Question 1

Which of the following is most closely related with the organic growth of an organization?

Accepted Answer

Organic growth refers to the growth that an organization achieves through its own resources and capabilities. Developing new products from within the organization is the most closely related activity to organic growth as it involves utilizing the existing resources and capabilities to create new products that can generate revenue and profits for the organization. Acquiring a product or service brand and entering new market places are examples of inorganic growth strategies that involve external investments, while increasing operational profitability and productivity of employees can contribute to organic growth but do not necessarily define it.

Question 2

Less than ________ of all new products are truly innovative and new to the world.

Accepted Answer

According to various studies and research, only around 10 percent of all new products can be considered truly innovative and new to the world. The rest are incremental improvements or variations of existing products.

Question 3

________ means inviting the Internet community to help create content or software, often with prize money or a moment of glory involved.

Accepted Answer

Crowdsourcing involves inviting a community of people to contribute to the creation of content or software, usually with a reward or recognition involved. This could include tasks like solving problems, generating ideas, or creating content. Companies often use crowdsourcing as a way to tap into the collective intelligence of a large group of people and to generate new and innovative ideas.

Question 4

Which of the following factors that tend to hinder new-product development is due to the fact that there may be few ways left to improve some basic products?

Accepted Answer

This factor is due to a lack of innovation and creativity in certain areas or industries, leading to a shortage of important ideas for new product development. The other factors listed, such as capital shortages, fragmented markets, and cost of development, are also common hindrances to new-product development but are not directly related to a lack of potential improvements in basic products.

Question 5

Most established companies focus on ________ when it comes to innovation.

Accepted Answer

Established companies tend to focus on incremental innovation, which involves making slight improvements to existing products or processes rather than introducing entirely new ones. This approach allows them to maintain their current market position while still adapting to changes in customer needs and preferences. Demand innovation refers to creating entirely new products or services based on customer requests, while competitive innovation involves creating new offerings in response to competitive pressures. Everyday innovation and continuous innovation are broader concepts that encompass all types of innovation, regardless of their specific focus.

Question 6

Most new-product activity is devoted to ________ existing products.

Accepted Answer

Most new-product activity is devoted to improving existing products through innovation, upgrades, or modifications to meet changing consumer needs, preferences, and desires. This is done to create a competitive advantage and maintain or increase market share. While marketing, coordinating, pricing, and distributing are all important aspects of product development, they typically come after the product has been improved or modified.

Question 7

It has been observed that most new products have shorter product life cycles. What is the reason for this?

Accepted Answer

Rivals quickly copying successful products is a major reason for shorter product life cycles. With today's technology and fast-paced business environment, it is easier and quicker for competitors to duplicate successful products and bring them to market, thereby reducing the life cycle of the original product.

Question 8

The development route for new products takes two forms. These two forms are ________ or it can ________.

Accepted Answer

The two forms of product development mentioned in the passage are developing new products in its own labs and contract with outside firms.

Question 9

A team formed at Intercom, Inc. to generate ideas for new products, conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________.

Accepted Answer

The workplaces away from the office where the team engages in activities to generate new product ideas are called "skunkworks." Skunkworks is a term that was popularly coined by Lockheed Martin in the 1940s to describe a small, autonomous team formed within a company to undertake a highly innovative and complex project. This term has now come to be synonymous with any group of coworkers who collaborate informally to work on a special project or generate new ideas.

Question 10

Newer companies create ________ that are cheaper and more likely to alter the competitive space. Established companies can be slow to react or invest in these technologies because they threaten their investment.

Accepted Answer

The term "disruptive technologies" refers to new and innovative products or services that disrupt an existing market and create a new one. They are often cheaper and more accessible than existing products, and established companies may be slow to react or invest in them because they threaten their existing investments. As a result, newer companies that are more agile and willing to take risks can gain a competitive advantage by introducing disruptive technologies.

Question 11

New-product introductions have accelerated, and in retailing, consumer goods, electronics, autos, and other industries, the time to bring a product to market has been cut by ________ percent.

Accepted Answer

According to the sentence, "the time to bring a product to market has been cut by 50 percent."

Question 12

________ are informal workplaces, sometimes garages, where intrapreneurial teams attempt to develop new products.

Accepted Answer

Skunkworks are informal and often secretive workplaces within a company where small groups of intrapreneurs are given the freedom and resources to develop new products or projects without the bureaucracy and constraints of the larger organization. They are typically located in unconventional spaces such as garages, isolated offices or even off-site locations. stage-gate systems and funnels are structured approaches to product development whereas opportunity spaces refer to areas of unmet customer needs and research centers are formalized research and development facilities within a company.

Question 13

Which of the following firms is most likely to seek radical innovation?

Accepted Answer

High-tech firms in telecommunications operate in a fast-paced industry where technological advancements are rapid and constant. To stay competitive, these firms are more likely to seek radical innovations that can significantly alter the market landscape or create new markets. Traditional publishing companies, FMCG companies, firms in the agriculture sector like those dealing with wheat, and companies selling mineral water typically focus on incremental innovations to improve their products and processes rather than seeking radical changes.

Question 14

Identify a shortcoming of giving the responsibility of new product development to the product managers of a company.

Accepted Answer

Giving the responsibility of new product development to product managers can be a shortcoming because they are often busy managing existing product lines, which could lead to neglect of their new product development duties.

Question 15

________ process recognizes the value of returning to an earlier stage to make improvements before moving forward.

Accepted Answer

Spiral development is an iterative development process that involves cycling through stages of planning, designing, prototyping, and testing. The process emphasizes a willingness to revisit earlier stages and make improvements before moving forward, making it the best choice for the given scenario. Reactive development is a process that relies on responding to changes, rather than anticipating them. Market testing and concept testing are specific methods for gathering feedback on product ideas, but they do not necessarily involve revisiting earlier stages. Proactive development is a vague term that could apply to any development process focused on planning and anticipation, but it does not necessarily imply an iterative approach.

Question 16

A company can add new products through acquisition or development. The acquisition route can take three forms. The company can buy other companies, it can acquire patents from other companies, or it can buy a ________ or ________ from another company.

Accepted Answer

The correct answer is E) license/franchise. A company can expand its product line by acquiring licenses or franchises from other companies, allowing it to use certain products, services, or brand names.

Question 17

New products continue to fail at a disturbing rate. In Canada, ________ of new consumer products fail within two years.

Accepted Answer

The answer of New products continue to fail at a...

Question 18

New-to-the-world products are

Accepted Answer

New-to-the-world products are those that create an entirely new market, meaning they introduce a product or service that has not existed before. Examples include personal computers, smartphones, and electric cars. Such products involve high risks and uncertainties but have the potential for high rewards if successful.

Question 19

Venus Embrace can best be described as ________, rather than either a repositioning or a new-to-the-world product.

Accepted Answer

Venus Embrace is described as an improvement and revision of an existing product, as it is a modified version of Gillette's existing Venus razor line.

Question 20

___________ can be a good source of input, even when they innovate products without the consent or knowledge of the companies that produce them.

Accepted Answer

Lead users are early adopters who face unique needs and problems and therefore innovate solutions themselves. These solutions can be useful for companies to develop new products or processes. Lead users innovate independently, without the knowledge or consent of the companies that produce them.

Quiz 20: Introducing New Marketing Offerings