Business
Administration Department
BA 347 New Products Management Fall 2007
Dr. Geoff
Lantos
Key Concepts
In order to facilitate your studying
and to help you learn the language of the new products discipline, below are
key concepts and terms for each chapter you will be reading in Crawford, listed
in the order of readings on the syllabus.
These are the terms that I believe are most important. Some of them will be familiar to you from
other marketing and management courses, while other concepts will be brand new
to you.
Although most of these terms are
bold-faced in the text, not all of them are (some are italicized and a few
aren’t highlighted in special formatting at all). Several concepts that are bold-faced in the
book aren’t listed here. The definitions
can be found in the chapters, and most are also clearly defined in the glossary
(separate handout).
Many, but not all, of these terms will
be covered in class. I suggest you
correlate this list with your Lecture/Discussion Outline handout and
corresponding class notes when reviewing this material. Concepts you should be familiar with but
which you won’t be asked to define per se on Part I Concepts of an exam are italicized (there could, however, be
Part II and Part III type questions related to them).
Chapter 1
New products management (product
innovation management, product planning) (p. 6)
New products manager
The
true rate of new product failure and why does it occur? (p. 7)
Heuristics (p. 10)
Product innovation vs.
process innovation (p. 10)
Serendipity (p. 10)
Types of new products (Figure 1.4, p.
12, and surrounding discussion, pp. 11-13)
Major
reasons for new product success/failure (pp. 13-14)
Goods
vs. services vs. products (p. 14)
Business-to-business
products vs. consumer products (pp. 14-15)
Why
do people resist innovation? (Kainotophobia) (p. 16)
Conflicting
management demands (Lantos calls this the “control variables triad”):
time–cost-quality (p. 16)
Three critical new product process
tests and their purposes (p. 17)
News
products management as both art and science (p. 17)
Invention vs. innovation (p. 18)
Design
(more on this later in the course)
Functional
representative on a team (p. 19)
Project manager/team leader
Five stages of the new product
development process (p. 20)
Chapter
16 pp. 371-373
Product characteristics that speed new product adoption (p. 372)
Adopter categories (Innovators, early
adopters, etc.)
Chapter
14 pp 309-318; pp. 322-327
Collaboration (p. 310)
Buy-in/ownership (pp. 310-311; p. 318)
Empowerment (p. 311)
Who does and doesn’t belong on the
team: Integrators, Receptors, Isolates (p. 313)
Core team, ad hoc group, extended team
Product champion (P. 314)
Sponsor (p. 316)
Chapter
14, pp. 303-309; 317-322
New products organization structure
options (Figure 14.1, p. 305) and
choosing between them (pp. 304-
309)
Functional
organization (p. 304)
Projectization, and what it means to a
team manager (pp. 304, 305)
Functional matrix (p. 305)
Balanced matrix
Project matrix (p. 306)
Venture
Spinout venture
Cross-functional interface friction
and management (pp. 315-317)
Chapter 2
Crawford’s
five-phase new products process (Figure 2.1, p. 24)
Stage-gate process (p. 26)
Accelerated time to market (p. 28)
Multifunctional program (p. 28)
How
opportunities are identified and
selected (pp. 27-28)
Product innovation (and/or
acquisition) gap (p. 29)
Concept generation (pp. 29-30)
Product concepts (p. 29)
Concept/project evaluation (p. 30)
Screening/pretechnical evaluation
Product description/product
definition/protocol
Fuzzy front end
Development (p. 31)
Business/financial analysis (p. 32)
Launch/commercialization
Market test
The evolving product/concept life
cycle (p. 33)
Accelerated product development
(APD)/speed to market (p.35)
Cycle time metric/time to market
First to mindshare
Techniques
for speeding time to market (pp. 35-38)
Cross-functional team (p. 37)
Parallel processing
Market visioning (p. 43)
Voice of the customer (VOC)
Probe-and-learn/lickety-stick
(p. 44)
Chapter 3
Strategic
planning: what and why (pp. 44-45)
Product innovation charter: what, why,
sections (pp. 52-53, 60-70)
Platforms: what and types (product,
brand, category, etc.) (pp. 54-58)
Brand
equity (p. 57)
Strategic business units
Silos/chimneys
Arena and its bases (technology,
product, etc.)(p. 63)
Dual drive (pp. 63, 65)
Technology drivers (pp. 63-64)
Market drivers (p. 64)
Mass customization (p. 64)
Goals vs. objectives: what and types
(pp. 65-66)
Special
guidelines/”rules of the road” section
of the PIC (pp. 65-68)
Various degrees of innovativeness (pp.
