Mark 3000 Chapter 12-Developing New Products
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Terms in this set (43)
Innovation The process by which ideas are transformed into
new products and services that will help firms grow
Changing customer needs - Firms can create and deliver value more
effectively by satisfying the changing needs of their
current/new customers
- Keeping up with boredom
Marketing Saturation The longer a product exists in marketplace - more
likely that a market will become saturated - value
will decline if no new products
Managing risk through Diversity firms often create a broader portfolio of products -
help diversify their risk and enhance firm value
better than a single product can (eg Kleeber offers
variations of basic products - cookies)
Fashion cycles Industries rely on fashion trends and experience
short product life cycles - apparel, arts, books, and
software markets
, Improving Business Relationships New products do not always target end consumers
- they function to improved relationships with
suppliers (eg. customers search online/ask in stores
that walmart doesn't sell - they compile a list to
start selling)
Diffusion of Innovation the process by which the use of an innovation,
whether a product or a service, spreads throughout
a market group over time and over various
categories of adopters
Pioneers (Breakthroughs) New product introductions that establish a
completely new market or radically change both
the rules of competition and consumer preferences
in a market. (Apple with iPod and then an iPhone) -
are first movers
First Movers the first to create a market or product category,
making them readily recognizable to consumers
and thus establishing a commanding and early
market share lead
The diffusion of innovation curves the number of users of innovative product/service
(always bell-shaped) spreads through the population over a period of
time
Innovators Those buyers, representing approximately 2.5
percent of the population, who want to be the first
to have the new product or service.
Early adopters represent about 13.5 percent of the population.
They generally don't like to take as much risk as
innovators but instead wait and purchase the
product after careful review
Exam | Questions with 100% Correct Answers |
Verified | Latest Update 2026
Save
Terms in this set (43)
Innovation The process by which ideas are transformed into
new products and services that will help firms grow
Changing customer needs - Firms can create and deliver value more
effectively by satisfying the changing needs of their
current/new customers
- Keeping up with boredom
Marketing Saturation The longer a product exists in marketplace - more
likely that a market will become saturated - value
will decline if no new products
Managing risk through Diversity firms often create a broader portfolio of products -
help diversify their risk and enhance firm value
better than a single product can (eg Kleeber offers
variations of basic products - cookies)
Fashion cycles Industries rely on fashion trends and experience
short product life cycles - apparel, arts, books, and
software markets
, Improving Business Relationships New products do not always target end consumers
- they function to improved relationships with
suppliers (eg. customers search online/ask in stores
that walmart doesn't sell - they compile a list to
start selling)
Diffusion of Innovation the process by which the use of an innovation,
whether a product or a service, spreads throughout
a market group over time and over various
categories of adopters
Pioneers (Breakthroughs) New product introductions that establish a
completely new market or radically change both
the rules of competition and consumer preferences
in a market. (Apple with iPod and then an iPhone) -
are first movers
First Movers the first to create a market or product category,
making them readily recognizable to consumers
and thus establishing a commanding and early
market share lead
The diffusion of innovation curves the number of users of innovative product/service
(always bell-shaped) spreads through the population over a period of
time
Innovators Those buyers, representing approximately 2.5
percent of the population, who want to be the first
to have the new product or service.
Early adopters represent about 13.5 percent of the population.
They generally don't like to take as much risk as
innovators but instead wait and purchase the
product after careful review
