Principles of Marketing Ch 12

The product development process can be diagrammed as a sequential process. Place the stages in order, with the first stage at top.

1. Idea generation 2. Concept testing 3. Product development 4. Market testing 5. Product launch 6. Evaluation of product's success

During test marketing, the potential elements of the marketing mix that may be used include which of the following?

Advertising & Coupons

Testing on a group of employees

Alpha testing

Identify the steps taken by firms that have products in the decline stage of the product life cycle.

Completely exit market, Create a niche segment.

During the decline stage of the product life cycle, the few laggards who have not yet tried the product will be entering the market for the first time.

Decline

The process by which the use of an innovation, whether it be a product or service, is spread throughout a market group over time and over various categories of adopters, is know as:

Diffusion of innovation

When products reach the growth stage of the product life cycle, the market manager must study the customers and known their preferences in factors such as:

Features & Styles

Usually, during the ___ stage of the product life cycle, the typical consumers would be early adopters, and there would be increases in the number of competitors.

Growth

Life Cycle Order:

Introduction, Growth, Maturity, Decline.

During the ___ stage of the product life cycle, the market for the product usually becomes saturated.

Maturity

During the __________ stage of the product life cycle, industry sales reach the peak, so firms try to rejuvenate their products by adding new features or repositioning them

Maturity

An __ test is when a company shows potential customers the marketing mix variable and then are surveyed if they would buy or use the product again

Premarket

A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the:

Product life cycle

When Subway introduced a new Southwestern Club sandwich in South Florida before launching it nationwide, it was engaging in ___

Test marketing

Which of the following are disadvantages of test marketing in comparison to premarket tests?

Test marketing takes longer to carry out. Test marketing costs more.

True or False: If market testing returns with positive results, the firm is then ready to introduce the product to the entire market, which is called a product launch.

True.

Concept testing can be as simple as a brief written description of the product that might also include:

Visual images and customer needs it satisfies.