Mktg 351 Ch. 12
Dan is a brand manager for the Ford Expedition and wanted to know how the Expedition and other competing vehicles were perceived by consumers. He used a _____, which allowed him to compare customer perceptions of each vehicle on two dimensions against customer ideal points.
perceptual map
If Duracell decides that its Quantum line of batteries is not reaching profit expectations and simply allows it to decline without any change to the marketing strategy, it would be using a(n) _____ deletion strategy.
phase-out
Fred works for a software company that is developing a new smartphone app. The company has developed a prototype and has asked Fred to put the prototype through rigorous testing to make sure the app works as intended. This is part of the _____ phase of the new-product development process.
product development
Jasmine is part of a team working on a new line of rugs designed for use on outdoor patios. During a meeting with the team, Jasmine asked whether they wanted to make the level of quality and durability of the new rugs higher than the quality level of their chief competitor. Based on her question, the team is most likely in which phase of the new-product development process?
product development
Dell offers a line of computers under the Alienware brand name that is specially designed for gamers. These computers have high-end graphic cards, extra RAM, faster processors, and a larger power supply. Dell is differentiating its Alienware line based on
product features.
When Jeep Wrangler produces the new year's model vehicle, they discontinue production of last year's. However, when Apple brings out a new iPhone, they continue to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a(an) _____ while Apple's is an example of a(an)______.
product modification; line extension
CompuSave manufactures entry-level tablet computers aimed at providing customers with a low-price option. In order to lower the price for customers, CompuSave replaced its existing tablet computer with one made with a more inexpensive touchscreen and a cheaper plastic case. This is an example of a(n)
quality modification.
"Does this new product idea meet our company's overall objectives?" is a question marketers would most likely ask during the _____ phase of the new-product development process.
screening
What step in the new-product development process may involve evaluators using a checklist of new-product requirements to reject most new product ideas?
screening
Senior management for a fast food burrito restaurant chain has developed a new pricing strategy. They have some doubt about whether the pricing strategy will be positively received by consumers. In this instance, they should probably proceed to the ____ stage of the new-product development process.
test marketing
Carmen from research and development, Jake from finance, Abby from marketing, Chris from production, and Deidra from engineering have been put together to develop a new line of headphones. These people are a(n) ______ at their company.
venture team
Early in the commercialization phase, marketers must make decisions about
warranties, repairs, and replacement parts.
The major drawback to making aesthetic modifications is
whether people value the modification is subjective.
Which of the following is the best example of a functional modification?
A smoke alarm is modified to be more sensitive to smoke at farther distances.
Which of the following is the best example of a functional modification?
Honda adds rear-view cameras to all of its new vehicles.
As head of sales and marketing for your company, one of your key responsibilities is to regularly review the company's product mix to determine if any products should be deleted. You are meeting with your marketing team to decide the fate of Product A. The following comments about Product A are made by different members of the team: "There are no strengths left in the product." "The losses on the product are huge and they keep growing." Which of the following actions should you take with Product A?
It should be immediately dropped from the product mix.
What is the primary distinction between a line extension and a product modification?
With a line extension, the original product remains in the product line, while in a product modification, the original product is replaced by the new product.
If Kraft were to introduce a new version of its Macaroni & Cheese using bow tie pasta and still continue to produce all of its other Macaroni & Cheese products, this would be an example of
a line extension.
A product manager is responsible for
a product, product line, or interrelated group of products in an organization.
If a local gym changes the music being played over the loudspeakers and replaces the wallpaper in the locker rooms, these modifications are most likely to be viewed as _____ modifications.
aesthetic
Sony's design of its new large-screen television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ____ modification; changes to make the TV's remote easier to use would be classified as a(an) ___.
aesthetic; functional modification
If the losses of a product are too great to prolong a product's life, the best strategy of deletion is
an immediate drop.
Functional modifications usually require that the product
be redesigned.
If Ruth were hired by Procter and Gamble and given total marketing responsibility over Tide Free and Gentle Liquid Laundry Detergent, she would hold the position of _____ manager.
brand
A(n) _____ in a multiproduct firm would be responsible for the performance of a single brand.
brand manager
A group of managers has been assigned the task of developing a new product. They are now in the process of determining a product idea's potential contribution to the firm's sales and profits. The managers are at what stage of the new-product development process?
business analysis
Darryl has been working on the product development of a new fertilizer that would be sold to landscapers. Darryl is currently analyzing potential costs associated with developing and distributing the fertilizer. Darryl is most likely in the _____ phase of the new-product development process.
business analysis
Carter is the product manager for Flintstones Children's Vitamins. They are in development of a new type of vitamin and have begun advertising the new vitamins on children's television shows and on the product's website. Based on this information, the vitamin is most likely in the _____ stage of the new-product development cycle.
commercialization
One disadvantage of test marketing is that
competitors may rush to introduce a similar product to the market.
