Initial release of a product or service to a limited audience in order to test new product/ service viability as well as to obtain feedback and response from users/ customers. Used widely by the marketers for such as websites, software products and mobile applications.
See also: Launch, Early adopters, Lean marketing
Showing posts with label new product. Show all posts
Showing posts with label new product. Show all posts
Minimum Viable Product (MVP)
A new product development technique for startups, hi-tech products, web application, and others that became popular after 2008 with the posts from Eric Ries – a famous startup entrepreneur and author of the book “The Lean Startup”.
MVP is providing an initial version or prototypes of a new product (service, experience) with a minimum set of features, aimed at a minimal target of possible customers who are known to grasp novelties even from an early prototype (early adopters) and who are meant to provide feedback for further developments. The process of prototyping continues until the new product crystallizes and fits to the market based on the findings from feedback, learning and testing of the early versions.
MVP is providing an initial version or prototypes of a new product (service, experience) with a minimum set of features, aimed at a minimal target of possible customers who are known to grasp novelties even from an early prototype (early adopters) and who are meant to provide feedback for further developments. The process of prototyping continues until the new product crystallizes and fits to the market based on the findings from feedback, learning and testing of the early versions.
Lean marketing (Startup marketing)
Agile marketing methodology promoted by Eric Ries’s “The Lean Startup” that evades the traditional waterfall processes of briefing, planning, designing, approving, testing and launching thus leading marketing steps faster ahead and starting a new product into much shorter marketing cycles than the usual ones in the traditional processing.
Early adopters (Light-house customers)
Individuals or companies that purchase and use new products and technologies before other customers do. Early adopters are usually ready to pay more for a new product and obtain certain advantages, such as improved efficiency, optimized costs, sophisticated company image, etc. On the other hand, early adopters’ feedback about the new product’s deficiencies, subsets of features and its market fit is essential for the innovation companies as well as their higher solvency with the ability to cover significant shares of the new development costs.
Modularization
Approach aiming at dividing a product into separate constituents. Modularization drives product specialists to research specific areas of their products and develop product families, based on modularity. Modularity involves: variety settings, using similarities and reducing complex features.
Time pacing
The practice of producing or introducing new products according to a given schedule. In fast-paced, hard-to-predict market industries, it would be a winning strategy in order to compete successfully with other companies. Capacities are being expanded in a way of good prediction, thus deterring competitors and gaining possible advantages. Moreover, time pacing brings strong psychological effect, motivating teams to meet set deadlines and common goals ahead.
Informative advertising
A type of advertising, which is based on objectives to be achieved. Its basic aim is to create awareness and knowledge of new products or new features of existing products.
Incremental innovation
A strategy of producing a stream of new products, each of which is an improvement on earlier models. Mostly singles.
Continuous innovation
A new product entry that is an improved or modified version of an existing product rather than a totally new product. A continuous innovation has the least disruptive influence on established consumption patterns.
Market-skimming pricing
Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
Awareness–trial-availability-repeat (A-T-A-R)
paradigm consisting of four key steps by the intended user: the steps take the person or firm from a state of ignorance about a new product to the point of product adoption.
Relative product failure
A type of new product failure in which a company earns some profits that is less than the company’s target rate of return.
Synetic
One of the techniques of creativity, which is some times used in generating new product ideas as well as in other marketing problems solution. This method uses metaphors and similes, especially those drawn from nature. There are three types of synetic problem solving: (1) personal analogy, (2) fantasy analogy, and (3) free-association word meanings.
Introductory stage of product life cycle
The first stage of the product life cycle. The new product is introduced to the market, sales are slow, promotion is usually heavy, costs are accumulated, and expectation is focused on determining when and if the product will soon enter the second (growth) stage of the cycle.
New product development
(1) The overall process of strategy, organization, concept generations, product and marketing plan creation and evaluation, and commercialization of a new product.
(2) Sometimes this term is restricted in meaning to that part of the process done by technical (R&D and manufacturing) departments.
(3) Sometimes used to denote the person or persons an organization, in contrast to the acquisition of finished new products from outside.
(4) The development of original products, product improvements, product modifications, and new brands through the firm's own R&D efforts.
Research and development
The function of working through various sciences and technologies to design new products. This usually involves some basic research for creating new technologies and some applied research for converting those basic discoveries (and others) into specific new products.
Hurdle rate
Any criterion or test figure that a new product must meet or exceed as it goes through development.
Relative advantage
In the context of diffusion of innovation this refers to one of the characteristics of new products, which are accepted by the consumers. Relative advantage refers to the degree to which potential customers perceive a new product to be superior to existing alternatives or substitutes.
Fuzzy front-end
In the context of new product development, it refers to the period preceding start of technical development. Includes strategic deliberations, concept generation, and especially, early evaluation when the concept is being evaluated before being accepted. The concept is fuzzy, not the methods.
Innovators
Firms or persons that are innovative. The term is often applied to those (1) who are the first to create a new type of product or (2) who are the first to adopt a new product introduced to the marketplace. Innovators are often thought to be opinion leaders.