MKT 350 07 GVSU

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 results

Laggards make up roughly ______ of the market.

16%

The early majority represents approximately ______ of the total consumer market and is crucial to the profitability of a product or service. Without them, the product or service will typically fail.

34%

Which of the following processes could be considered an acceptable method for generating ideas? (Choose every correct answer.)

Communicating with a firm's R&D department Brainstorming within the firm Researching competitors' products and services Conducting consumer research

Without innovation, what options would be available to firms? (Choose every correct answer.)

Continue to market current products to current customers Take current products to new markets

What might a concept include along with a brief written description of the product?

Customer needs it satisfies Visual images

True or False: New products must be targeted toward end consumers.

False

_______generation refers to the first stage in the process by which firms develop a new product.

Idea

__________is the process by which ideas are transformed into new products and services that will help firms grow.

Innovation

_________are buyers of a product or service who are the first ones to adopt it.

Innovators

Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product?

It is new and innovative.

______ are consumers who like to avoid changes and rely on traditional products until they are no longer available.

Laggards

Product development or product design entails a process of balancing which types of considerations? (

Marketing Engineering Manufacturing

______ defines the stages products move through as they enter, get established in, and ultimately leave the marketplace.

The product life cycle

What objectives do firms have in adding new products, services, and processes to their offerings? (Choose every correct answer.)

To satisfy the changing needs of consumers To keep customers from getting bored with existing products

Early ______ are the category of consumers who begin to use a product or service immediately following innovators. (Remember to type only one word in each blank.)

adopters

New products and services that consumers accept quickly will have a high ______ rate early in their product life cycles, which will accelerate the diffusion process across the various stages.

adoption

The Apple iPod was readily accepted by consumers in part because it was an easy way to listen to music anywhere, with substantial improvements over portable CD players. This is an example of a relative _________ within the diffusion process.

advantage

Firms need to continue to innovate because customer needs ______.

are constantly changing

A ________ is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.

concept

__________of innovation is the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters.

diffusion

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 known as ______.

diffusion of innovation

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk ______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

diversification

When a company adds new products this helps the company to ______ its risk.

diversify

Along the diffusion of innovation curve, _______ make up the second group of consumers to adopt an innovation; they tend to be leaders in a social setting.

early adopters

Although there are numerous stages in the product development process, every firm starts to develop new products through ______ and then finishes with an evaluation of ______.

idea generation; results

A company that develops a new merchandise tracking technology that automatically notifies suppliers when a new shipment is needed is using its new product to ______.

improve business relationships

While the ______ is first to adopt the item, the ______ adopts next.

innovator; early adopter

The ______ stage of the product life cycle is characterized by initial losses to the firm due to its high start-up costs and low levels of sales revenue as the product begins to take off.

intro

The _____ stage of the life cycle for a new product or service category usually starts with a single firm, and innovators are the ones to try the new offering.

introductory

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

life

The early ___________ represents the earlier half of the two largest categories of consumers on the diffusion of innovation curve.

majority

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

maturity

The _______stage of the product life cycle is characterized by the adoption of the product by the late majority and good profitability. (Remember to type only one word in the blank.

maturity

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

test marketing

When a product is first launched during the introduction stage, sales are usually ______ and there are ______ competitors.

very low; essentially no

The problem with using the product life cycle concept is that no one can predict the shape that the product's life cycle will take; therefore, it is impossible to know ______.

which stage the product is in

Product development entails a variety of processes and considerations to determine which aspects of a product or service?

Form and features

True or False: Managers can use the product life cycle model to help predict what pricing, product, promotional, and placement strategies they should employ at each of the four stages.

True

Which of the following factors influence how rapidly a product will move through the product life cycle?

How different the product is from other offerings in the market How valuable the product is to the consumer

Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior?

Test marketing