Marketing Chapter 11

In the new-product development process, which of the following statements is true of the development stage?

The marketing department should decide on the product's packaging, branding, labeling, and so forth.

Which of the following statements is true of laggards?

Their independence is rooted in their ties to tradition.

The research and development (R&D) team of DataCom Corp., a software firm, holds a meeting to discuss potential ideas for new products. In the meeting, the moderator encourages everyone to share their ideas, no matter how trivial they may seem. He warns members against criticizing any idea and asks them to focus on offering plenty of ideas. In this scenario, the R&D team of DataCom is engaged in _____.

brainstorming

Vilante Corp., a television manufacturing firm, observes that its profits are declining because of slow sales. Therefore, it begins to promote the product to its consumers and dealers to maintain its market share. To distinguish its products from its competitors, it redesigns its television models stylistically. It also increases the product warranty from one year to three years. In this scenario, Vilante's products are in the _____ stage of the product life cycle.

maturity

Normally, the longest stage of the product life cycle is the _____.

maturity stage

One of the reasons for new-product failures is that the products

offer no discernible benefits compared to existing products.

The _____ is a biological metaphor that traces the stages of a product's acceptance, from its introduction to its decline.

product life cycle

Which of the following is true of simultaneous product development?

All relevant functional areas participate in all stages of the development process.

_____ is the degree to which a new product is consistent with existing values and product knowledge, past experiences, and current needs.

Compatibility

_____ is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

test marketing

For a long time, baking soda was used only as a cooking ingredient. Recently, Nails & Hammer Co., a construction firm, began marketing baking soda as an odor absorbent. The company promoted its use in absorbing odors in homes. In this scenario, which of the following categories of new products does baking soda belong to?

Repositioned products

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

For the first time, costs and revenues are estimated and compared.

In a product development process, which of the following is a disadvantage of test marketing?

It exposes the new product and its marketing mix to competitors before its introduction.

How does the product life cycle concept help marketing managers?

It helps marketers forecast future events and suggest appropriate strategies

Which of the following statements is true of absolute failure?

It occurs when a company fails to recoup its development, marketing, and production costs.

Which of the following statements is true of commercialization?

It refers to the decision to market a product.

In the context of adopters who participate in diffusion, which of the following individuals is most likely to be a part of the early majority?

Stephen, who always purchases a product after conducting an in-depth research on its pros and cons

Which of the following is a characteristic of early adopters?

They are more oriented to the local community.

In the context of adopters who participate in diffusion, which of the following statements is true of innovators?

They are worldly and active outside their community than other categories.

From a worldwide perspective, which of the following statements is true of global marketers?

They design their products to meet regulations in their major markets.

In the context of new-product development, which of the following is a global strategy adopted by many multinational corporations?

They develop every product for potential worldwide distribution.

The rate of acceptance and diffusion of a new product will be faster when the

benefits of using the product can be observed by others

The decision to commercialize a product involves _____.

building inventories

Italiano, an American restaurant, experienced increased sales and high profits in the initial years of its establishment. Recently, it began to face increased competition. To rebuild its brand value, Italiano started expanding its distribution network and aggressively promoting its restaurant. In this scenario, Italiano is in the _____ stage of the product life cycle.

growth

Addiso, an energy drink, was extremely popular in the early 2000s. It suffered a decline in its sales because of rising competition in the market. As a result, the manufacturers modified the product's packaging from its regular cylindrical bottle to an interesting triangular-shaped package. This led to an increase in sales. In this scenario, the modified product belongs to the category of

improvements or revisions of existing products.