65-66)
Timing/Precedence
options (pp. 67-68
Product
portfolio approach and its dimensions (p. 63)
Chapter 16, pp. 361-371
Strategic
givens (pp. 361-362)
Customer
migration (p. 363)
Strategic
platform decisions for launch (p. 360; pp. 363-367)
Selective
demand vs. primary demand (pp.363-364)
Micromarkets (pp. 369)
Mass
customization (p. 370)
Chapter 4
Three
types of creativity (pp. 82-83)
Identifying
creative people (pp. 82-84)
Activities
to encourage creativity (pp. 84-87)
Roadblocks
to creativity and removing them (pp. pp.87-88)
New
product concept: 3 elements and how they
relate to one another; new product concept distinguished
from product idea and completed product (pp. 88-92)
Product concept statement (pp. 92-94)
Two general approaches to concept
generation: finding ideas already created (external sources) or creating them
ourselves (internal sources) (pp. 94-98)
Sources of concepts already created
(Figure 4.6, p. 96)
Lead
users (pp. 97--98)
Chapter 5
Problem-based ideation (problem find/solve route) (p. 102) vs. the fortuitous scan and analytical attribute
approaches (pp. 125-126)
Stakeholder integration (p. 103)
Routine market contacts (p. 104)
Direct customer/stakeholder contacts
(p. 105)
Problem analysis and the steps taken (pp. 105-108)
Sources of problems/needs, especially
problem analysis, and methodologies to use (Figure 5.1 on p. 103)
Problem inventory (p.105)
Bothersomeness
index (p.107)
Focus
groups, including advantages ad limitations (pp. 109-110)
Qualitative
research (p. 110)
Observational research (p. 111)
Role playing (p. 111)
Product function analysis (p. 112)
Scenario analysis (pp. 112-116):
scenario extend (be able to extend a trend) (p. 113) and scenario leap
(unconstrained by trends) (p. 113)
Static vs. dynamic leap (p. 113)
Wild card events (pp. 113-115))
Group creativity and its various techniques (p. 117)
Brainstorming and how to make it work right (p. 117)
Bazooka
effect (p. 118)
Brainsketching
Electronic
brainstorming and how it improves on traditional brainstorming (pp. 118-119)
Group support systems (GSS) software
(p. 118)
Disciplines panel (p. 119)
Chapter 7,
pp. 151-157
Dimensional analysis (pp. 151-152)
Checklists (pp. 152-153)
Relationships analysis (pp. 153-154)
The nature of dimensions used in
relationships analysis: features, functions, and benefits (pp. 153-154)
Two-dimensional matrix (p. 154)
Morphological/multidimensional matrix
(pp. 155-157)
Analogy (p. 157)
Appendix B, pp. 501-504; 506-508
Trend: people, areas, hot products, and
newspapers (p. 502)
Technological
changeover
Technical
innovation follow-on
Phillips 66 groups (p. 503)
Brainstorming circle
Reverse brainstorming
Synectics (p. 504)
Think tanks/skunk works
Free association (p. 506)
Stereotype
activity (pp.506-507)
Cross-field compilation//fertilization
(P. 507)
Use of the ridiculous
Forced relationships (p. 508)
Creative stimuli
Big
winner (p. 509)
Chapter
6 (skip pp. 130 [“The challenge…]-135 [“Perceptual Gap Maps Based…”])
Product attributes: features,
functions, and benefits (pp. 124-126)
Analytical attribute techniques (p.
127)
Gap analysis (pp.127-128)
Gap map (p. 128)
Determinant gap map (pp. 128-129) vs.
