Marketing Chapter 12

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PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink?

Tourism is a major industry in the area.

Breakeven analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.

business analysis

One disadvantage of test marketing a new product is that

competitors may copy the product

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during

product development

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is

quality

Functional modifications usually require that the product be

redesigned

Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) ____ at their company.

venture team

Which of the following is the best example of a functional modification?

A smoke alarm is modified to be more sensitive to smoke at farther distances

Which of the following is the best definition of product features?

Specific design characteristics that allow a product to perform certain tasks

What is the primary distinction between a line extension and a product modification?

With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification.

aesthetic

Sony's design of its new large-screen television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ____ modification; changes to make the TV's remote easier to use would be classified as a(an) ___.

aesthetic; functional modification

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications.

asthetic

Clive is an engineer involved in the product development of a new plastic laminate that would be sold to manufacturers of kitchen counter tops. Currently, Clive and his colleagues are considering the potential for profitability of the new product. They are likely in the ____ phase of the new product development process.

business analysis

Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process.

commercialization

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called

concept testing

Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea?

concept testing

The ability of a product to provide the same level of quality over time is called

consistency

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

design, styling, and features

The members of a venture team come from

different functional areas of an organization.

____ and ____ are important characteristics of quality for consumer markets, and ____ and ____ are important characteristics of quality for business markets.

ease of maintenance/company repudiation; durability/technical suitability

All of the following are major steps in developing new products except

evaluation of competitors' efforts

a runout policy of product deletion

exploits any strengths left in the product

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

functional

Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the ____ phase of new-product development.

idea generation

A genuinely new product¾like the iPhone once was¾offers

innovative benefits to consumers

The test-marketing stage

is a sample launching of the entire marketing mix

Which of the following is a disadvantage of gradually introducing a product to market?

it allows competitors to monitor the result of the new product

If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ____ to reduce the validity of the other firm's results.

jamming

If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

line extension

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of

line extensions

Dropping an unprofitable product immediately is the best strategy when

losses are too great to prolong the product's life

Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Josh's job is that of a(n)

market manager

Product deletion

may be opposed by management

Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a group to determine the feasibility of a new brand of hot breakfast cereal. After the product is launched, Luis will return to the accounting department. His present position can be described as a

member of a venture team

In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and

modification should make the product more consistent with customers' desires.

Rick is a new product manager for a large bio-chemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well.

not introducing new products

A brand manager in a multiproduct firm would be responsible for

performance of a specific brand

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

phase out

If Splenda decides its "Splenda with Vitamins" is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) ____ deletion strategy.

phase-out

Ideally, test marketing should follow which stage in the new-product development process?

product development

A ____ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.

product manager

When Jeep Wrangler produces the new year's model vehicle, they discontinue production of last year's. However, when Apple brings out a new iPhone, they continue to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a(an) _____ while Apple's is an example of a(an)______.

product modification; line extension

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)

quality modification

Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ____, whereas Katie apparently based her decision on ____.

real product differences; perceived product image

A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a ____ for its new variety of Doritos.

roll-out approach

A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?

screening

Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ____ phase.

screening

A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)

systematic review

Why are line extensions more common than new products?

they are less expensive and lower-risk

T/F Test marketing is a limited introduction of the product in areas chosen to represent the intended market.

true

The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the ____ approach.

venture team

Early in the commercialization phase, marketers must make decisions about

warranties, repairs, and replacement parts


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