Marketing Chapter 12

Identify potential impacts to the company when a new product launch is a failure

- Product may not recover from failure - Company may fail - Negative financial impacts

Without innovation, what options would be available to firms?

- Take current products to new markets - Continue to market current products to current customers

During test marketing, the potential elements of the marketing mix that may be used include:

- advertising - coupons

A postlaunch review is conducted to determine if:

- changes to the marketing mix are needed - the launch was a success or failure - additional resources are needed

Identify the steps taken by firms who have products in the decline stage of the product life cycle.

- create a niche segment - completely exit market

What are some advantages experienced by pioneer firms over later entrants?

- more readily recognizable to consumers - more likely to develop brand loyalists - establish an early market share lead

The product development process can be diagrammed as a sequential process. Place each stage in the process sin order from beginning to end.

1. Idea generation 2. Concept testing 3. Product development 4. Market testing 5. Product launch 6. Evaluation of results

Put the stages in the product life cycle in order from first to last, top to bottom.

1. Introduction 2. Growth 3. Maturity 4. Decline

Match the relative level of profitablity with the stage of the product life cycle at which that level of profitablity is typiclaly observed.

Growth - Rapidly rising Maturity - Peaking or beginning to decline Decline - Dropping Introudction - Low or negative

_________ are buyers of a product or service who are the first ones to adopt it.

Innovators

___________ defines the stages products move through as they enter, get established in, and ultimately leave the marketplace.

The product life cycle

If market testing returns with positive results, the firm is then ready to introduce the product to the entiremarket, which is called a product launch.

True

Firms need to continue to innovate because customer needs:

are constantly changing

For many Americans, the daily ritual of having a coffee is almost automatic and assumed. The same can be said for the Chinese but with tea. For a firm that is marketing a product, this examples serves as a reminder to consider the _________ of your product and its intended target market.

compatiblity

Once a product stops generating sales or profit, or sales and profits are very low, the product is in the _________ stage of the product life cycle and eventually exits the market.

decline

________ of __________ is the process by which the use of an innovation whether a product or a service, spreads throughout a market group over time and over various categories of adopters.

diffusion of innovation

After a new product is launched, what is the next step of the product development process?

evaluation of results

Apple created an entirely new brand that started with the iPod and evolved into different product cateogries (e.g., iPhone, iPad) before anyone else could catch on. Thus, Apple was the _________, which made the firm easily recognizable to consumers, helping it to gain an early market share lead.

first mover

During the _______ stage of the product life cycle, firms attemp to reach new consumers by studying their prefercnes and producing many competing and different product variations.

growth

During which stage of the product life cycle does the product gain acceptance, experience increased demand and sales, and encounter increasing competition?

growth

During the growth stage of the product life, the market becomes more segmented. Consumers' preferences can be addressed by adding variations of the product such as different colors, styles, or features. Thsi variety can lead a successful firm to have _______ sales.

increased

During the ________ stage of the product life cycle, the product category first launches and we see innovators start buying products.

introduction

The _________ stage of the product life cycle is characterized by initial losses to the firm due to its high start-up costs and low levels of sales revenue as the product begins to take off.

introduction

A(n) ___________ price promotion is a short-term price discount to encourage new product trial.

introductory

The product _______ ___________ concept is indeed a valid idea, and new analytical tools now provide "rules" for detecting key turning points in the cycle.

life cycle

Manufacturers encourage retailers to sell at a specified price known as _______________.

manufacturer's suggested retail price

During the __________ stage of the product life cycle, industry sales reach the peak, so firms try to rejuvenate their products by adding new features or repositioing them.

maturity

Not every product makes it through the life cycle to the last two stages of the PLC to reach stage three, ________ or stage four, decline

maturity

The ________ stage of the product life cycle is characterized by the adoption of the product by the late majority and good profitability.

maturity

A(n) _________ test is when a company shows potential customers the marketing mix variables and then are surveyed if they would buy/use the product again.

premarket

A(n) ___________ allowance is a payment made by a manufacturer to get new products into stores or to gain more or better shelf space in retail stores for their products.

slotting

Promotion for new products is required at each link in the _______.

supply chain

On the basis of the research gathered on consumer perceptions, the tests it has conducted, and competitive considerations, the firm confirms its ____________ market and decides how the product will be positioned.

target

When Subway introduced a new Southwestern Club sandwich in South Florida before launching it nationwide, it was engaging in:

test marketing

Which of the following factors would play an important role when launching a G-rated movie during the sumer months?

timing

During the introduction stage sales are _________ and there are __________ competitors.

very low; none or very few

True pioneer products are products that have never been seen before and literally create new markets. Which of the following products would be considered a pioneer product at the time it was introduced?

- pampers disposable diapers in the early 1960s - Amana's microwave oven in 1971

When firms measure the success of a new product, their assessment includes two interrelated factors:

- satisfaction of firm's financial requirements - satisfaction of technical requirements such as performance

Manufacturers may want to promote a new product and encourage retailers to carry the product; therefore, the manufacturer may use promotions such as:

- trade shows - short-term price reductions

Concept testing can be as simple as a brief written description of the product that might also include:

- what customer needs it would satisfy - visual images

A manufacturer must work with retailers to ensure that a new product will be delievered and availabe for sale:

- when a customer wants it - in sufficient quantities to meet demand