- additions to existing product lines
- product line extensions that involve changes to styles or flavors
- business analysis
- the fifth step in the new product development process, in which a potential new product is evaluated
- commercialization
- the eighth step in the new product development process, in which the product is launched with full-scale production, distribution, advertising, and sales promotion
- communicability
- the ability to communicate to the audience the benefits of using a particular product or service
- concept development and testing
- the third step in the new product development process, in which a product concept is developed into a detailed idea
- concept testing
- market research method in which customers are presented with a description of a product or service
- consumer adoption process
- stages consumers go through in adopting a new product
- continuous innovation
- category of “newness” in which the existing product undergoes only marginal changes that do not alter consumer habits
- copyrights
- original works of authorship that include software, songs, television shows, and motion pictures
- crowdsourcing
- using the input of a large group of people for market testing
- diffusion of innovation
- theory about how products gain momentum and spread through a population or society
- discontinuous innovation
- new-to-the-world products that require a significant change in consumer behavior when adopted
- divisibility
- the ability of a consumer to give a product a “test run” before purchasing it
- dynamically continuous innovation
- changes to a product or service that require little change to consumer habits
- early adopters
- consumers who are willing to try new products typically before others but not as early as innovators
- early majority
- consumers who are initially reluctant to risk trying a new product but accept innovation
- evaluation of results
- the ninth and final step in the new product development process, in which a company evaluates product launch performance based on predetermined metrics
- external sources
- in product development, sources of ideas for new products or services from those outside the organization
- idea generation
- the first step in the new product development process, in which many new ideas for a product are developed
- idea screening and evaluation
- the second step in the new product development process, in which ideas are filtered to those most likely to turn a profit
- improvements and revisions to existing products
- improvements to existing products that fine tune or perfect them
- innovators
- consumers who are the first to take a risk and buy new products as soon as they are available
- intellectual property
- collective term used to describe patents, copyrights, and trademarks
- internal sources
- in product development, sources of ideas for new products or services from those inside the organization
- laggards
- consumers who are skeptical of new ideas and are reluctant to try new products
- late majority
- consumers who are slow to catch on to the popularity of new services, products, ideas, or solutions
- market attractiveness
- the measure of potential value; considers factors like short- and long-term profit, market growth rate, how much competition currently exists in the market, the cost of entry into the market, and how much the product satisfies the needs of customers in the target market
- market strategy development
- the fourth step in the new product development process, in which a preliminary marketing strategy is developed
- marketing synergy
- the fit between the needs of the new product development project and the company’s marketing capabilities
- new-to-the-firm products
- products that are new to a company but not to the world
- new-to-the-world products
- new product inventions that create new markets
- patents
- the right to exclude others from making, using, or offering for sale an invention
- personal influence
- communication between individuals in which individuals can affect the purchasing decision of others because of their authority, knowledge, or position
- product adoption
- the fifth stage in the consumer adoption process, also known as user adoption, in which people learn about a product and start using its features
- product awareness
- the first stage in the consumer adoption process, in which a company creates awareness that the product is available
- product concepts
- perceptions of a new idea or innovation
- product development
- the sixth step in the new product development process, in which a potential new product undergoes development; may include the creation of a prototype
- product evaluation
- the third stage in the consumer adoption process, in which consumers examine, compare, and evaluate the product prior to purchase
- product idea
- concept of a new product that a company could potentially offer to the market
- product interest
- stage in the consumer adoption process in which the product has piqued the consumer’s interest
- product metrics
- quantifiable data that a business tracks and analyzes to determine how successful its new products are
- product trial
- the fourth stage in the consumer adoption process, in which the consumer tries the product out
- prototype
- in new product development, the creation of a physical version of the product
- repositioned products
- products that are retargeted for a new use
- return on investment (ROI)
- a metric formula used to evaluate the profitability of an investment and, in marketing, the measurement of the profitability of a new product launch
- revenue streams
- all the ways in which a company can generate cash flow from the sale of its products or services
- technological synergy
- the extent to which a new product is built on the firm’s existing technological resources
- test-marketing
- the seventh step in the new product development process, in which a product concept is test-marketed to determine its viability before launch to market
- trademarks
- words or symbols legally registered or established by use as representing a company or product