CH.12
performance of a specific brand.
A brand manager in a multiproduct firm would be responsible for
evaluation of competitors' efforts.
All of the following are major steps in developing new products except
losses are too great to prolong the product's life.
Dropping an unprofitable product immediately is the best strategy when
consistency
The ability of a product to provide the same level of quality over time is called
is a sample launching of the entire marketing mix.
The test-marketing stage
functional modification.
When Conair adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour. This improvement would best be classified as a(n)
radically new product.
a complex product development process, including an extensive business analysis to determine the possibility of success, are hallmarks of a
c) not introducing new products.
34. Introducing new products is risky and so is
Test marketing
60. Product failure is a concern of all marketers. Which of the following phases of new-product development is best able to measure this concern?
product manager
A ______ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.
innovative benefits to consumers.
A genuinely new product—like the iPhone once was—offers
functionality
After a company has created a prototype during the product development stage, its performance, or ___________ must be tested.
Product development
After building a prototype of his new device, Brad is asked to conduct rigorous functional testing to see if the device meets performance and safety qualifications. This is part of the ____ phase of the new-product development process.
product development
As Justin works on the prototype of a new action-oriented computer game, he is engaging in which phase of the new-product development process?
customer services
Best Buy differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. Best Buy is differentiating through
Business analysis
Breakeven analysis is a tool that marketers are likely to employ during the ___________ stage of the new-product development process.
functional
Changes that affect a product's versatility, effectiveness, convenience, or safety are called ___________ modifications.
a) aesthetic
Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ___________ modifications.
screening
Compared with other phases of the new-product development process, the largest number of new-product ideas is rejected during the ___________ phase.
jamming
Competitive interference with a test-marketing program is called
screening
Concerns about cannibalization of current product sales must be addressed in the ___________ phase of the new-product development process.
warranties, repairs, and replacement parts.
Early in the commercialization phase, marketers must make decisions about
redisigned
Functional modifications usually require that the product be
Product development
Ideally, test marketing should follow which stage in the new-product development process?
phase-out
If 7-UP decides Diet 7-Up with Vitamins is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a ____ deletion strategy.
product support services.
If Hewlett-Packard provides its customers with a help line for computer questions and problems, it is differentiating itself through
product
If Kraft General Foods offered you a position in which you would have total marketing responsibility for all of its cheese products, this position would probably hold the title of __________ manager.
line extension
If the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
Business analysis
Is the demand strong enough?" is a question that marketers ask during the ___________ phase of new-product development.
Business analysis
Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process?
product development.
Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during
phase out.
Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called
competitors may copy the product.
One disadvantage of test marketing a new product is that
may be opposed by management.
Product deletion
no longer satisfies a sufficient number of customers.
Product deletion can best be described as the process of deleting a product from the product mix when it
dependability and durability.
Quality modifications are changes that relate to a product's
a) concept testing.
Questions such as "How often would you buy this product?" and "Which features are of little or no interest to you?" are often proposed during
Test marketing
Sales and cost analyses occur most frequently in what stage of the new-product development process?
product differentiation.
Schwinn adds features to its bicycles no other companies offer in order to create
different functional areas of an organization.
The members of a venture team come from
quality
The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is
aesthetic, quality, and functional changes.
The three major ways to modify a product include
product quality, product design and features, and product support services.
Three major ways in which marketers engage in product differentiation are
Screening
What step in developing new products involves determining whether the product idea is compatible with company objectives, needs, and resources on a general level?
design, styling, and features.
When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's
Idea generation
When marketers at Nabisco meet to identify the types of snacks that young people want, they are engaging in which phase of new-product development?
Specific design characteristics that allow a product to perform certain tasks
Which of the following is the best definition of product features?
They are less expensive and lower-risk.
Why are line extensions more common than new products?
Line extension
__________ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.
Ease of maintenance/company reputation; durability/technical suitability
___________ and ___________ are important characteristics of quality for consumer markets, and ___________ and ___________ are important characteristics of quality for business markets.
business analysis
the product deletion process is similar to the ___________ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits.
product features.
85. If Ford adds a driver-side sliding door, side impact airbags, and a small television with DVD player to its Freestar Minivan, it is differentiating its product based on
Screening
A group of managers has been assigned the task of developing a new product, has listed several good ideas, and is now in the process of assessing each idea to determine whether it is consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?
roll-out approach
A new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a _____ for its new variety of Doritos.
exploits any strengths left in the product.
A runout policy of product deletion
systematic review.
A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)
line extension
A(n) ___________ is the development of a product that is closely related to one or more products in the existing product line but is designed specifically to meet somewhat different needs of customers.
quality modification.
Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)
line extensions.
Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples of
Business analysis
During which stage of new-product development does the firm consider profitability?
aesthetic
If Conway School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) __________ modification
brand
If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of __________ manager.
aesthetic modifications
If buyers choose certain types of products by the way they look, smell, taste, or sound, marketers should focus most on appropriate
the product is modifiable.
In product modification, the first issue to consider is whether
modification should make the product more consistent with customers' desires.
In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers must be able to perceive that a modification has been made, and
roll-out.
Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as
Test marketing is a limited introduction of the product in areas chosen to represent the intended market
Select the true statement concerning test marketing.
aesthetic
Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ___________ modification.
commercialization
Stacey and Evan are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new Genie-Vac. They are in the ____ phase of the new-product development process.
venture team
The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the _________ approach.
that the value of the modification is determined subjectively
The major drawback to using aesthetic modifications is
Product development
The phase of the new-product development process when the organization determines the technological feasibility of producing the product at a cost that results in a reasonable selling price is
consumers perceive all products in a market to have essentially the same quality, design, and features
To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when
level of quality
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.
commercialization
When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ___________ phase of the new-product development process.
It allows competitors to monitor the results of the new product.
Which of the following is a disadvantage of gradually introducing a product to market?
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?
Concept testing
Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea?
Concept testing
Which of the following phases of new-product development is likely the least costly for the firm?
Quality
Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?
With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension.
What is the primary distinction between a line extension and a product modification?
test marketing
Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ___________ stage of the new-product development process.
real product differences; perceived product image
Elena recently purchased a pair of sunglasses because she liked their quality, styling, and price. Her friend Katie purchased an almost identical pair, except that Katie's sunglasses had the name "Armani" imprinted on the side. Elena probably based her purchase decision on ___________, whereas Katie apparently based her decision on ___________.
venture team
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.
Product development
How much quality should we build into the product?" is a question that marketers ask during the ___________ phase of new-product development.
market manager
Kyle Bolger of U.S. Hospital Supply Corporation has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Kyle's job is that of a(n)
member of a venture team.
Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a group to determine the feasibility of a new brand of hot breakfast cereal. After the product is launched, Luis will return to the accounting department. His present position can be described as a
concept testing.
Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbuck's objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is
idea generation
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.
Tourism is a major industry in the area.
PepsiCo has a new flavor of soft drink that it wants to test to determine reactions of probable buyers. Which of the following test-market characteristics would be least useful to PepsiCo when testing the new soft drink?
concept testing.
The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called
test marketing
Top managers at Cincinnati Microwave believe that they have a successful working prototype of their new radar detector and plan to go directly to regional commercialization of the new product. In this instance, they are contemplating skipping the __________ phase of the new-product development process