: define whom we are going to sell to and how (ex. target marketing -- find market segment) |
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Term
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Definition
| marketing mix decisions that define how we implement the strategic launch decision (ex. how intensively we want to use 4P’s of marketing?) |
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Term
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Definition
| Corporate or team decisions made earlier, at PIC of product protocol specification -- Hard and expensive to change |
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Term
| type of demand sought: Primary VS Selective demand |
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Definition
Demand for product category vs. demand for brands (ex. HDTV -- Sony, Pasanoc, Samsung, Toshiba)
○ Replacement demand: existing customers are encouraged to “mitigate” to new version of product (ex. Microsoft Office 2006 from Office 2004) |
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Term
| Permanence: Permanent VS temporary introduction |
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Definition
Introduce the product for permanent or temporary changes
■ ex. New generation HDTV for permanent changes for a decade vs variation of
snack/ice cream for temporary change for a year |
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Term
| aggressiveness VS cautious entry |
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Definition
| Depends on (1) invest a lot vs. little and (2) risk taking or averse (ex. Microsoft VS. new software company) |
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Term
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Definition
Need product differentiation in terms of quality, cost and time.
○ 3 Factors of Competitive Advantage (Dr. Im’s Study): Cost efficiency, product quality,
product differentiation (speed does not matter) |
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Term
| How soon to replace without cannibalizing |
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Definition
Butt-on (replace immediately for innovators) or Roll-in and roll-out (gradual introduction for imitators) Microsoft Operating System vs. Adobe Acrobat Readers
○ The more innovative firms tend to cannibalize their own products (ex. Microsoft, Apple) |
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Term
| 3 factors to determine when to launch next generation product |
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Definition
■ Competitive environment
■ Customer Expectations
■ Profit margins (still make money? Niche marketing) |
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Term
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Definition
| Think about retaliation by major market players (ex. Microsoft vs. Linux) |
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Term
| scope and speed of market entry |
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Definition
| Rapid, fully-committed VS cautious gradual roll-out (risk involved) |
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Term
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Definition
| To what degree do we want to change the exiting image of the current products? (ex. Tobacco companies introduce anti-smoking ad and patch-Nicoderm) |
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Term
| alternate ways to segment a market |
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Definition
| end use, geographic and demographic, behavioral and psychographics, benefit segmentation |
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Term
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Definition
| How can the product be used? T-shirt used for different sports, gardening, or sleeping |
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Term
| geographic and demographic |
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Definition
| ex. Convertibles in CA or WA, high or middle class |
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Term
| behavioral and psychographics |
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Definition
| values, activities, hobbies, and lifestyle, introvert/extrovert |
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Term
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Definition
dentify different segments who seeks for different benefits from the products -- Think of Product (Joint) Space Map (or Perceptual Map)
■ Ex. new soap users for different levels of deodorant or moisture |
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Term
| 5 groups of product adopters |
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Definition
| Innovators Early Adopters Early Majority Late Majority Laggards |
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Term
| 5 innovation characteristics |
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Definition
relative advantage, compatibility, complexity,
traialability, and observability |
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Term
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Definition
| How superior is the innovation to other products? |
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Term
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Definition
| Does it fit with current product usage and end-user activity? Is the product discontinuous? |
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Term
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Definition
| Is it complex to learn how to use? |
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Term
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Definition
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Term
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Definition
| How likely is the product to appear in public place? |
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Term
|
Definition
| Degree of willingness to take the new and different opportunities |
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Term
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Definition
| Degree of frequent and extensive contact with others in social system |
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Term
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Definition
| Degree of interest above and beyond immediate local issues |
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Term
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Definition
| Degree of motivation to move upward in social status |
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Term
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Definition
| Degree of being better off financially than others in social group |
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Term
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Definition
| how consumers perceive your brand over competitors |
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Term
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Definition
| attributes and surrogates |
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Term
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Definition
| feature (ex. web phone), function (surfing web & making call) and benefit (save time, mobile) |
