Question 1

Which of the following refers to developing new products and cultivating new markets?

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Diversification refers to developing new products and cultivating new markets.

Question 2

Which of the following organizational growth strategies deals with present products in present markets?

Accepted Answer

The market penetration growth strategy deals with present products in present markets. It denotes a growth direction through the increase in market share for present product markets.

Question 3

What kind of new product strategy is being used when an automobile manufacturer introduces a new car model to replace an existing one?

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development refers to creating new products to replace existing ones.

Question 4

Which of the following should be specified by the policy-making criteria on new products?

Accepted Answer

Policy-making criteria on new products should specify (1) a working definition of the profit concept acceptable to top management, (2) a minimum level or floor of profits, (3) the availability and cost of capital to develop a new product, and (4) a specified time period in which the new product must recoup its operating costs and begin contributing to profits.

Question 5

Which of the following denotes a growth direction through the increase in market share for present product markets?

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Market penetration denotes a growth direction through the increase in market share for present product markets.

Question 6

Which of the following indicates the direction in which the organization is moving with respect to its current products and markets?

Accepted Answer

Growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Developed by H. Igor Ansoff, it offers a broader approach to the new product question.

Question 7

Which of the following strategies refers to creating new products to replace existing ones?

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development refers to creating new products to replace existing ones.

Question 8

According to the growth vector matrix,which of the following products usually require the firm to make significant investments in research and development and make significant changes in its organizational structure?

Accepted Answer

New products, as defined in the growth vector matrix, usually require the firm to make significant investments in research and development and may require major changes in its organizational structure.

Question 9

On earnings associated with new products,it is critical that:

Accepted Answer

It is critical that firms not become solely preoccupied with a short-term focus on earnings associated with new products. Through a continual introduction of new products, firms will succeed in building share.

Question 10

The appearance of special guest stars on a regular television show is a strategy used to find new viewers for the existing show.It also helps in increasing the market share of the network that airs the show.Television networks encourage such guest appearances to implement which of the following growth strategies?

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Market development refers to finding new customers for existing products.

Question 11

Light Eats is a buffet-style salad bar with locations in the South,West,and Midwest United States.It serves a variety of salads and soups for the health conscious.Recently it has introduced 'Frozen Fruit' bars serving ice creams and sorbets that are made from fresh fruits and vegetables.Which of the following new product categories does the 'Frozen Fruit' bar fall into?

Accepted Answer

Authors C. Merle Crawford and Anthony DiBenedetto have developed a useful definition of new products based on different product categories. Additions to existing product lines are products that extend existing product lines to current markets.

Question 12

Pizzas n' Pies has entered into a deal with Templeton Hotels to have their brand of specialty pizzas offered on the hotel's room service menu.Which of the following growth strategies is Pizzas n' Pies using?

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Market development refers to finding new customers for existing products.

Question 13

Which of the following is an example of a product development strategy?

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development refers to creating new products to replace existing ones.

Question 14

Xapple,Inc.,a manufacturer of bottled lemonade and other soft drinks,has released a new,zero-calorie drink called Diet Lemonade.This is an example of _____.

Accepted Answer

Authors C. Merle Crawford and Anthony DiBenedetto have developed a useful definition of new products based on different product categories. Additions to existing product lines are products that extend existing product lines to current markets.

Question 15

DLW,an automobile manufacturer,has found that sales of it RockStar SUV has fallen over the last few years.It introduces a new,revamped version of the SUV with the latest GPS technology and vehicle safety features.The company stops production of the old model in order to invest all of its resources into marketing this new model.Which of the following growth strategies is DLW employing?

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development refers to creating new products to replace existing ones.

Question 16

Devon,Inc.first marketed Silky Soft as a brand of body lotion to compete with other similar body lotions.Today Devon promotes its Silky Soft lotion as an insect repellant that is also good for your skin.Which of the new product categories does Silky Soft lotion fall into?

Accepted Answer

Authors C. Merle Crawford and Anthony DiBenedetto have developed a useful definition of new products based on different product categories. Repositionings are products that are retargeted for a new use or application.

Question 17

Products that generate a maximum dollar profit with a minimum amount of risk should be:

Accepted Answer

Ideally, products that generate a maximum dollar profit with a minimum amount of risk should be developed and marketed. However, it is very difficult for planners to implement this idea because of the number and nature of the variables involved.

Question 18

Which of the following growth strategies either increase frequency of consumption or increase the number of customers using the firm's product(s)?

Accepted Answer

A goal of market penetration and market development strategies is to either increase frequency of consumption or increase the number of customers using the firm's product(s).

Question 19

Product development and diversification can be characterized as _____.

Accepted Answer

The growth vector matrix indicates the direction in which the organization is moving with respect to its current products and markets. Product development and diversification can be characterized as product mix strategies.

Question 20

Which of the following observations about new product policy is true?

Accepted Answer

Policy-making criteria on new products should specify (1) a working definition of the profit concept acceptable to top management, (2) a minimum level or floor of profits, (3) the availability and cost of capital to develop a new product, and (4) a specified time period in which the new product must recoup its operating costs and begin contributing to profits.

Quiz 7: New Product Planning and Development

Which of the following refers to developing new products and cultivating new markets?

Which of the following organizational growth strategies deals with present products in present markets?

What kind of new product strategy is being used when an automobile manufacturer introduces a new car model to replace an existing one?

Which of the following should be specified by the policy-making criteria on new products?

Which of the following denotes a growth direction through the increase in market share for present product markets?

Which of the following indicates the direction in which the organization is moving with respect to its current products and markets?

Which of the following strategies refers to creating new products to replace existing ones?

According to the growth vector matrix,which of the following products usually require the firm to make significant investments in research and development and make significant changes in its organizational structure?

On earnings associated with new products,it is critical that:

Pizzas n' Pies has entered into a deal with Templeton Hotels to have their brand of specialty pizzas offered on the hotel's room service menu.Which of the following growth strategies is Pizzas n' Pies using?

Which of the following is an example of a product development strategy?

Xapple,Inc.,a manufacturer of bottled lemonade and other soft drinks,has released a new,zero-calorie drink called Diet Lemonade.This is an example of _____.

Devon,Inc.first marketed Silky Soft as a brand of body lotion to compete with other similar body lotions.Today Devon promotes its Silky Soft lotion as an insect repellant that is also good for your skin.Which of the new product categories does Silky Soft lotion fall into?

Products that generate a maximum dollar profit with a minimum amount of risk should be:

Which of the following growth strategies either increase frequency of consumption or increase the number of customers using the firm's product(s) ?

Product development and diversification can be characterized as _____.

Which of the following observations about new product policy is true?