Chapter 8 Principles of Marketing
In which of the following cases is crowdsourcing used for new product development?
A company creates a forum where anyone can contribute new product ideas.
Which of the following is true of the product life cycle (PLC)?
It is generally difficult to forecast the sales level at each PLC stage.
The third part of a marketing strategy statement describes the ________ of a new product.
sales, market share, and profit goals
Which of the following statements is most likely true about the new product development process?
Customers, competitors, distributors, and suppliers are major sources of new product ideas.
In a sequential new product development process, which of the following is true of the product development step?
Product development is usually followed by test marketing.
________ can describe a product class, a product form, or a brand.
The product life cycle concept
Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?
controlled test markets
Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a ________ approach in their new product development process.
customer-centered
During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years.
decline
Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a ________.
fad
In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.
growth
The new product development process usually starts with ________
idea generation
The new product development process usually starts with ________.
idea generation
Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line.
idea screening
Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the product life cycle.
maturity
Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
product stewards
Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________.
test marketing
If a product passes both the concept test and the product test, the next step is most likely to be ________.
test marketing
In which of the following cases is little or no test marketing most likely recommended for a new product?
when the costs of developing and introducing the product are low
