ch.12 marketing

Product development entails a variety of processes and considerations to determine which aspects of a product or service?

Form and features

Product development or product design entails a process of balancing which types of considerations? (Choose every correct answer.)

Manufacturing Marketing Engineering

Without innovation, what options would be available to firms? (Choose every correct answer.)

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

New products and services that consumers accept quickly will have a high Blank______ rate early in their product life cycles, which will accelerate the diffusion process across the various stages.

adoption

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk Blank______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

diversification

_______is the process by which ideas are transformed into new products and services that will help firms grow.

innovation

Those consumers who enter the market for the first time during the decline stage are known as Blank______.

laggards

When Burger King introduced the new Whopper Bar to a limited geographic area prior to a national launch, it was engaging in Blank______.

test marketing

True or False: If market testing returns with positive results, the firm is then ready to introduce the product to the entire market, which is called a product launch.

true

True or False: Managers can use the product life cycle model to help predict what pricing, product, promotional, and placement strategies they should employ at each of the four stages.

true

The problem with using the product life cycle concept is that no one can predict the shape that the product's life cycle will take; therefore, it is impossible to know Blank______.

which stage the product is in

If a firm has positive results from market testing, the next step will be the ____ ______?

product launch

Laggards make up roughly Blank______ of the market.

16%

Which of the following is a way by which risk can be diversified?

By creating a broader portfolio of products through innovation

What might a concept include along with a brief written description of the product? (Choose every correct answer.)

Customer needs it satisfies Visual images

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

Evaluation of results

Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product?

It is better than its substitutes.

What will happen to a firm if it continues to produce the same products in a saturated market?

It will eventually decline.

______ are consumers who like to avoid changes and rely on traditional products until they are no longer available.

Laggards

Some markets demand a higher frequency of new product releases than others. In which of the following markets do sales come from new products? (Choose every correct answer.)

Movies Video games Books

What objectives do firms have in adding new products, services, and processes to their offerings? (Choose every correct answer.)

To satisfy the changing needs of consumers To keep customers from getting bored with existing products

Adding new products is MOST likely to prompt consumers to purchase in which of the following industries?

Video games

What does a postlaunch review help determine? (Choose every correct answer.)

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

Early ______are the category of consumers who begin to use a product or service immediately following innovators. (Remember to type only one word in the blank.)

adopters

_____of innovation 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. (Enter one word in each blank.)

diffusion

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, is known as Blank______.

diffusion of innovation

Along the diffusion of innovation curve, Blank______ make up the second group of consumers to adopt an innovation; they tend to be leaders in a social setting.

early adopters

In terms of their place on the diffusion of innovation curve, innovators are the Blank______ category of consumers.

first

______generation refers to the first stage in the process by which firms develop a new product.

idea

____generation refers to the first stage in the process by which firms develop a new product.

idea

While the Blank______ is first to adopt the item, the Blank______ adopts next.

innovator; early adopter

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

The _____stage of the life cycle for a new product or service category usually starts with a single firm, and innovators are the ones to try the new offering.

introduction

When the _____ majority of consumers enters the market, the market reaches its full market potential.

late

A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the product ______cycle.

life

Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior?

test marketing

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

the product life cycle

Firms need to continue to innovate because customer needs Blank______.

are constantly changing

A ____ is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.

concept

Usually, during the ____ stage of the product life cycle, the typical consumers are early adopters, and there are increases in the number of competitors.

growth

Although there are numerous stages in the product development process, every firm starts to develop new products through Blank______ and then finishes with an evaluation of Blank______.

idea generation; results

Which of the following processes could be considered an acceptable method for generating ideas? (Choose every correct answer.)

Communicating with a firm's R&D department Researching competitors' products and services Conducting consumer research Brainstorming within the firm

What are the key characteristics of the growth stage of the product life cycle? (Choose every correct answer.)

Sales rise Competitors increase

Usually, during the______ stage of the product life cycle, the typical consumers are early adopters, and there are increases in the number of competitors.

growth

During the Blank______ stage of the product life cycle, the market for the product usually becomes saturated.

maturity

During the decline stage of the product life cycle, Blank______ who have not yet tried the product or service will be entering the market for the first time.

laggards

The _____stage of the product life cycle is characterized by the adoption of the product by the late majority and good profitability. (Remember to type only one word in the blank.)

maturity

What is a key characteristic of the maturity stage?

Firms defending market share

While late to the party, the late majority category of consumers is still significant, making up roughly Blank______ of the total consumer market.

34%

The early majority represents approximately Blank______ of the total consumer market and is crucial to the profitability of a product or service. Without them, the product or service will typically fail.

34%

Which of the following factors influence how rapidly a product will move through the product life cycle? (Choose every correct answer.)

How valuable the product is to the consumer How different the product is from other offerings in the market

The Apple iPod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with substantial improvements over portable CD players. This is an example of a relative _____ within the diffusion process.

advantage

The Apple iPod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with substantial improvements over portable CD players. This is an example of a relative_____ within the diffusion process.

advantage

A _____ is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.

concept

The _____ _______ of users representing approximately 34 percent of the population on the diffusion of innovation curve is crucial because few new products and services can be profitable until this large group buys them. (Enter one word in each blank.)

early majority

True or False: New products must be targeted toward end consumers.

false

The product development process can be diagrammed as a sequential process. Place the stages in order, with the first stage at top.

idea generation concept testing product development market testing product launch evaluation of results

A company that develops a new merchandise tracking technology that automatically notifies suppliers when a new shipment is needed is using its new product to:

improve business relationships.

New product and service innovation is important because the longer a product or service exists in a given marketplace, the more likely that the market will become Blank______.

saturated