During which phase of new-product development process does a company select a small sample of potential buyers and present them with a product idea to have them answer questions regarding their attitudes and purchase intentions?
concept testing
Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbucks' objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is ______________.
concept testing
Ron has been asked to take part in some marketing research. He has been shown a few drawings and been given a written description of a potential product. He has been asked questions such as "Do you find this product attractive?" and "How does this product compare to what you currently use?" Ron is most likely participating in which stage of the new-product development process?
concept testing
The new product team at a clothing manufacturer has generated many ideas for styles of new clothes and assessed whether the new clothes are consistent with the manufacturer's objectives and resources. During the assessment, several new ideas were rejected. The next step in the new-product development process is
concept testing
The degree to which a product has the same level of quality over time is called
consistency.
In product modifications, three conditions must be met to improve a firm's product mix: the product must be modifiable, the modification should make the product more consistent with customers' desires, and
customers must be able to perceive that a modification has been made.
Quality modifications are changes that relate to a product's
dependability and durability.
The members of a venture team come from
different functional areas of the organization.
Seventh Generation is developing a new type of organic body wash that is going to be higher in price than the competition, but provides superior performance characteristics compared to other organic body wash brands. They should most likely use _____ positioning for the new body wash.
head-to-head
Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the ____ phase of new-product development.
idea generation
Samsung wants to add features to the upcoming version of its Galaxy S smartphone. They have asked their engineers and other employees to submit possibilities for new features. Samsung is currently in the _____ phase of the new-product development process.
idea generation
When a company such as Chevrolet looks at social media and reads online reviews from customers to identify the features that customers want, they are engaging in which phase of the new-product development process?
idea generation
Product deletion
is often a difficult decision for management to make.
Taylor is a product manager for Coleman's line of tents and recently discovered that Eureka, one of their competitors, was in the process of test marketing a new type of six-person tent in the Rocky Mountain region. He might decide to try _____ in order to reduce the validity of Eureka's results.
jamming
Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of ____ is relative or difficult to describe without a basis of comparison.
level of quality
When a company develops a product that is closely related to a product in its existing product line but is designed specifically to meet somewhat different customer needs, this is known as a(n)
line extension.
Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Josh's job is that of a(n) ________.
market manager
A cereal manufacturer has decided to delete one of its brands of cereal that is not satisfying a sufficient number of customers. They will delete the cereal by letting it decline and not changing its marketing strategy in a process called
phase-out.
If Pedigree offered you a position in which you would have total marketing responsibility for all of its canned dog food, this position would probably hold the title of ____ manager.
product
Kim is currently building a working model of a new motorized scooter for kids to ride. She is engaged in which phase of the new-product development cycle?
product development
Marketers make determinations as to whether a new product is technically feasible to produce and whether the cost of production will be low enough to proceed during
product development.
Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those made for racing. In addition, Schwinn has added several new features to its bike that are attractive to individuals who work as "bike messengers" in large, urban cities. Since no other company makes a bike that has these specific attributes, Schwinn is creating ___________.
product differentiation
All of the following are major steps in developing new products except
product differentiation.
Whirlpool has developed a new washing machine that provides new technology that can sense the needs of each load of laundry and adjust the water levels and wash actions to make clothes cleaner while being gentler on the fabric. They also have added new features such as the ability to spray detergent directly and evenly on clothes and an option to steam clean. Since their competition does not make a washing machine with these features, Whirlpool is creating
product differentiation.
TerraCycle is a company that takes waste and "upcycles" it into new products. Currently, TerraCycle markets a bicycle rack to schools, parks, and cities that is made of recycled plastic. This rack does not scratch or damage the bikes as concrete and steel racks can, and is eco-friendly since it is made of waste material. TerraCycle is differentiating its product based on ___________.
product features
The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is
product positioning.