perceptual gap map (pp. 129-130)
Determinant attributes (p. 129)
AR perceptual gap map (pp. 129-130)
OS perceptual gap maps (pp. 135-137))
AR perceptual gap map and OS perceptual gap maps compared
and contrasted (Figure 6.12, p. 138—
ignore analytical methods used)
Chapter 7, pp. 142-150 (skip pp. 145-148)
Trade-off analysis/conjoint analysis
applied to concept testing (pp. 142-143): Note the subtle
difference between the terms)
Utilities (p. 143)
Virtual prototypes (p. 150)
Information
acceleration
Chapter
9, pp. 200-206 (skip pp. 202-203)
Benefit segmentation (pp. 200-201)
Importance map (pp. 200-201)
Cluster analysis used to identify
benefit segments (pp. 200-201)
Joint space maps (p. 201)
Ideal brands (pp. 201-202)
Conjoint analysis applied to concept
testing (pp. 204-206)
Chapter 12, p.262
Product positioning (p. 262)
Chapter
16 pp. 373-377
Product positioning statement (pp. 373-374)
Positioning
alternatives (pp. 374-375), including surrogates (p. 374)
Appendix
B, pp. 504-506
Benefit/use/function analyses (pp. 504-505)
Attribute extension (p. 505)
Chapter 8
New
product evaluation system (pp.165-166)
Evaluation
as a continual process during each phase of the new product development process
(pp. 165-
168)
Cumulative expenditures curve (pp. 169-170)
Risk/payoff
matrix (pp. 170-171)
Decay/mortality curve (pp. 171-172)
Rolling evaluation (p. 173)
Potholes and how they help drive an
evaluation system (p. 174)
Concept
testing as concept development (p. 174)
The
people dimension (pp. 174-175)
Surrogates/surrogate questions (Don’t
confuse with “surrogate positioning”) (p.175)
A-T-A-R model, the meaning of its four
components, and sources for estimating
each (pp. 175-180;
Figures 8.6 and 8.7)
Chapter 9,
pp. 185-200
The
reasons for the importance of up-front evaluations: control triad and marketing
decision making
(pp. 185-186)
Relationship
between PIC and evaluation (pp. 186-187)
Market (opportunity)
analysis/preliminary market analysis (p. 187)
Initial
reaction (pp.187-188)
Heuristics
(p. 188; also p. 10)
Competitive insulation (p. 188)
Concept testing: what and how (pp. 189-192)
Prototype concept test (p. 190)
New product concept (p. 191)
Concept
testing: purposes (pp. 191-192)
Prescreening (p. 192)
Top-two boxes (p193)
Concept statement with variations
(formats [narrative, drawing/diagram, prototype, or virtual reality] ;
commercialized vs.
noncommercialized) (pp. 193-197)
Stakeholders (p. 197)
Real-time response survey (p. 198)
Chapter 10
(skip pp. 223-225)
Full screen: what and purposes (pp. 211-213)
Scoring model (pp. 211-212)
When
screening is unnecessary (p. 213)
Scoring
model: structure, and limitations (pp. 213-214)
Factors
in scoring models (don’t confuse with “factors” in factor analysis) (p. 206
Surrogate factors in scoring models
(don’t confuse with surrogate positioning or surrogate
questions) (pp. 215-216)
Culling factors (p. 219)
Sensitivity testing (p. 212)
Profile sheet (p. 220 and Figure 10.6
on p. 221)
Project
NewProd screening model (pp. 220-222))
Chapter 11
(skip pp. 234 [“Techniques for Forecasting…”]-237 [“Observations on Forecasting
Models”])
Sales forecast (what, whose
responsibility, who participates) (pp. 231-232)
Forecasting
sales using the A-T-A-R model (pp. 233-234)
Life cycle concept of financial
analysis (pp. 240-241)
Risk premium and its relationship to the required rate of return (hurdle rate)
(pp.242-243)
Chapter 12
Concurrent system vs. relay-race
system (p. 256)
Product protocol (and synonymous
terms): what (p. 257), purposes (pp. 258-260), and how to write
One/protocol contents (pp. 260-267)
Augmented product concept (pp. 258-259)
Product deliverables (p. 259)
Critical/central utility factors
(CUFs): hard and soft (p. 260)
Product positioning (p. 256)
Quality Function Deployment (QFD) (p.
267)
House of Quality: what and elements
(whats/requirements/needs/CAs, hows/ECs/design
(performance) parameters (pp.
267-270)
Chapter 13
Design (p. 281-282)
Contributions
of design to new product goals (pp. 282-288: design for speed to market
(pp. 282-283),
design for ease of manufacture (p. 283),
design for differentiation (p. 284), etc.
