Question 1

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 introduction of new products to the market, while the activity in the question refers to a review of sales, costs, and profits for already existing products, which falls under product analysis or product evaluation.

Question 2

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.

Accepted Answer

It is important for companies to regularly assess the performance of their aging products and decide whether to keep, reduce investment in or drop them based on sales, market share, costs, and profit trends.

Question 3

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

Accepted Answer

Concept testing involves evaluating a product idea before it is developed, while introducing new products into realistic market settings is known as test marketing.

Question 4

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 5

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

PLC (Product Life Cycle) is a concept that explains the stages a product goes through from its introduction to its decline. While PLC can be used to understand a product's market performance and plan marketing activities accordingly, it is important to note that marketing strategy is not solely based on the product's life cycle. Rather, it is a complex process that involves various factors such as market analysis, customer behavior, competition, and branding. Moreover, marketing strategy can also influence a product's life cycle by creating demand, introducing new features or innovations, and expanding its target market. Therefore, relying solely on PLC to develop marketing strategy can be problematic as it overlooks other important aspects of marketing.

Question 6

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.

Accepted Answer

This statement is true. When sales of a product decline during the PLC, a company can modify the marketing mix, modify the product or modify the market to improve sales.

Question 7

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.

Accepted Answer

The answer of When a company decides to maintain a...

Question 8

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

Accepted Answer

This is true. New product development typically starts with an effort to generate new product ideas through various methods such as market research, brainstorming, or customer feedback.

Question 9

Up to 80 percent of all new consumer products fail or seriously underperform.

Accepted Answer

This statistic is widely accepted in the business world and has been reported by sources such as Forbes and Entrepreneur.

Question 10

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 collect, review, evaluate, and manage new product ideas, thus improving the chances of success and avoiding a lack of ideas.

Question 11

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

Accepted Answer

A firm can obtain new products through acquiring another company or developing a new product internally.

Question 12

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...

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 serve.

Accepted Answer

The statement is reversed; it is the globalization of client companies that often drives the international growth of professional and business services to meet their global needs.

Question 14

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

Products in the maturity stage must adapt to changes in consumer needs and preferences in order to remain successful. This may involve making updates to the product itself, as well as changes to marketing strategies and distribution channels.

Question 15

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.

Accepted Answer

A product idea is a general idea of a product that a company might offer, while a product concept is a more detailed description of the product that is stated in terms that are meaningful to consumers. For example, a product idea might be "a new type of smartphone," while a product concept might be "a smartphone with a longer battery life, a larger screen, and better camera features."

Question 16

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

Accepted Answer

Launch timing is an important decision for a company when introducing a new product into the market, as it can impact the success of the product.

Question 17

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

Accepted Answer

Companies often solicit ideas from customers during the idea generation stage of product development in order to gain insights into what customers want and need. This helps them to develop products that are more likely to be successful in the market.

Question 18

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.

Accepted Answer

Management should first create a marketing strategy statement that includes the target market, planned value proposition, and sales goals before outlining the product's price, distribution, and marketing budget.

Question 19

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 20

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.

Accepted Answer

The statement correctly describes the first two decisions to make when launching a new product.

Quiz 9: Developing New Products and Managing the Product Life Cycle