MKT 300 1nd Edition Lecture 19 Outline of Last Lecture XXXIII. Chapter 9 Terms (part 1)XXXIV. Chapter 9 Concepts to Apply (part 1)Outline of Current Lecture XXXV. Chapter 9 Terms (part 2)XXXVI. Chapter 9 Concepts to Apply (part 2)Current LectureXXV. Chapter 9 Terms (part 2)- New Product: one that is new in any way for the company concerned. FTC says a firm can call its product new for only 6 months- Federal Trade Commission (FTC): the federal government agency that polices antimonopoly laws- Consumer Product Safety Act: (1972) set up the Consumer Product Safety Commission to encourage safety in product design and better quality control.- Product Liability: the legal obligation of sellers to pay damages to individuals who are injured by defective or unsafe products- Concept Testing: getting reactions from customers about how well a new-product idea fits their needs- Product Managers: brand managers. Manage specific products - often taking over the jobs formally handled by an advertising manager- Brand Equity: the added value endowed to products and services, encompassing: brand elements (those trademarkable devices that service to identify and differential the bra name, logo or character), brand image (the perceptions and beliefs held by consumers, as reflected in the associations held in consumer memory), and brand knowledge (all of the thoughts and feelings, images experiences, believes and so on that become associated with the brand).XXXVI. Chapter 9 Concepts to Apply (part 2)6. What two things is the new product development process designed to do?These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.a. Improve your odds of successb. Get the ones that aren’t going to work out as quickly as possible so you aren’t losing money on a development that isn’t going anywhere. 7. Give three reasons why new products fail?a. Profit life cycles are getting shorterb. Early bird usually gets the profitsc. Fashion and fads8. What are critical components needed to guide new product development within the firm?a. Idea generation: ideas from customers and users, marketing research, competitors, other markets, company people, intermediaries, etc.b. Screening: strengths, and weaknesses, Fit with objectives, market trends, rough ROI estimatec. Idea Evaluation: concept testing, reactions from customers, rough estimates of costs, sales, and profitsd. Development: R&D, development model or service, test marketing mix, revise plans as needed, ROI estimatee. Commercialization: finalize product and marketing plan, start production and marketing, “roll out” in select markets, final ROI estimate. Disadvantages: competitors see what you’re doing if you just start in one location, but advantage: less expensive to just market in northeast at first.9. When deciding whether to enter a new growing product market, producers should consider whether the product is a fashion, fad, or long term trend. Explain why this matters. a. If it’s a fashion, it is going to have a short life cycle. If it is a fad, it will only be fashionable to certain groups. If it is a long term trend, it will be there for