Universal design (p. 284)
Design for disassembly (pp. 285-286)
Product architecture (p. 287)
Components and chunks (p. 287)
Derivative products (p. 289)
Industrial designers (pp. 289, 292)
Prototype (p. 291)
Comprehensive prototype vs. focused
prototype (p. 291)
Design engineers (p. 292)
Co-location (p. 294) and digital
co-location (p. 295)
Computer-based
design technology: CAD,
Design for manufacturability (DFM) (p.
296)
Design for assembly (DFA) (pp.
296-297)
Rapid prototyping (p. 297)
Chapter
15
Product use testing (and synonymous terms) (p. 332): what (pp. 350-351), purposes (pp. 352-360),
problems (p. 352) and 13 key decisions/dimensions (pp. 360f)
Marketing ramp-up (p. 334)
Manufacturing ramp-up/manufacturing
scale-up (p. 334)
Alpha testing (p. 341), beta testing (p.
341), and gamma testing .(p.342)
Validity and reliability (p. 345)
Mode
of contact options (mail vs. personal, individual vs. group, location: point of
use vs. central
location) (p. 345)
Identity
disclosure: blind vs. branded tests (p. 345-346)
Degree
of explanation: no comment vs. commercial vs. full (p. 346)
Variations in singularity (Figure 15.6,
p.347): monadic, sequential monadic, paired comparison, triangular
(pp. 347-348)
Variations in sources of product:
batch, pilot plant, and final/full-scale production (p. 348)
Product
form: single best vs. variants (p.349)
Norms (p. 351)
Chapter 16,
pp. 377-387
Trademarks/brands (p. 377)
Service marks, trade names
Trademark
registration and protection
Trade dress (p. 378)
Secondary meaning
Criteria
for good brand names (pp 379-381)
Brand
name creation and testing process (pp. 380-381)
Brand equity and means whereby brand
equity adds value (p. 381)
Brand extensions (p. 382)
Master brands (p. 383)
Brand name dilution (pp. 383-384)
Flagship brand (p. 384)
Packaging: types (primary, secondary,
tertiary) (p. 386), roles of packaging
Family packaging (p. 387)
Chapter 18
Market testing: what, distinction from test marketing, why important, and
limitations (p. 414-419)
Marketing component tests (p. 417)
Methods of market testing: what
(Figure 18.3 on p. 420), when appropriate
to use each (pp. 419-420)
Pseudo sale methods: what and when appropriate to use each (pp. 420-425)
Speculative sale (pp. 421-422)
Simulated test market (STM) (pp.
422-425)
Sales wave (p. 423)
ASSESSOR (p. 424)
Controlled sale methods: what and when appropriate to use (pp. 425-429)
Informal selling (pp. 425-426)
Direct marketing (p. 426)
Minimarkets (pp. 426428)
Controlled distribution scanner
markets (pp. 427-428)
Scanner market testing (pp.
428-429)
BehaviorScan (p. 427)
InfoScan (p. 428)
Natural
sell-n (p. 429)
Single-source systems (p. 429)
Full sale methods: what, when appropriate to use (pp. 430- 437)
Test marketing: what, when appropriate to use, limitations of, pros and cons (pp. 430-432)
Choosing
test markets: and criteria for (pp. 432-433)
Rollout: what, forms, reasons to use,
limitations (pp. 433-437)
Part
V. Introduction pp. 357-361
Strategic givens (p. 358, p. 361)
Guideline decisions
Strategic launch decisions (pp. 360-361)
Tactical launch decisions
Chapter 17
Launch cycle: relationship to PLC, four phases and new product manager's task in each phase
(pp. 393-397)
Prelaunch (p. 393)
Preannouncements and signaling (pp. pp.
394-396)
Indirect and direct network
externalities (p. 411)
Beachhead (p. 396)
Announcement (p. 397)
Communications
mix (p. 399)
Copy strategy statement (p. 399)
Strategic alliances (p. 401)
A-T-A-R requirements in marketing
planning (pp. 401-408)
Awareness: what, how to get more, and
how to measure (pp. 401-402)
Getting availability/reseller stocking
(pp. 402-403)
Slotting allowance (p. 404)
Trial: what, types (personal,
vicarious, virtual), barriers to,
overcoming barriers (pp. 404-08)
Repeat
purchase (p. 408)
Chapter 19
Postlaunch
management/control: what and how (pp. 443-446: identifying the potential problems
that require control (pp. 445-449),
identifying variables to measure
potential existence of each
of those problems
(pp. 449-450), and preparing standby
contingency plans that can be put into