chapter 8
Idea screening (Write up)
-New idea write-up reviewed by a committee -R-W-W framework—Real, win, worth doing
Major Steps in New Product Development
1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
Marketing strategy development
1.target market 2.planned price 3. Log-run sales, profit goals
simulated test markets
A procedure in which the firm builds a mock shopping experience for participants to observe their response to marketing stimuli.
Marketers must consider potential product issues related to social responsibility. Of the following, which is NOT one of the product issues associated with social responsibility? A. Patent protection B. Product differentiation and positioning C. Product safety D. Public policy issues and regulations E. Product warranties
B
___________________ are the two ways firms can obtain new products. A. New product development and existing product modification B. Mergers and acquisitions C. New product development and external research and development D. Acquisitions and external research and development E. Acquisitions and new product development
D
idea generation
Internal, external idea sources, crowdsourcing
fad
a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
controlled test market
an entire test program conducted by an outside service in a market in which it can guarantee distribution
Product Idea
an idea for a possible product that the company can see itself offering to the market
When a product is in the maturity stage of the PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as ______________________. A. market maintenance B. modifying the market C. market stimulation D. milking the market E. harvesting the market
b
Which of the following statements is true regarding standardizing products for international markets? A. Standardization helps a company develop a different image in different countries. Your answer is not correct. B. Standardization decreases product design, manufacturing, and marketing costs. C. Markets and consumers all over the world are alike, so a company should always standardize international products. D. Standardization increases product design, manufacturing, and marketing costs. E. Standardization ensures that products will succeed in foreign markets.
b
When Dr. Lawncare developed his revolutionary new solar-powered lawnmower, he expected that during the growth stage of the product life cycle ___________. A. there would be high costs per customer B. the company would see rising profits C. there would be lagging adopters D. there would few competitors E. the company could anticipate customers as innovators
b (growth stage average cost)
After market strategy is developed, the next step of the new product development process is _______________. A. concept development B. commercialization C. business analysis D. prototyping E. idea generation
c
Which of the following statements concerning new products is correct? A. Products that are merely improved in some way are not considered new. B. A modified product is not considered a new product. C. Most new products succeed within two years of their introduction. D. To be considered new, the product must be something consumers have not seen before. E. Modified and improved products are considered new.
e
Which of the following would be an appropriate strategy during the growth stage of the product life cycle? A. Modify the market, product offer, and marketing mix. Your answer is not correct. B. Shift some advertising from building product awareness to building product conviction and purchase. C. Use promotional spending to inform consumers and get them to try the product. D. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy. E. Spend a lot of money on product improvement, promotion, and distribution.
e
__________________ represent an internal source of new product ideas for a company. A. Customers B. Suppliers C. Distributors D. Competitors E. Intrapreneurial programs
e
______________________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A. Brand managers B. Attorneys C. Ombudsmen D. Product managers E. Product stewards
e
acquisition
the buying of a whole company, a patent, or a license to produce someone else's product
product image
the way consumers perceive an actual or potential product
Maturity
Modify marketing, products and marketing mix
Which of the following statements about new product development strategy is correct? A. Innovation can be very expensive and very risky. B. A new product will succeed as long as it is priced correctly. C. Good advertising creates successful new products. D. New products are usually successful because consumers like new things. E. New products are not a major source of growth for companies.
a
product concept
a detailed version of the new product idea stated in meaningful consumer terms
Product Life Cycle (PLC)
introduction, growth, maturity, decline
product stewards
job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems
Concept development
product idea, concept, image