MRKT CH 11

A variety of factors can affect the accuracy of forecasts during business analysis. For example, establishe= markets like soft drinks are easier to forecast. But forecasting the size of new or niche -markets is more of a challenge.

ESTABLISHED, NEW OR NICHE

Which of the following products is more likely to be diffused quickly? a. A product that is easy to try on a limited basis b. A product that is very complex c. A product that is essentially the same as existing substitutes d. A product whose benefits are hard to observe or communicate

a. A product that is easy to try on a limited basis

Which group of adopters is an important link to the late majority and helps new products reach a tipping point in diffusion? a. Early majority b. Laggards c. Innovators d. Early adopters

a. Early majority

The decision to market a product is called _______. a. commercialization b. test marketing c. business analysis d. new-product strategy

a. commercialization

Because product development can be time consuming and expensive, companies want to _______. a. develop products that are marketable worldwide b. develop unique and specific products for each market, regardless of market size c. develop products that disregard the regulatory environment in different countries d. develop products that require expensive modifications

a. develop products that are marketable worldwide

The first group to adopt new products are called _______. a. innovators b. early adopters c. late minority d. laggards

a. innovators

Products that are new and improved versions of existing products would be considered _______. a. revisions of existing products b. additions to existing product lines c. new-to-the-world products d. lower priced products

a. revisions of existing product

Which of the following will most likely contribute to the failure of a product? (Select three) a. Superior product when compared to alternatives b. Inadequate distribution c. Inferior product when compared to alternatives d. Massive and expansive distribution e. Poor marketing

b. Inadequate distribution c. Inferior product when compared to alternatives e. Poor marketing

Products that supplement a firm's established product line would be considered _______. a. lower priced products b. additions to existing product lines c. repositioned products d. new product line

b. additions to existing product lines

The stage of the PLC where sales revenue peaks due to market saturation is the _______. a. growth stage b. maturity stage c. decline stage d. introductory stage

b. maturity stage

A good reason to invest in new-product development is _______. a. to cut research and development budgets b. to sustain company growth c. to let competitors offer better alternatives d. to rely on existing products forever

b. to sustain company growth

What type of failure has occurred when a new-product introduction loses money for the company when accounting for development, marketing, and production costs? a. Predictive failure b. Relative failure c. Absolute failure d. Strategic failure

c. Absolute failure

In order to maximize profits for a new product, marketers will ideally _______. a. assume that regulatory environments are the same worldwide b. engineer the products in a way that is hard to modify c. create products that require little or no modification when sold globally d. customize the product for each different market

c. create products that require little or no modification when sold globally

The stage of the PLC where companies focus on increased distribution among wholesalers and retailers is the _______. a. introductory stage b. decline stage c. growth stage d. maturity stage

c. growth stage

The stage of the product life cycle (PLC) where profits peak is the _______. a. introductory stage b. maturity stage c. growth stage d. decline stage

c. growth stage

In the business analysis stage, _______. a. ideas are generated from a variety of sources, such as customers and distributors b. ideas are screened for fit with the organization's new-product strategy c. ideas are evaluated by projecting cost, sales, and profitability d. ideas are commercialized

c. ideas are evaluated by projecting cost, sales, and profitability

There are pros and cons to test marketing. Which of the following is true about test marketing? a. It simplifies business operations. b. It's riskier than a full nationwide launch. c. It keeps competitors from knowing about your potential new products. d. It can be expensive and take a long time.

d. It can be expensive and take a long time.

Which step in the product development process defines the types of products the organization wants to offer and the markets it wants to serve? a. Idea screening b. Business analysis c. Idea generation d. New-product strategy

d. New-product strategy

Test marketing a product happens _______. a. after commercialization b. before idea screening c. before defining new-product strategy d. after development

d. after development

Products that look promising after the business analysis stage of product development then proceed to the _______. a. commercialization stage b. new-product strategy stage c. idea screening stage d. development stage

d. development stage

After ideas have been generated, the next step in the product development process is _______. a. test marketing b. commercialization c. new-product strategy d. idea screening

d. idea screening