MKTG 300 Chap 11
Screening
To rate concept (or product) alternatives, concept test are often used at the ______________stage.
Business analysis stage
Felicita Brewery wants to add brown ale beer to its existing list of alcoholic products. The questions the company currently is asking itself are: What is likely demand for the product? What impact would the new product probably have on total sales, profits, market share and return on investment? How would the introduction of the product affect existing products? At what stage of new-product development process is this company?
Products that create new consumption patterns
For which type of products are concept test thought to be less effective in prediction the success of a product?
new product lines
Samsung is best known for its smartphones, tablets, and televisions. Years ago when it decided to expand its business activities and operations into ship building and military hardware, it was gearing to offer_________________.
They do not test market line extensions of well known brands to save cost.
Test marketing is very expensive. As a result, which of the following is true of some companies?
as long as that of the product form.
The PLC for a brand that was the first and last competitor in a product form market is_________________.
shorten the development process and incur decreased costs.
The approach taken in the process of simultaneous product development leads a company to ________.
Decline stage
The beginning of which stage of the product life cycle is signaled by a long-run drop in a product's sales?
Niche marketers that target the underserved segments of a market emerge.
Which statement is true of the maturity stage of the product life cycle(PLC)?
product line extension
A furniture manufacturer with a reputation for making plain, lightweight foldable steel chairs decides to make cushioned chairs with printed upholstery. The new type of chair will be a _____________.
repositioned products
A company well-known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market. The company changed its campaign to focus on dietary needs rather than just convenience, thus targeting a segment of consumers looking for healthy diet. This is an example of a _____________.
Product development
A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products is called_________.
The mobile simply wouldn't offer any discernible benefit compared t existing products
A mobile telephone manufacturer markets a limited-edition cell phone model with 126 different functions. The campaign failed across all 50 states in the United States. Which of the following is the most likely reason?
Introductory stage
A new range of organic confectionary was introduced by Bounty Foods. The company is forced to give its dealer high margins and also needs to invest heavily in advertising. Their production costs are also high. In which PLC stage is the company most likely to be?
The product's distributor
A source suggested to Rubbermaid the idea of the Sidekick, a litter-free lunch box. Rubbermaid could place some of its plastic containers inside a lunch box and sell the box as an alternative to plastic wrap and paper bags. The source saw this opportunity because of being closer to the consumers than the manufacturer was and, thus, more aware of customer needs. Which of the following was likely the source?
simulated (laboratory)market testing
Advertising and other promotional materials for a variety of products, including the test product, are shown to members of the product's target market. These people are then taken to shop at a mock or real store, where their purchases are recorded. This is art of the process involved in ____________.
Commercialization
At which stage in the new-product development process is the decision to market a product made?
Beginning of the maturity stage
Atwood Furnishers is experiencing a period when their sales are increasing at a slower rate. The company realizes that new users cannot be added indefinitely and that, sooner or later, its market will approach saturation. Which stage is the company now entering?
It exposes the new product and its marketing mix to competitors before its introduction Thus, the element of surprise is lost
Besides its high cost, what is the other possible problem that test marketing is likely to face?
simulated market testing
Cleanz Inc., a toiletries manufacturing firm, has launched a new range of organic sanitizing wipes. It wants to test its consumers' reactions to this new product in an economical way. Therefore, Cleanz creates flyers that advertise several of its products along with the new product and send them to a few selected members to a mock shop and monitors their shopping behavior. In this scenario, Cleanz is using _________.
A new line of trousers.
Comparably speaking, which of the following would have the highest observability in terms of its rate of acceptance and diffusion?
are more likely to be opinion leaders.
Compared to innovators, early adopters________________.
Discontinuous innovations
Hakimo Corp., a manufacturer of audio equipment, has developed a unique wireless speaker system that runs on solar power. The speakers can operate for 16 hours after being exposed to the sun for 2 hours. This product, which is radically different from anything available in the market, falls into which category of new products?
make a slight change in the design or function of the existing products.
Hamdi Corp. manufactures and sells accessories for cell phones. To boost its sales, the research and development team decides to use product modification as an approach to new product development. In this scenario, the research and development team will most likely:
Neither relies on group norms
Identify a similarity between laggards and innovators.
They are likely to collect more information and evaluate more brands.
In comparison to early adopters, which of the following statements is true of the early majority?
does not reflect market conditions in the new product's projected market area.
In test marketing, the greatest danger is in choosing a test-site city that _____________.
tradition
In the context of diffusion of innovation, the dominant value of laggards is ________.
A. it helps marketers forecast future events and suggest appropriate strategies.
In which way does the concept of product life cycle (PLC) help marketing managers?
