marketing chapter 9 final

A style is best defined as a ________.

basic and descriptive mode of expression

Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.

consider the sales history of similar products

New-product development starts with ________.

idea generation

What is included in the first part of a marketing strategy statement?

target market description

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new-product development process. Fantastic Flavors uses a ________ approach.

team-based new-product development

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.

timing

Which of the following statements is true of test marketing?

Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

Why are customers often considered the most important sources of new-product ideas?

The company can analyze customer questions and complaints to find new products that better solve consumer problems.

Which of the following statements is true of the idea generation stage in the new-product development process?

Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source.

Which of the following statements is true of the new-product development process?

Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.

A product idea is ________.

a possible product that the company can see itself offering to the market

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.

acquisition

Which of the following involves costs that most likely occur during the commercialization stage of new-product development?

building or renting a manufacturing facility

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.

business analysis

Which stage of new-product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?

business analysis

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new-product development process before P&G could.

commercialization

Under a team-based new-product development approach, ________.

company departments work closely together in cross-functional teams

Which of the following is an internal source for new-product ideas?

company executives

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

controlled tets market

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new-product innovation process?

crowdsourcing

Which of the following is included in the second part of the marketing strategy statement?

customer segmentation

Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

customer-centered new product development

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

decline

Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC.

decline

________ is the product life cycle period when sales fall off and profits drop.

decline

Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?

develop a planned market rollout over time

&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to ________ the products.

drop

All of the following are disadvantages of test marketing EXCEPT that test marketing ________.

encourages dishonesty among participants

Flurrbies, a brand of unique winter accessories that quickly fell in and out of favorability with customers, is an example of a ________.

fad

The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s. This is an example of a ________.

fashion

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to check competition. Kellogg's is in the ________ stage of the product life cycle.

growth

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

growth

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

growth

When Kraft focused on cost-cutting with its older, established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.

harvest

According to the text, the search for new-product ideas should most likely be ________.

holistic

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new-product development process does this exemplify?

idea generation

Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage.

idea screening

In the new-product development process, the first idea-reducing stage is ________.

idea screening

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.

image

Which of the following is a consequence of standardizing an international product?

image consistency

Which of the following is a common reason for new product failure?

incorrect estimation of the market size

A company can install a(n) ________ management system to collect, review, evaluate, and manage new-product ideas.

innovation

Many companies have developed ________ programs that encourage employees to develop new-product ideas.

intrapreneurial

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?

introduction

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

marketing strategy development

Which of the following stages in the new-product development would a firm engage itself in immediately after the completion of concept testing?

marketing strategy development

Apple's iPod has been called "one of the greatest consumer electronics hits of all time." iPods have been sold in huge numbers, and Apple captures a large share of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.

maturity

Most products in the marketplace are in the ________ stage of the product life cycle.

maturity

Over the past few years, Binney and Smith's Crayola crayons have been preferred by users in more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

maturity

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

maturity

When a product is in the maturity stage, the company should most likely consider ________.

modifying the product, market, or marketing mix

Product improvements, product modifications, and original products can all be classified as ________.

new products

Which of the following is a significant challenge presented by the product life cycle?

new-product development

P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.

one of the problems associated with test marketing

Which of the following would lead to greater competition in the maturity stage of the PLC?

overcapacity

Because of ________, a company cannot make its product illegally similar to a competitor's already established product.

patent laws

CellTones, a new company selling several types of cellular phones, has closely modeled its products after successful products that are already in the marketplace. As it prepares to enter the market with its new products and services, which of the following should concern CellTones the most?

patent laws

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.

product

A detailed version of a new idea stated in meaningful customer terms is called a ________.

product concept

An attractive product idea must be developed into a ________.

product concept

In the ________ stage of the new-product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

product development

Which of the following stages of the new-product development process occurs immediately after the completion of the business analysis for the product or service?

product development

A ________ is the way consumers perceive an actual or potential product.

product image

Which term refers to the course that a product's sales and profits take over its lifetime?

product life cycle

Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Sandy the Flying Squirrel, a character from the show targeted to baby boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new launch strategy for Bubble consistent with the intended ________.

product positioning

Manufacturers must comply with specific laws regarding ________.

product quality and saftey

The PLC concept can be applied by marketers as a useful framework for describing how ________.

products and markets work

A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________.

prototype

Some products that have entered the decline stage have been cycled back to the growth stage through ________.

repositioning

Which of the following best characterizes the decline stage of product development?

sales and profits decline

Which of the following is the goal of the team-based new-product development approach when it uses cross-functional teams that overlap the steps in the process?

save time and increase effectiveness

Introducing a new product into the market is called ________.

segmentation

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.

simulated test market

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?

standard test markets

Which of the following is a disadvantage of a team-based approach to new-product development?

It results in organizational confusion and tension.

Which of the following statements best explains why idea screening may be the most important step of new-product development?

It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.

Which of the following is an external source for new-product ideas?

suppliers

A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?

Product research was too extensive.

Which of the following statements characterizes the introduction stage of the PLC?

Profits are nonexistent.

Which of the following groups do marketers involve for the process of concept testing new products?

target consumers

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

test marketing

Acquisition refers to ________.

the buying of a whole company, a patent, or a license to produce someone else's product

Which of the following is included in the third part of the marketing strategy statement?

the planned long-run sales

Which of the following would most likely be included in an executive's write up of a new-product idea to be presented to a new-product committee?

the proposed customer value proposition

Which of the following is the most likely reason that employees regularly attend trade shows and seminars?

to get new-product ideas

Which of the following best describes the role of a product steward?

to protect the company from liability by proactively ferreting out potential product problems

Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?

when the costs of developing and introducing the product are low

A company getting ready to launch a new product must make several decisions. The company must first decide on ________.

when to introduce the product

According to the commercialization stage of the new-product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.

where to launch the new product

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

whether to launch the new product

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

yields a larger number of new product ideas

________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

Sequential product development