Ch 8 Marketing
what happens during product development?
Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering.
is the step of the new product development process during which a physical product is first developed. A. Concept development and testing B. Product development C. Idea generation D. Marketing strategy development E. Test marketing
b
Crowdsourcing is used in the _______________________ step of the new product development process. A. idea generation B. idea screening C. marketing strategy development D. commercialization E. product development
a
Which stage of the product life cycle normally lasts longer than the others and poses great challenges to marketing management? A. Maturity B. Introduction C. Product development D. Growth E. Decline
a
A company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product through _______________________. A. product enhancements B. acquisition C. new product brands D. new product development E. product improvements
b
New product commercialization takes much thought and planning. The first critical step in the commercialization process is ____________________. A. revenue goals B. introduction timing C. the target market D. market share goals E. the value proposition
b
Which of the following is NOT a product life cycle (PLC) stage? A. Decline B. Commercialization C. Growth D. Maturity E. Introduction
b
Which of the following statements concerning new products is correct? A. Most new products succeed within two years of their introduction. B. Modified and improved products are considered new. C. To be considered new, the product must be something consumers have not seen before. D. Products that are merely improved in some way are not considered new. E. A modified product is not considered a new product.
b
Which of the following statements is true regarding standardizing products for international markets? A. Markets and consumers all over the world are alike, so a company should always standardize international products. B. Standardization ensures that products will succeed in foreign markets. C. Standardization decreases product design, manufacturing, and marketing costs. D. Standardization increases product design, manufacturing, and marketing costs. E. Standardization helps a company develop a different image in different countries.
c
Which stage of the PLC is characterized by peak sales, low costs per customer, high profits, mainstream adopters, and a stable number of competitors that are beginning to decline? A. Introduction B. Decline C. Maturity D. Product development E. Growth
c
protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A. Brand managers B. Product managers C. Product stewards D. Ombudsmen E. Attorneys
c
In the early 1970s, Gary Dahl sold Pet Rocks. The product had a short, temporary period of unusually high sales driven by consumer enthusiasm and immediate product popularity, but then sales declined very quickly. The PLC sales pattern for Pet Rocks is known as ________________. A. a style B. a normal product life cycle curve C. a fashion D. a fad E. a failure
d
Which of the following statements is true regarding product life cycle curves? A. All products follow the traditional five-stage PLC model. B. Once a product reaches the decline stage, it cannot be recycled back to growth. C. Managing products through their life cycle is an easy task. D. The sales of a typical product follow an S-shaped curve made up of five stages. E. Marketing strategies do not change for different life cycle stages.
d
in which situation does your product face sales at an increasing rate?
growth
Major stages in new product development
idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialization
Commercialization
introducing a new product into the market
what stage does the product's growth start to slow down?
maturity
What are the stages of the product's life from inception to decline?
product development, introduction, growth, maturity, decline
How do you develop a product concept?
product idea -> product concept -> product image
Idea Screening
screening new product ideas to spot good ones and drop poor ones as soon as possible
product image
the way consumers perceive an actual or potential product
concept testing
Testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
New Product Development
The development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts.
test marketing
the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings
what is included in marketing strategy development? (three parts)
1. describes the target market; the planned value proposition; and the sales, market-share, and profit goals for the first few years 2. outlines the product's planned price, distribution, and marketing budget for the first year 3. describes the planned long-run sales, profit goals, and marketing mix strategy
product concept
A detailed version of the new product idea stated in meaningful consumer terms.
business analysis
A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.
represent an internal source of new product ideas for a company. A. Intrapreneurial programs B. Distributors C. Customers D. Suppliers E. Competitors
a
product idea
an idea for a possible product that the company can see itself offering to the market
Which of the following statements regarding socially responsible product decisions is correct? A. Safety legislation has been passed to regulate chemical substances, drugs, and poisons, but not toys, automobiles, or fabrics. B. The government may prevent companies from adding products through acquisitions if the effect threatens to decrease competition. C. When companies drop products, they do not have any obligations to suppliers, dealers, and customers. D. Manufacturers are generally not concerned with product liability. E. Companies can safely ignore patent laws.
b
To create successful new products, a company must _______. A. cut costs to keep the price of new products low while delivering acceptable quality B. focus its new product development efforts only on consumers and deliver value C. understand its consumers, markets, and competitors and develop products that deliver superior value to customers D. spend more on research and development (R&D) than its competitors and understand its consumers E. obtain successful products through acquisitions instead of doing internal development
c
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. milking the market B. market stimulation C. modifying the market D. market maintenance E. harvesting the market
c
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) ______________ approach to new product development. A. sequential B. crowdsourced C. customer-centered D. intrapreneurial E. systematic
e
what happens to profits in the introduction stage?
profits decrease, sales will be slow
After market strategy is developed, the next step of the new product development process is _______________. A. business analysis B. idea generation C. prototyping D. concept development E. commercialization
a
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas. A. crowdsourcing B. test marketing C. marketing strategy development D. business analysis E. concept development
a
How do you screen ideas?
The write-up describes the product or the service, the proposed customer value proposition, the target market, and the competition. Then answers R-W-W- real, when worth doing?
Which of the following would be an appropriate strategy during the growth stage of the product life cycle? A. Spend a lot of money on product improvement, promotion, and distribution. B. Use promotional spending to inform consumers and get them to try the product. C. Modify the market, product offer, and marketing mix. D. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy. E. Shift some advertising from building product awareness to building product conviction and purchase.
a
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. there would few competitors C. the company would see rising profits D. there would be lagging adopters E. the company could anticipate customers as innovators
c
Intuit Labs, a division of Intuit, the accounting and payroll software developer, follows a "Design for Delight (D4D)" development philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit using? A. Marketing strategy development B. Systematic new product development C. Crowdsourcing D. Customer-centered new product development E. Team-based new product development
d
Which of the following statements about new product development strategy is correct? A. New products are usually successful because consumers like new things. B. New products are not a major source of growth for companies. C. A new product will succeed as long as it is priced correctly. D. Good advertising creates successful new products. E. Innovation can be very expensive and very risky.
e
Which of the following statements is correct concerning service marketers going global? A. One industry that still has not globalized is retailing. B. The growth of global service companies is expected to decline in the near future. C. Due to the nature of their business, professional service firms cannot expand their business to foreign markets. D. Compared with product marketers, service marketers do not face any additional challenges when going global. E. The trend toward growth of global service companies is expected to continue in the near future.
e