Dwayne is downloading the latest update for an app on his phone. Before downloading the app, he was able to read about the bug fixes that make the app have fewer errors and look at images showing the new easy-to-use interface for the app. Dwayne was able to learn about the _____ modifications by looking at the bug fixes and the _____ modifications by looking at the pictures of the interface.
quality; functional
In consumer markets, buyers find ____ to be important characteristics for quality, while _____ are important quality characteristics in business markets.
reliability and durability; company reputation and ease of repair
Suave shampoo used a series of commercials with the slogan "Can you tell?" in an attempt to show that people could not tell if a person washed their hair with Suave or a more expensive shampoo. Using this process, Suave was able to _____ itself from a value brand to a quality brand.
reposition
Lay's decided to initially launch a new flavor of potato chips in Columbus and Cleveland, Ohio. After it was successful in those two areas, the market for the flavor was expanded to the rest of Ohio before expanding to Indiana, Michigan, West Virginia, and Kentucky. After its success in those states, the flavor was introduced nationally. The chips were launched using a
rollout
Sometimes companies will decide to launch products in stages rather than all at once in a process called
rollout
Christine and Donna work for a manufacturer of frozen pastries and are deciding how to delete a line of frozen waffles. Christine favors focusing on a core market and intensifying advertising directed at that market to try to have a temporary jump in profits. Donna, however, believes the marketing strategy should be unchanged and the product should decline without attempting to give the line new life. Christine favors a(n) ____, while Donna favors a(n) _____.
run-out; phase-out
Chase Bank offers a credit card that it differentiates from competing cards by providing a toll-free phone number that connects directly with a customer service agent rather than an automated system. Chase is differentiating this credit card through
support services.
Emma had a new pool installed in her backyard by Valley Pool. Valley Pool includes a one-year maintenance plan that provides pool cleanings for one year and allows Emma to call a toll-free phone number if there are any problems with the pool. Valley Pool is most likely differentiating itself through
support services.
The product development team at Burger King has been working on a new sandwich to be added to the menu. The company has developed a prototype that they feel will be successful. In order to avoid competitors coming to market with a similar menu item before they commercialize the sandwich, Burger King's management is contemplating skipping the _____ phase of the new-product development cycle.
test marketing
Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) ____ at their company.
venture team
Ideally, test marketing would precede which stage in the new-product development process?
commercialization
A company that has made a change to a product to improve the product's versatility, effectiveness, convenience, or safety has made a(n) _____ modification.
functional
Product deletion can best be described as the process of deleting a product from the product mix when it
no longer satisfies a sufficient number of customers
If Kimberly-Clark's Cottonelle brand of toilet paper offered you a position where you would have total marketing responsibility for all of its flushable wipes, this position would probably hold the title o
product manager.
In order to delete products, companies should periodically evaluate each product to determine its impact on the overall effectiveness of the firm's product mix. This process is called a
systematic review.
Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development.
False
Quality modification of an existing product aims at changing the product's safety, convenience, or versatility.
False
To manage products effectively, the product manager must be independent of other departments.
False
Your company is preparing to launch a new product next month. Since you are leading the launch effort, you called a meeting of all stakeholders to discuss how the product should be positioned in the market. You acknowledge that the product will carry a higher price than competing products, but all the independent rating agencies have concluded that the product has superior performance characteristics relative to its competing brands. Which of the following bases for positioning should you use for this product?
Head-to-head competition should be the basis for positioning the product.
Your company has an outdated technology product that is struggling in the market. The product appears to have some strength left that might be able to be exploited. Which of the following product deletion strategies would be most appropriate for the product?
Intensify marketing activities on a core market.
Which of the following statements about test marketing is true?
Test marketing allows marketers to expose a product in a natural marketing environment to measure sales performance.
When Ana was visiting her family in Illinois, she found a new type of granola bar she had never seen before. When she returned home to Texas, she could not find the bars in any store. Which of the following reasons most likely explains why she could not find the flavors in Texas?
The bars were in the early stages of a rollout.
If you buy McDonald's French fries in Fort Collins, Colorado, and later buy McDonald's French fries in College Station, Texas, you expect them to be of the same quality. This is referred to consistency of quality.
True
Repositioning can occur by changing a product's price or distribution.
True
The run-out approach to product deletion generates a sales spurt just before removing the product from the market.
