Marketing Exam 3 - Chapter 12 (Developing New Products)
New products & services that consumers accept quickly will have high ________ rate early in their product-life cycles which will accelerate the diffusion process across various stages
Adoption
When B&J ice cream tests all of its new flavors on its own employees at corporate headquarters what type of testing is that?
Alpha Testing
Although there are numerous stages in the product development process every firm starts to develop products through _______ & finishes with an evaluation of _______.
Idea Generation, Results
During _______ stage of product life cycle typical consumers are early adopters & there would be an increase in the number of competitors
Growth
During the ____ stage sales increase but many competitors can't get a significant market share & exit
Growth
During the ______ stage of the PLC - firms attempt to reach new consumers by studying their preferences and producing many competing & different product variations
Growth
Firms must continually introduce new products with improved features and find new uses for existing products in order to defend its current market share amid intense
Competition
Without innovation what options are available to firms?
Continue to market current products to current customers & Take current products to new markets
What steps have firms taken that have products in the decline stage?
Create a niche segment, completely exit the market
The process by which use of an innovation (product or service) is spread throughout a market group over time and various categories of adopters is known as
Diffusion of Innovation
Firms feel compelled to add new products to their offerings in order to satisfy the changing needs of current & new.
Domestic & foreign markets
Which diffusion of innovation adopter group waits until the "bugs" are worked out of a particular product to avoid risk?
Early Majority
Product development or product design entails a process of balancing which types of considerations
Engineering, Manufacturing, Marketing
When a firm launches a new product it needs to review the sales and profit levels of the product to determine if product is successful. What is this called?
Evaluation of Results
_________ is the process by which ideas are transformed into new products and services that will help firms grow
Innovation
When the ______ is first to adopt the item often it its extreme form the ____ adopts next
Innovator, Early Adopter
__________ is when a company launches a new product in a limited geographical area to see if it has the potential to be successfully introduced nationwide
Market Testing
During the ______ stage of the PLC - market for product usually becomes saturated
Maturity
In the ______ stage of the product life cycle a firm may want to start looking for new market segments in order to find new opportunities
Maturity
What are some advantages experienced by pioneer firms over later entrants
More likely to command a greater market over a longer period , More readily recognizable to consumers, Establish an early market share lead
BKing launched the whopper bar serving beer as well as burgers in a test market in Miami. Which would have been a good plan for this?
Offering the complete menu planned for the full launch & Running TV ads planned for the full launch
A ________ 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
Key characteristics of the introductions stage are:
Profits are low & start up costs are high
In distinguishing between firm strategies for developing new products a pioneer firm will be more likely to rely on its ________ whereas a follower firm will be more likely to ________ for ideas
R&D Market, Scan the market
The _______ department can be considered an investment into a companys future in which scientists work to solve problems and develop new ideas
Research & Development
Which of the following process could be considered acceptable for generating ideas
Researching competitors' products, services, brainstorming with firm, conducting consumer research, communicating with a firms R & D department.
New product and service innovation is important because the longer a product or service exists in a given marketplace more likely the market will become
Saturated
In concept testing
a statement is presented to potential buyers or users to obtain their reactions
Using in house ______ testing the company attempts to determine whether the product prototype will perform according to its design & whether it satisfies the need for which it was intended
by performing tests in the R & D Department, Alpha Testing
When firms develop new products
it is a long process broken into how many stages, Six
