Deck 10: New-Product Development and Product Life-Cycle Strategies

Question 1

Many marketers are now using new simulated test marketing technologies to reduce the costs of test marketing and to speed up the process.

Answer 1

True

Question 2

Malibu Beach Parties finds that the tastes and preferences of its customers change more rapidly than in the past.The manager should constantly look for external ideas from customers,suppliers,and the competition.

Answer 2

True

Question 3

Controlled test markets are still the most widely used approach for major in-market testing.

Answer 3

False

Question 4

Companies rarely solicit ideas from customers during the idea generation stage of product development.

Question 5

GreenTree Lawn and Garden Products is engaged in marketing strategy development.Management should first create a statement outlining the product's planned price,distribution,and marketing budget for the first year.

Question 6

A firm can obtain new products in two ways: acquisition or new-product development.

Question 7

A product idea is an idea for a possible product a company can offer the market,while a product concept is a detailed version of the idea stated in meaningful consumer terms.

Question 8

According to one estimate.80 percent of all new consumer products fail.

Question 9

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.

Question 10

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

Question 11

Dell's IdeaStorm website asks consumers or anyone else for insights on how to improve the company's product offering.This is an example of crowdsourcing.

Question 12

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

Question 13

JumBo Games is launching a new set of game toys in the commercialization stage.The first decision to make is introduction timing and the second is where to launch the new product.

Question 14

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.

Question 15

The first idea-reducing stage is idea screening,which helps spot good ideas and drop poor ones as soon as possible.

Question 16

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

Question 17

New product development begins with a systematic search for new product ideas through idea generation.

Question 18

More broadly,many companies are now developing crowdsourcing or open-innovation new-product idea programs.

Question 19

Blair Housewares wants to add new lines of products to its 46-store chain.Managers are correct in believing that the purpose of idea generation is to create a few ideas and that the purpose of succeeding stages is to increase that number.

Question 20

The stage at which new product and marketing programs are introduced into realistic market settings is called concept testing.

Question 21

__________ include executives,manufacturing employees,and salespeople.

Question 22

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

Question 23

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

Question 24

Which of the following is a challenge presented by the product life cycle that a firm must face?

A) Not all products eventually decline.
B) Customer tastes, technologies, and competition do not affect the marketing of the product as it passes through lifecycle stages.
C) A firm must be good at delivering its original product.
D) A firm must be good at adapting its marketing strategies.
E) It is easy to plot the stages as a product goes through them.

Question 25

Your company decides to use external sources for developing new product ideas.Which of the following would be consulted?

A) Executives and professionals
B) Suppliers
C) Intrapreneurial programs
D) Company records and data
E) Salespeople

Question 26

___________ are critical to long-term business success and this includes product improvements,product modifications,and even original products

Question 27

Companies are often looking to obtain new products.What are the two ways that are often used?

A) Line extension and brand management
B) New-product development and acquisition
C) Internal development and brand management
D) Service development and product extension
E) Market mix modification and research and development

Question 28

Sales for the time-tried household cleansers made by Brite and New Inc.have been declining for some time.If these products are typical,sales are declining because of technological advances,shifts in consumer tastes,and lack of raw materials from foreign suppliers.

Question 29

Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume and unit manufacturing costs fall.

Question 30

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.

Question 31

Each product will have a life cycle-its exact shape and length are known in advance.

Question 32

_________ is the start of new product development.

Question 33

Growth is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers.

Question 34

Companies need to pay attention to their aging products.Management should regularly review sales,market shares,costs,and profit trends,and then decide whether to maintain,harvest,or drop these declining products.

Question 35

A company's understanding of its ________ and its ability to deliver ________ to customers are critical to the creation of a successful new product.

Question 36

When a company decides to maintain a product in the decline stage,it will reduce costs and hope that sales hold up to increase the profits in the short run.

Question 37

When sales of a product falter during the PLC,a company can take several approaches.The more common ones are to modify the marketing mix,modify the product,or modify the market.

Question 38

Product classes have the longest life cycles-the sales of many product classes stay in the mature stage for a long time.

Question 39

Maturity is a period of rapid market acceptance and increasing profits.

Question 40

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

Question 41

JoAnn Fabrics has just created a new combination of colours and fabric types.The firm wants to be sure of the way consumers perceive its new product.The firm is concerned with the product ________.

Question 42

The __________ is included in the second part of the marketing strategy statement,which also outlines the product's planned price and distribution for the first year.

Question 43

A ___________ is used to develop an attractive idea.

Question 44

Which of the following is a product concept?

A) A battery-powered all-electric car
B) A pocket-size digital music player
C) An energy-efficient humidifier
D) A thin, lightweight laptop with extended battery life appealing to students and young professionals who want access to their computer anywhere, anytime
E) A high-tech, stylish running shoe with built-in sensors to record the distance the wearer has walked or run

Question 45

A simple description consisting of a word or picture might be sufficient for some ________.

Question 46

The way consumers perceive an actual or potential product is called the ______________.