True
If a company is introducing a brand into a market and its characteristics do not differ significantly from the competition, it would likely choose which of the following for positioning the new product?
avoid competition
Taylor is part of a team working on a new talking teddy bear that would teach children math. Leesa, his manager, has asked Taylor to look at market information to forecast sales of the teddy bear to determine whether there will be enough sales to justify developing the product. She is asking Taylor to proceed with which stage of the new-product development process?
business analysis
Dylan is working on a team to finalize the budget and the marketing plan for a new dishwasher he has been developing at Whirlpool. He is in the _____ phase of the new-product development process.
commercialization
Sarah is analyzing the results of a test market for a new line of workout clothing. Since she is trying to determine if any changes need to be made to the marketing mix, she is in the _____ phase of the new-product development process.
commercialization
During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _____, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product, and _____, which evaluates the potential impact of the product idea on the firm's sales, costs, and profits.
concept testing; business analysis
William manufactures office chairs. He has studied ergonomics to develop a chair that is more comfortable than other chairs on the market. He also offers a lifetime warranty that allows people who buy his chairs to have anything repaired or replaced if broken. William is most likely differentiating through _____ with the comfort level and through _____ with his warranty.
design; support services
Xavier has gone to the store to shop for a new USB drive. He finds the same brand he has bought in the past but notices that the capacity of the smallest one available in the store is more than triple the capacity of the one he currently has. The drive has undergone a(n) _____ modification.
functional
When a smartphone manufacturer adds wireless charging so that the phone needs to be placed on a charging pad rather than having to plug it in, the manufacturer has made a(n)
functional modification.
Crest updating the cap of a tube of toothpaste to make it easier to get toothpaste out would be classified as a(n) _____ modification; a redesign of the logo and colors used on the tube to make them more visually stimulating would be classified as a(n) _____ modification.
functional; aesthetic
Kristen and Patti work for a toy manufacturer and are deciding how to delete a line of unprofitable dolls. Kristen believes that the dolls have become enough of a burden that they should halt production. Patti, however, believes there is still a core market for the dolls and they should intensify advertising toward that market in hopes of some increased profits. Kristen is in favor of a(n) ____, while Patti's strategy is a(n) _____.
immediate drop; run-out
Kyleen thinks that the meal she ate at Outback Steakhouse was high in quality. However, she found a dinner she had last week at a five-star restaurant to have much higher quality. This example points out that the dimension of _____ is relative and may be difficult to describe without having a basis of comparison.
level of quality
Whenever Apple releases a new version of its iPad, it continues to produce and market previous versions for some period of time. However, Honda stops production of the prior year's model of its Civic when they launch the new year's model. Apple's new product strategy is a _____, while Honda's strategy is an example of a(n) _____.
line extension; product modification.
Doritos has expanded beyond its original Nacho Cheese flavor to Cool Ranch, Jacked, Spicy Sweet Chili, and Salsa Verde, to name a few. These are examples of
line extensions.
Gene works in the uniform and apparel division of Cintas. He has responsibility for managing the marketing activities for uniforms aimed at restaurants and dining facilities. Gene's title is
market manager.
A run-out strategy of product deletion
may focus on intensifying marketing efforts in a core market.
Gillette introduced the Mach3 in 1998. It had a powered wet shaving system and three blades. Gillette claimed that the blades of the Mach3 had the thinnest edges of all of its products. The Mach3 was just one of the many technologically advanced razor products that Gillette and its competitor Schick have released over the years. Dollar Shave Club, however, operates on a different premise. It claims that razor blades are too expensive and that all the bells-and-whistles are not necessary. Founder Michael Dubin realized that men do not change their razor blades as often as they should because of the expense and inconvenience of having to pick them up at the store. His firm offered users a subscription service where it would deliver quality razor blades to the door of members. Dollar Shave Club got so many members in such a short time that its servers crashed. Its service became so popular that Gillette began offering its own subscription based service. Gillette has also started focusing more on creating value than overpowering consumers with the latest technology. The Mach3 would be an example of a ____________________. Dollar Shave Club would be an example of a ____________________.
new product; disruptive innovation
Katrina works for Samsung and is working on developing a new type of television set. She knows that introducing a new product is risky, but it is also risky to
not introduce new products.
Lana works in the finance department of Unilever. She is currently part of a cross-functional group that has been put together to determine the feasibility of a new line of deodorants and antiperspirants. After the product has launched, Lana will return to her position in the finance department. Lana is currently a
part of a venture team.
Jim is a marketing manager for Tylenol Cold and wanted to know how Tylenol Cold and other competing products were perceived by consumers. To do this, he surveyed a sample of customers about all of the different competitors on two dimensions and created a ____________
perceptual map
If Splenda decides its "Splenda with Vitamins" is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) ____ deletion strategy.
phase-out
