Question 1

Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors had offered their new MP3 players. Zune sales were very disappointing and Microsoft eventually killed the product. According to the textbook, the primary reason for the Zune's failure was due in large part to

Accepted Answer

The answer of Microsoft introduced its Zune player a few...

Question 2

One of the eight primary marketing-related reasons for new-product failure is

Accepted Answer

Incomplete market and product protocol refers to a lack of understanding of the target market, its needs, and preferences, as well as a lack of clear product positioning and differentiation. Without a clear understanding of the market, a product is more likely to fail.

Question 3

If an organization's 2015 sales for the entire United States were $50 million and its 2014 U.S. sales were $30 million, what is the annual percentage sales change?

Accepted Answer

To calculate the annual percentage sales change, we use the formula:
[(New Value - Old Value) / Old Value] x 100
Using the given values, we get:
[(50 million - 30 million) / 30 million] x 100 = 66.67 ≈ 67%
Therefore, the annual percentage sales change is 67%. The correct answer is B.

Question 4

One of the eight primary marketing-related reasons for new-product failure is

Accepted Answer

Without economical access to buyers, there will be no demand for the product, leading to failure. It is important to consider the target market and ensure that the product is accessible to them in terms of price and distribution. The other options may also contribute to the failure of a new product, but they are not the primary marketing-related reasons.

Question 5

Marketing dashboards are useful in measuring actual market performance versus the goals set in new-product planning, such as sales. Once shortfalls are identified, the first step would be to conduct market research to determine

Accepted Answer

Marketing is often about grappling with sales shortfalls.You'll need to start by trying to identify the problem.You'll want to conduct marketing research to see if the problem starts with an external factor such as changing consumer tastes or an internal factor such as a breakdown in your distribution system.

Question 6

Garlic Cake was supposed to be served as an hors d'oeuvre with sweet breads, spreads, and meats, but at its introduction the company forgot to explain this to potential consumers. This product failure demonstrates

Accepted Answer

The failure to explain how Garlic Cake should be served shows poor execution of the marketing mix, specifically poor communication of the product's intended use.

Question 7

When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was

Accepted Answer

The primary reason for the failure of Fingos was an insignificant point of difference. Consumers already had established preferences for snacking on popcorn and potato chips and were unwilling to switch to a new product with little differentiation.

Question 8

If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, which one should be used to measure sales performance?

Accepted Answer

The annual percent sales change by city is the best choice to measure sales performance as it directly reflects the growth or decline in sales for each city. Other metrics such as shelf space or production costs may indirectly impact sales but are not direct measures of sales performance. Customer psychographics may be useful for targeting specific demographics but do not provide insight into actual sales performance.

Question 9

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) __________; and (3) what the product or service will be and do to satisfy consumers.

Accepted Answer

Before developing a new product or service, it is important for a firm to have a precise protocol that includes identifying the specific needs, wants, and preferences of the target market. This ensures that the product or service will meet the needs of consumers and be successful in the market. While options A, C, D, and E are also important considerations, they do not directly address the specific needs of the target market.

Question 10

Groupthink occurs in a meeting when

Accepted Answer

Groupthink occurs when there is a strong desire for group consensus and a fear of disrupting group harmony, which leads to faulty decision-making. In scenario D, someone suspects a problem with the new product but is afraid to speak up because of the group's enthusiastic attitude, indicating that there is a fear of disrupting the group's consensus.

Question 11

One of the eight primary marketing-related reasons for new-product failure is

Accepted Answer

Poor product quality is one of the primary marketing-related reasons for new product failure. If the product does not meet consumer expectations or has defects, it can result in negative word-of-mouth and a lack of repeat purchases.

Question 12

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) __________.

Accepted Answer

The third component of the protocol should identify what the product or service will be and do to satisfy consumers.

Question 13

Most American families buy the same __________ items over and over again, making it difficult to gain buyers for new products.

Accepted Answer

The answer of Most American families buy the same __________...

Question 14

One of the two organization-related problems of inertia that can cause new-product failures is

Accepted Answer

Encountering groupthink in task force and committee meetings can lead to an organization being stuck in its ways and resistant to change, which can hinder the development and launch of new products. Groupthink can prevent new ideas and perspectives from being considered, leading to a lack of innovation and potentially unsuccessful product launches.

Question 15

Thirsty Dog! is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for your dog. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had

Accepted Answer

With thousands of new consumer packaged goods introduced each year,the cost to gain access to retailer shelf space is huge.Because shelf space is judged in terms of sales per square foot,a new product must displace an existing product on the supermarket shelves.Thirsty Dog! failed to generate enough sales to meet its sales per square foot requirements.

Question 16

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on

Accepted Answer

The passage states that American carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. This suggests that American car manufacturers did not satisfy customer needs on a critical factor, which was providing cars with the steering wheel on the right.

Question 17

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers' needs, wants, and preferences; and (3) what the product or service will be and do to satisfy consumers.

Accepted Answer

The statement is referring to a protocol that a firm should have before developing a new product or service. The protocol should include a well-defined target market, specific customers' needs, wants, and preferences, and what the product or service will be and do to satisfy consumers. Option A, B, C, and E are not the main components of this protocol.

Question 18

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

Accepted Answer

The answer of OUT! International's Hey! There's A Monster In...

Question 19

Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn't believe the claim and were frightened by the "cidal" in the brand name. The reason for this product failure was

Accepted Answer

The answer of Kimberly-Clark developed its Avert Virucidal tissues that...

Question 20

Less than __________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.

Accepted Answer

Less than 3 percent of new CPG products exceed first-year sales of $50 million, according to a study by Nielsen.

Quiz 10: Developing New Products and Services

One of the eight primary marketing-related reasons for new-product failure is

If an organization's 2015 sales for the entire United States were $50 million and its 2014 U.S. sales were $30 million, what is the annual percentage sales change?

One of the eight primary marketing-related reasons for new-product failure is

Marketing dashboards are useful in measuring actual market performance versus the goals set in new-product planning, such as sales. Once shortfalls are identified, the first step would be to conduct market research to determine

Garlic Cake was supposed to be served as an hors d'oeuvre with sweet breads, spreads, and meats, but at its introduction the company forgot to explain this to potential consumers. This product failure demonstrates

When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was

If you are using a marketing dashboard to discover which cities in Florida are not meeting their sales growth goal for your sunscreen products, which one should be used to measure sales performance?

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) __________; and (3) what the product or service will be and do to satisfy consumers.

Groupthink occurs in a meeting when

One of the eight primary marketing-related reasons for new-product failure is

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) a well-defined target market; (2) specific customers' needs, wants, and preferences; and (3) __________.

Most American families buy the same __________ items over and over again, making it difficult to gain buyers for new products.

One of the two organization-related problems of inertia that can cause new-product failures is

Until 1996, U.S. carmakers sent very few right-hand-drive cars to Japan while German carmakers exported several models with the steering wheel on the right to accommodate driving on the left-hand side of the road in Japan. American car manufacturers could blame their failure to a great degree on

Ideally, before a new product or service is developed, a firm should have a precise protocol, which is a statement that identifies: (1) __________; (2) specific customers' needs, wants, and preferences; and (3) what the product or service will be and do to satisfy consumers.

OUT! International's Hey! There's A Monster In My Room spray with a bubble-gum fragrance was designed to rid scary creatures from a kid's bedroom. Although a clever idea, it failed because it

Less than __________ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch.