MKTG 361 Chapter 12
Product Life Cycle
A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the __________ ___________ cycle.
Premarket test
A(n) ______________ test is when a company shows potential customers the marketing mix variables and then are surveyed if they would buy or use the product again.
idea generation; results
Although there are numerous stages in the product development process, every firm starts to develop new products through ___________ and then finishes with an evaluation of ___________.
Concept testing
Companies use different techniques to understand the wants and needs of their customers. One such technique used is _____________ testing, which is used to obtain consumers' reactions to new product ideas BEFORE a prototype is actually developed.
Correct options: Advertising Coupons
During test marketing, the potential elements of the marketing mix that may be used include which of the following?
Growth stage
During the ___________ stage of the product life cycles, firms attempt to reach new consumers by studying their preferences and producing many competing and different product variations.
Maturity stage
During the ____________ firms may pursue several strategies to increase their customer base or defend their market share. One such strategy may be to develop new features or reposition them.
First Step
Firm confirms its target market
Second Step
Firm decides how the product will be positioned
Third Step
Firm finalizes the remaining marketing mix variables for the new product.
Correct options: Negative financial impacts Product may not recover from failure Company may fail
Identify potential impacts to the company when a new product launch is a failure.
Correct options: Completely exit market Create a niche segment
Identify the steps taken by firms that have products in the decline stage of the product life cycle.
It will be extremely difficult for the firm to recover.
If a company invests all its time and effort into a new product and the product fails, ____________.
fails to meet
If a concept test __________ customers' expectations, it is doubtful it would succeed if it were to be produced and marketed.
Product launch
If a firm has a positive result from the market testing the next step is known as ___________.
Reverse Engineering
In order for a firm to successfully make a new product out of a competitor's product, that firm must engage in ____________ to figure out how to bring an improved version to the market.
Correct options: Intense competition on price Marketing costs increase
Key characteristics of the maturity stage are ____________.
Low - Introduction Rising - Growth Peak - Maturity Dropping - Decline
Match the relative level of sales (on the left) with the stage of the product life cycle (on the right) at which this level of sales is typically observed.
decline stage
Once a product stops generating sales or profits, or sales and profits are very low, the product is in the ______________ stage of the product life cycle and eventually exits the market.
timing
One of the most critical elements of success in new product launches is ___________ the introduction such as scheduling the release of a movie to match school holidays.
Correct order: Innovators Early adopters Early majority Late majority Laggards
Place each of the following categories in the order in which they adopt a product, beginning with the innovators at the top.
life cycle
The four stages -- introduction, growth, maturity, and decline --that a product passes through is called the product _____________ _________________.
diffusion of innovation
The process by which the use of an innovation, whether it be a product or service is spread throughout a market group over time and over various categories of adopters, known as _____________.
True
True or False: A company may choose to launch a new product without extensive test marketing and instead rely on instinct, since test marketing costs are high. Additionally. test markets may offer an advantage to competitors that have a similar product.
Apple iPod in 2001
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?
Test marketing
When Burger King introduced the new Whopper Bar to a limited geographical area prior to a national launch, it was engaging in ___________.
Correct options: Conducting consumer research Brainstorming within the firm Researching competitors' products and services Communicating with a firm's R&D department
Which of the following processes could be considered an acceptable method for generating ideas?
Concept testing
Through the effective use of _____________ testing, firms may be able to avoid the high costs of product development for product ideas that do not meet customers' expectations.
six stages: Idea generation Concept testing Product development Market testing Product launch Evaluation of results
When firms decide to develop new products, it is typically a long process that is broken into ____________ stages.
Timing
Which of the following factors would play an important role when launching a G-rated movie during the summer months (June, July, and August)?
Laggards
During the decline stage of the product life cycle, ___________ who have not yet tried the product or service will be entering the market for the first time.
increased sales
During the growth stage of the product life cycle, the market often becomes more segmented. Consumers' preferences can be addressed by adding variations of the product such as different colors, styles, or features, which can lead a successful firm to have __________ sales.
Idea generation
_____________ generation refers to the first stage in the process by which firms develop a new product.
Licensing
_____________ refers to a firm buying the rights to use the technology or ideas from other research-intensive firms.