Principles of Marketing: Ch. 8

During the introductory stage of the product lifecycle, _____. A. sales are slow and profits nonexistent B. sales rise quickly and profits are high C. sales rise​ quickly, but profits are nonexistent D. profits rise quickly and there is rapid market acceptance of the product E. sales fall and profits decline

A. Sales are slow and profits nonexistent

What options are available to a firm that has a product in the decline stage of the product life cycle. Briefly discuss each option.

A company may decide to maintain, harvest, or drop the product. In maintaining the brand, the company may reposition or reinvigorate the product in hopes of bringing it back to its growth stage. In harvesting the brand, the company may reduce various costs in hopes that the sales hold up and the company is able to achieve at least short-run profit. Finally, the company may choose to drop the product line altogether and sell to another firm or liquidate its salvage value.

What options are available to a firm that has a product in the decline stage of the product life​ cycle? Briefly discuss each option.

A company may decide to maintain, harvest, or drop the product. In maintaining the brand, the company may reposition or reinvigorate the product in hopes of bringing it back to its growth stage. In harvesting the brand, the company may reduce various costs in hopes that the sales hold up and the company is able to achieve at least short-run profit. Finally, the company may choose to drop the product line altogether and sell to another firm or liquidate its salvage value.

To create successful new products, a company must ____. A. understand its​ consumers, markets, and​ competitors, and develop products that deliver superior value B. avoid innovation and only improve​ existing, successful products C. cut costs to keep the price of new products low D. spend more on​ R&D than its competitors E. wait and see what new products its competitors offer

A. understand its consumers, markets, and competitors, and develop products that deliver superior value

Which of the following statements regarding the marketing of international products and services is correct? A. Markets and consumers all over the world are​ alike, so a company should always standardize international products. B. Because markets and consumers around the world differ​ widely, companies must usually adapt their product offerings in different world markets. C. Advertising is one service industry that has not needed to globalize its operations. D. The trend toward growth of global service companies will not continue and will actually decline. E. Markets and consumers around the world are now so similar that international product and services marketers no longer face special challenges when marketing in foreign countries.

B. Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets.

What is the first step in the new product development process? A. Screening new product ideas B. Consulting with​ R&D on the feasibility of the new product C. Generating new product ideas D. Setting the budget E. Building a prototype

C. Generating new product ideas

Which stage of the product lifecycle normally lasts longer than the previous stages and poses strong challenges to marketing​ management? A. Introduction B. Decline C. Maturity D. Growth E. Product development

C. Maturity

4. Once management has decided on its product concept and marketing​ strategy, it can evaluate the business attractiveness of the​ proposal, which involves​___________. (What is/are the key words here? What is definition of the answer?) A. introducing the new product to the market B. conducting concept testing C. conducting test marketing D. building and testing a prototype E. conducting a business analysis

E. Conducting a business analysis - BUSINESS attractiveness (not consumer attractiveness) - Business analysis: a review of a new product's sales, costs, and profit projections to assess whether it meets the company's objectives

Which of the following statements regarding socially responsible product decisions is​ correct? A. Manufacturers are not required to comply with laws regarding product quality and safety. B. Manufacturers are generally not concerned with product liability. C. Consumers who have been injured by a product with a defective design cannot sue manufacturers or dealers. D. When companies drop​ products, they do not have any legal obligations to​ suppliers, dealers, and customers. E. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

E. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition

What are two ways a firm can obtain new products? (what is/are the key word(s) in this question) A. Acquisitions and new product development B. New product development and external research and development C. Acquisitions and external research and development D. Mergers and acquisitions E. New product development and existing product modification

Key word? NEW A. Acquisitions and new product development

Briefly describe the steps in the new product development process

The new product development process includes idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, and commercialization. First a company must systematically search for new ideas (idea generation). Then, they must screen them to identify potentially good ideas and drop the bad as soon as possible (idea screening). Next, the idea must be formed into a concept, a detailed version stated in customer terms, and tested amongst a group of target customers to determine its appeal (concept development and testing). Next, the company must design a marketing strategy to introduce the product to the market (marketing strategy development). The company must then conduct a business analysis, a review of the product's sales, cost, and profit projections and determine whether it satisfies the company's objectives (business analysis). Next, the company must develop the product concept into a physical product to ensure that the product idea can be turned into a workable market offering (product development). After product development, the product and its proposed marketing strategy are test in a realistic market setting (test marketing). Finally, the product may be introduced into the market (commercialization).

Briefly explain each step in a typical product life cycle.

The product life cycle includes product development, introduction, growth, maturity, and decline. The company will first develop a product, during which sales are zero and the cost of investment mounts. tHe product will then be introduced to the market, during which sales are slow profits are nonexistent due the heavy costs of product introduction. The third stage is growth, a period of rapid market acceptance and increasing profits. Maturity is a period of slowdown in sales growth because the product has been accepted by most potential buyers. At this point, profits are steadying or declining as the product experiences increased competition. Decline is the period where sales fall off and profits drop.