Question 1

Studies of the new-product development process over the last 30 years have concluded that companies that are likely to succeed in developing and introducing new products exhibit certain characteristics.List three of the characteristics that improve the likelihood of successful product introduction.

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Question 2

Draw the sales line and the profit line of the product life cycle in the following diagram,and label each line.Then indicate the names of the four stages of the product life cycle in the blanks provided.

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Question 3

Profits typically reach their peak during the growth stage of the product life cycle.

Accepted Answer

During the growth stage, sales volume increases, resulting in higher revenues and often lower costs per unit produced. This leads to higher profits. However, during the maturity and decline stages, profits tend to decline as competition increases and sales volume decreases.

Question 4

The product life cycle concept encourages marketing managers to act reactively.

Accepted Answer

The product life cycle concept encourages marketing managers to plan proactively for changes in the market and adjust their marketing strategies accordingly, rather than reacting to changes as they occur.

Question 5

What three ways can test marketing cause problems for a company? What are two alternatives that can be used instead of traditional test marketing?

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Question 6

Many products may experience short-term fluctuations in sales,but a long-term drop in sales probably signifies that a product is in the decline stage of the product life cycle.

Accepted Answer

Long-term drop in sales is a characteristic of the decline stage of the product life cycle, indicating that the product has reached its saturation point and is gradually losing its appeal to the customers. Short-term fluctuations in sales are normal and can occur due to various reasons such as seasonal changes or market trends.

Question 7

Describe how a multinational corporation can most efficiently and effectively meet the needs of the global market.

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Question 8

After successful business analysis of a new product,the development stage begins.Describe the development process.Be sure to explain the difference between laboratory testing and use testing.

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Question 9

Describe the screening stage of the new-product development process.Describe a common test used during the screening stage.

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Question 10

What is the final stage in the new-product development process? What tasks are set in motion during this stage?

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Question 11

There are five categories of adopters that participate in the diffusion process.Name and briefly describe each of these five categories in the correct order from earliest adopter to last adopter.

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Question 12

List the four stages of the product life cycle.List four typical characteristics for each stage.

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Question 13

After products and marketing programs have been developed for new products,they are usually tested in the marketplace.What is test marketing? How might a company benefit from the use of test marketing? How can test marketing cause problems for a company?

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Question 14

Name and describe four categories of new products.

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Question 15

There are five product characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product.Name and briefly describe four of these characteristics.

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Question 16

When choosing a test market,managers need to consider many criteria for a good test market city.List six criteria.

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Question 17

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device.A clean,flat surface is required for the virtual keyboard.Five product characteristics can be used to predict and explain the rate of acceptance and diffusion of a new product.Use these characteristics to predict the rate of acceptance and diffusion of the Canesta virtual keyboard.

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Question 18

Steve Legado designs software for the medical profession.He thinks that the market for his product is reaching saturation.This would imply that Legado's product is in the growth stage of its product life cycle.

Accepted Answer

A saturated market would suggest that the product has reached maturity or even decline stage, not growth stage.

Question 19

What is the most important factor in a successful new-product introduction? What are three reasons that products fail? Identify five characteristics of firms that typically experience success in new-product introductions.

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Question 20

As the marketing vice president for Vizard Garden Accessories,you must come up with new product ideas for the manufacturer of garden gazebos,trellises,benches,and tables.What are five important sources of new product ideas? What are some techniques you could use to stimulate creative thinking for new product ideas?

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Quiz 9: Developing and Managing Products