Question 1

Sales of products decline because of technological advances, shifts in consumer tastes, and increased competition.

Accepted Answer

Technological advances, shifts in consumer tastes, and increased competition are all common reasons why sales of products may decline over time. As new technologies emerge and consumer preferences shift, older products may become less relevant or desirable, while increased competition can make it more difficult for a product to stand out in a crowded market. These factors can all contribute to declining sales, even for products that were popular and successful in the past.

Question 2

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.

Accepted Answer

The PLC (product life cycle) concept focuses on the different stages a product goes through from introduction to decline, and is often used to guide marketing strategies. However, marketing strategy is not always a straight cause-and-effect relationship with the product life cycle. Instead, they are often intertwined and influence each other in complex ways. This can make it challenging to develop a marketing strategy solely based on the PLC concept.

Question 3

Sequential product development has the advantage of not only being a team-oriented approach, but also of being faster in bringing products to market.

Accepted Answer

The answer of Sequential product development has the advantage of...

Question 4

JumBo Games is in the commercialization stage. The first decision that the firm should make while introducing the product in the market is introduction timing.

Accepted Answer

The statement is true. Introducing the product at the right time plays a crucial role in its success in the market.

Question 5

GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.

Accepted Answer

Business product development involves the creation and launch of new products, whereas the activity described in the statement is a review of existing products' sales, costs, and profit projections. This activity is more likely to be called product performance evaluation or product analysis.

Question 6

Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.

Accepted Answer

The purpose of idea generation is to generate as many ideas as possible, not just a few. The succeeding stages are meant to evaluate and refine the ideas to create a final product.

Question 7

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

Accepted Answer

Profits typically increase during the growth stage of the PLC, as sales volume increases and economies of scale kick in. Additionally, per customer promotion costs may actually decrease during this stage as word-of-mouth and brand recognition help to create organic growth.

Question 8

Explain the reasons for the failure of new products. What methods can a company adopt to improve its odds of new-product success?

Accepted Answer

The answer of Explain the reasons for the failure of...

Question 9

When sales of a product drop during the decline stage of the PLC, a company typically modifies the marketing mix, the product, or the market.

Accepted Answer

The answer of When sales of a product drop during...

Question 10

The business analysis stage represents the first large jump in financial investment in the new-product development process.

Accepted Answer

The answer of The business analysis stage represents the first...

Question 11

The distribution strategy during the decline stage of PLC involves building more intensive distribution networks.

Accepted Answer

During the decline stage of PLC, the focus should be on reducing costs rather than expanding distribution networks. In fact, companies may need to scale back distribution during this stage to avoid excess inventory and reduce expenses.

Question 12

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

Accepted Answer

This statement is true. Products in the maturity stage of the PLC may appear to remain unchanged, but successful ones evolve to meet changing consumer needs in order to remain competitive and maintain market share. This can involve improvements in quality, features, design, packaging, or marketing strategies.

Question 13

The international growth of many professional and business services such as accounting, consulting, and advertising led to the globalization of the client companies they served.

Accepted Answer

The answer of The international growth of many professional and...

Question 14

Marketers often involve actual customers in product testing.

Accepted Answer

Marketers often involve actual customers in product testing to gather feedback on the product and make necessary improvements before its official launch.

Question 15

GreenTree Lawn and Garden Products is engaged in marketing strategy development. The first part of the marketing strategy statement created by management should outline the product's planned price, distribution, and marketing budget for the first year.

Accepted Answer

The answer of GreenTree Lawn and Garden Products is engaged...

Question 16

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.

Accepted Answer

This statement is in line with the antitrust laws enforced by the Federal Trade Commission and the Department of Justice, which aim to promote fair competition in the market and prevent monopolies or anti-competitive behavior. If an acquisition is deemed to significantly reduce competition, the government may block or restrict the deal under the antitrust laws.

Question 17

A company launching a new product into the market must first decide where to launch the product.

Accepted Answer

The answer of A company launching a new product into...

Question 18

To avoid too few new-product ideas and the failure of many good ideas, management should install an innovation management system that collects, reviews, evaluates, and manages new-product ideas.

Accepted Answer

Installing an innovation management system can help ensure a steady flow of new-product ideas and prevent the failure of potentially good ideas.

Question 19

Harvesting the product involves reducing various costs such as maintenance, R&D, and advertising to increase sales.

Accepted Answer

Harvesting involves reducing costs to maximize profits, not increasing sales.

Question 20

Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development.

Accepted Answer

The answer of Concept testing works best with people who...

Quiz 9: New-Product Development and Product Life Cycle Strategies