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Term
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Definition
■ Endorsement: Sports equipment sponsored by Tiger Wood
■ Experience: Beer since 1890 (long history)
■ Reputation: Playstation made by Sony |
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Term
| final product is composed of |
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Definition
○ Core benefits: organize schedules
○ The physical product and service sequence
○ The packaging
○ Pre- and Post-sale service
○ The intangibles: Brand, image |
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Term
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Definition
| word or symbol associated with the product -- marketing term |
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Term
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Definition
|
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Term
| advantages of generic brands |
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Definition
| Easy to remember, have high brand equity |
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Term
| disadvantages of generic branding |
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Definition
| Becomes a product category name, not a brand name |
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Term
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Definition
| A wide range of product identifier that includes packaging (Gateway), product color (Coke and Santa), decor (Starbucks interior) |
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Term
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Definition
|
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Term
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Definition
| s the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name |
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Term
| 5 ways brand equity provides value |
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Definition
| high brand loyalty, high brand awareness, high perceived quality, better brand association, other brand assets |
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Term
|
Definition
| Reduced marketing costs, increased trade leverage |
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Term
|
Definition
Easier to make brand associations, increased liking and
familiarity |
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Term
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Definition
| Supports quality positioning and higher price strategy |
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Term
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Definition
Creates positive image, helps customer process
information |
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Term
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Definition
| Patents or trademarks, strong channel relationships |
|
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Term
| how does brand equity provide value to customers |
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Definition
○ assists in customer information processing
○ increases confidence in purchase
○ increases satisfaction in product use |
|
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Term
| how does brand equity provide value to firm |
|
Definition
○ Increases effectiveness of marketing programs
○ Increases customer loyalty and trade leverage
○ Facilitates brand extensions
○ Is a source of competitive advantage |
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Term
|
Definition
|
|
Term
| why can brand extension be good |
|
Definition
■ it can provide sustainable competitive advantage
■ Can be used to sell family brands |
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Term
| why can brand extension be bad |
|
Definition
| some product categories do not work for brand extension |
|
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Term
|
Definition
Containment to transport
Protection from mishandling
Safety from causing injury: Hazardous product Inform and persuade |
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Term
| Creativity article major objectives and research questions |
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Definition
(1) whether market orientation facilitates or inhibits creativity, (2) whether creativity influences NP performance, and (3) how to define and
measure creativity in the NP development and launch contexts |
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Term
| creativity article: Major variables (dimensions) to test: what are the three dimensions of market orientation |
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Definition
| customer orientation, competitor orientation, cross-functional integration |
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Term
| creativity article: what are the 4 dimensions of NP and MP creativity |
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Definition
NP novelty, NP meaningfulness, MP novelty, and
MP meaningfulness. |
|
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Term
| creativity article: what are the 3 dimensions of new product performance? |
|
Definition
| market performance outcome, financial performance outcome, qualitative performance outcome |
|
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Term
| creativity article: (3) What do the authors try to examine through the major model (in figures)? |
|
Definition
Figure A: The relationship between NP creativity and Mp creativity and
its correlation between different variables (customer orientation, competitor orientation, cross-functional integration on the left and market performance outcome, financial performance outcome, qualitative performance outcome on the right) Figure B: the relationship between the 4 dimensions of NP and MP creativity (same variables mentioned before) |
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Term
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Definition
| discusses how our technology now looks like gadgets straight out of star trek |
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Term
|
Definition
| method to transform user demands into design quality, to deploy the functions forming quality, and to deploy methods for achieving the design quality into subsystems and component parts, and ultimately to specific elements of the manufacturing process.” |
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Term
| dirt defeats Robot Vacuum |
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Definition
● talks about how the roomba is not as popular as once hoped due to its low function and high price
● is more of a novelty device than a functional one |
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Term
|
Definition
● talks about how Wii games can be used to help rehabilitate people
● people may be more motivated to do this because it is fun and helpful |
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Term
|
Definition
● certain toys are cyclical (Trolls)
● Some are classic (crayola, Barbie)
● Some are combination of failed games (Scrabble)
● Some are huge and then fade quickly (Ferbie) |
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