Question 47

New-product ideas often come from the external source known as _________________.

Question 48

Your firm asks you to consult internal sources for new product ideas.Which of the following are common internal sources?

A) Customers
B) The firm's executives
C) Competitors
D) Trade shows and magazines
E) Suppliers

Question 49

Which of the following is the most likely reason that employees at your firm regularly attend trade shows and seminars?

A) To analyze the product life cycle
B) To test new-product concepts
C) To get new-product ideas
D) To test-market new products
E) To implement a team-based new-product development approach

Question 50

Which of the following is described in the third part of the marketing strategy statement?

A) Planned long-run sales
B) The target market
C) Planned value proposition
D) Marketing budget
E) Profit goals

Question 51

Bob's Farmworks engaged in ______________ but only after concept testing.

Question 52

Gerri's Home Innovations has just brainstormed a large number of ideas for adding new products and services.Gerri and her team will soon begin the first idea-reducing stage,called ________,to arrive at a realistic number to adopt

Question 53

The planned product positioning,goals for sales,profits,and ________are all described in the first part of the marketing strategy statement

Question 54

A ________ number of ideas are often needed in initial idea generation.From that point onward,the purpose of succeeding activities is to ________ that number

Question 55

A product concept in ________ form is presented to groups of target consumers during the concept testing stage of new-product development.

Question 56

______________ are used during concept testing for new products.

Question 57

When groups of target consumers are used to test new-product concepts it is called ____________.

Question 58

Which of the following statements best explains why idea screening may be the most important step of new product development?

A) It increases the number of ideas generated.
B) Some potentially profitable ideas may be ill perceived by the idea screeners.
C) Some ideas that will become market disasters may be originally viewed favourably by the idea screeners.
D) It gives research and development team members an opportunity to gather consumer feedback.
E) It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable.

Question 59

If terms that are meaningful to customers are used to describe a new idea it is often called a _____________.

Question 60

When an executive's writeup of a new-product idea is presented to a new-product committee,it is often called ___________________.

Question 61

Once the prototype of Wainwright Industries' new riding lawnmower,made especially for women,passes product tests,the next step is ________.

Question 62

Which of the following is necessary for successful new-product development?

A) A holistic and sequential product development approach
B) A customer-centred, team-based, systematic approach
C) A team-based, innovation-management approach
D) A market pioneer mindset and a holistic approach
E) An innovation management system and sequential product development

Question 63

Although test-marketing costs can be high,they are often small when compared with ________.

Question 64

Which of the following costs is most likely associated with the commercialization stage of new-product development?

A) Building or renting a manufacturing facility
B) Paying groups of target customers for product feedback
C) Determining the product's planned price, distribution, and marketing budget
D) Developing a prototype of the product
E) Identifying target markets

Question 65

Skippy Peanut Butter has a new peanut butter and bacon product and finds a small number of representative test cities.It plans to use the results to forecast national sales and profits.Skippy is using ________.

Question 66

A review of the sales,costs,and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

Question 67

___________ is the term used to describe when a new product is sold into the market.

Question 68

Anita's DayCare plans to offer third-shift childcare,based upon the opening of two new manufacturing plants in her area.Together the plants will hire 423 employees and run all three shifts.Initial test marketing results look promising.In considering launching this new service,Anita must first decide on ________.

Question 69

Once the product or service passes the business analysis test,it moves into what stage?

A) Concept development
B) Product development
C) Market testing
D) Strategy development
E) Product proposal

Question 70

Following the decision to "time" the introduction of the new product,a company must decide ________ to launch the new product.

Question 71

Many marketers are now using new interactive technologies,such as Frito-Lay's online virtual convenience store,to reduce the cost of ________.

Question 72

During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?

A) Concept testing
B) Marketing strategy development
C) Business analysis
D) Product development
E) Test-marketing

Question 73

Atlas Steel Corporation lacks the confidence,capital,and capacity to launch its new steel product into full national or international distribution.Even though test market results look promising,what will be management's next step?

A) Retest the product in additional markets
B) Develop a planned market rollout over time
C) Secure a loan to provide confidence, capital, and capacity
D) Seek the help of a nationally known consultant
E) Develop a prototype

Question 74

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released.Sales must be estimated before costs can be estimated.Which of the following did your text recommend for forecasting sales?

A) Conducting surveys of competitors
B) Considering the history of market opinions
C) Considering the sales history of similar products and conducting surveys of market opinions
D) Applying the PLC concept
E) Test-marketing and commercialization

Question 75

Wainwright Industries will build a new prototype riding lawnmower especially for women.In the product development stage,Joe Wainwright and his staff will incorporate the functional features and convey the ________.

Question 76

Products undergo rigorous tests in the ________ stage of new-product development.This is done to make sure that they perform safely and effectively or that consumers will find value in them.

Question 77

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

Question 78

Once managers of The Grecian Urn have decided on their product concept and marketing strategy,they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.

Question 79

The company must first decide on ________ when getting ready to launch a new product

Question 80

A decision for little or no test marketing might be wise ___________.