Commercialization
Ines, the owner of an ice cream parlor, has been experimenting with different flavors to create a new exotic ice cream for her customers. After much deliberation and many test, she decides to market the new Beet Cake with Black Walnut variant. In this scenario, the chosen ice cream flavor has entered the _________ stage of the new-product development process.
They have higher incomes and are more self-confident.
Innovators are eager to try new ideas and products, almost as an obsession. Which of the following is true of them?
Eliminate all nonessential marketing expenses and let sales decline.
NutriOats, an oatmeal cookie product, has been in the market for more than seven years and is now in its decline stage. In this case, which of the following strategies would be successful in marketing NutriOats?
shift to aggressive brand advertising and open new branches of its stores.
Magnira Corp. is an apparel company. After a slow start, it saw a steep rise in the number of its customers and a remarkable increase in its profits. However, with the launch of competing apparel manufactures in the market, the profits of Magnira have started declining. To sustain its growth in the market, the managers of Magnira should
high dealer margins are often needed to obtain adequate distribution.
Making cost are high in the introductory stage of the product life cycle because
a discontinuous innovation
Nozzle is a specially designed product that retro fits into your existing water faucet and atomizes the water stream in a spray that lets you use 98% less water when washing produce or dishes. Some consider this a game changer for environmental protection, especially in regions of water scarcity. This product would be categorized as:
innovators
Sergio, an affluent college graduate, buys gadgets on the day of their launch in the market. He reads expert reviews on the Internet and is not influenced by the opinions of his family and friends while choosing products Sergio is most likely to belong to the category of ______ in the context of diffusion innovation.
business analysis
Steve, a retiree, wants to use his savings to open a day care facility for dogs. After deciding on the services that he would provide to his customers, he calculates cost versus the demand and the profit he could make depending on the volume of sales. After extensive deliberation, Steve decides to take a bank loan because the needed initial investment is too high for opening the facility Steve is currently in the __________stage of the new product development process.
late majority
Steven, a construction worker, tends to buy a new gadget if most of his friends have them and only after they've teased him about not having the gadget yet. He relies on reviews from his friends rather than on television or newspaper advertisements to make his purchase decisions. It can be inferred that when it comes to the diffusion of innovation, Steven belongs to the group of ________________.
Commercialization
The final stage in the new-product development process is ______________.
postpone objective evaluation and focus on the sheer quantity of ideas generated.
The objective of brainstorming is to__________________.
They speed up the diffusion process through word-of-mouth communication.
Which statement is true of opinion leaders?
laggards
Vicente bought his first color television set after flat screen televisions were already widely diffused. He is most likely to be one among the ______________.
They eliminate the fear of coming up with bad ideas by rewarding failure.
What do programs like Google X do to promote innovative thinking among its employees?
Yes, if media advertising reaches a very large area outside that market, it may pull in many consumers from outside the market being tested and thus the product may then appear more successful than it really is.
When advertising a test product, should test locations in particular markets be isolated from media with a far reach, such as television?
difficulty to understand and use the new product.
When considering a product's characteristics and the rate of adoption, complexity refers to the degree to which a new product is______________.
Laggards
When considering the diffusion of innovation, which group is least motivated by advertising or personal selling?
It eliminates ideas that are inconsistent with an organizations new-product strategy.
When considering the new-product development process, which of the following statements is true of screening?
It must be compatible with the objectives of the marketing department, the business unit, and the corporation.
When developing a new product, which is true of a new-product development strategy?
perceived as superior to existing substitutes
When predicting or explaining a new rate of adoption and diffusion of a new product, relative advantage refers to the degree to which that product is ______.
Trialability
When prediction or explaining the rate of acceptance and diffusion of a new product, the degree to which it can be sampled on a limited basis is its __________________.
They can move through the entire cycle in weeks.
Which is a characteristic of fads?
They rely on the group of information but are unlikely to be opinion leaders themselves.
Which is a key characteristic of those in the early majority who purchase a new product?
It does not tell managers the length of a product's life cycle or its duration in any stage.
Which is a limitation of the PLC concept?
They are distinguished not by demographics buy by behavior.
Which is true of the influencers found among early adopters?
They have the longest adoption time and the lowest socioeconomic status.
Which of the following describes laggards?
They adopt a new product because most of their friends have already adopted it.
Which of the following describes the late majority?
Products are developed for global distribution and then tweaked to meet unique market requirements whenever possible..
Which of the following is a characteristic of products produced by multinational corporations?
Both depend on word of mouth communication.
Which of the following is a characteristic shared by both early majority and the late majority?
It exposes the new product and its marketing mix to its competitors before its introduction.
Which of the following is a disadvantage of test marketing?
To discuss ideas while avoiding criticism of them.
Which of the following is a goal of brainstorming?