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120 Cards in this Set
- Front
- Back
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What are the two ways that a company can obtain new products?
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New product development and acquisition
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Product improvements, product modifications, and original products can all be classified as ________.
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New products
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Which of the following is NOT a potential reason for a new product to fail?
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an underestimated market size
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Which of the following is NOT a challenge presented by the product life cycle that a firm must face?
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It is difficult to plot the stages as the product goes through them
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The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers.
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customers, competitors, and markets; superior value
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New product development starts with ________.
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idea generation
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Executives, manufacturing employees, and salespeople are all examples of ________.
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internal sources for new product-ideas
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Your company decides to use internal sources for developing new product ideas. Which of the following would NOT be consulted?
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Suppliers
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Which of the following is perhaps the most important external source of new-product ideas?
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Customers
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Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas?
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relying heavily on customers to know what types of technical products they need
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Your firm asks you to consult external sources for new product ideas. All of the following are common external sources EXCEPT ________.
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the firm's executives
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The purpose of idea generation is to create a ________ number of ideas. The purpose of succeeding stages is to ________ that number.
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large number; reduce
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GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________, to arrive at a realistic number to adopt.
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idea screening
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Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee?
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the proposed customer value proposition
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A detailed version of a new idea stated in meaningful customer terms is called a ________.
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product concept
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A ________ is the way consumers perceive an actual or potential product.
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product image
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An attractive idea must be developed into a ________.
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product concept
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________ calls for testing new-product concepts with groups of target consumers.
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Concept Testing
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In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers.
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physical or symbolic
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With what groups do firms conduct concept testing for new products?
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target customers
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For some ________, a simple description consisting of a word or picture might be sufficient.
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concept tests
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After concept testing, a firm would engage in which stage in developing and marketing a new product?
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marketing strategy develpment
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The first part of the marketing strategy statement describes the target market; the planned product positioning; and goals for sales, profits, and ________.
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market share
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The second part of the marketing strategy statement outlines the product's planned price, distribution, and ________ for the first year.
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marketing budget
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The third part of the marketing strategy statement includes all of the following EXCEPT ________.
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short run sales
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A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.
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business analysis
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During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?
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business analysis
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Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process.
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business analysis
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New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released. Sales must be estimated before costs can be estimated. Which of the following did your text recommend for forecasting sales?
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considering the sales history of similar products and conducting surveys of market opinions
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Once the product or service passes the business analysis test, it moves into what stage?
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product development
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In the ________ stage of new-product development, products undergo rigorous tests to make sure that they perform safely and effectively or that consumers will find value in them.
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product development
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Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.
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test marketing
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Bonneville Communications is concerned about test marketing its new device. Which of the following is NOT a disadvantage of test marketing that would likely concern Bonneville Communications?
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People who are surveyed tend to tell less than the truth
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Under what circumstances might it be wise for a company to do little or no test marketing?
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when the costs of developing and introducing the product are low
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Although test marketing costs can be high, they are often small when compared with ________.
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the costs of a major mistake
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Many marketers are now using new interactive technologies, such as Frito-Lay's online virtual convenience store, to reduce the cost of ________.
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test marketing
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The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.
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whether to launch the new product
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Introducing a new product into the market is called ________.
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commercialization
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Which of the following costs is most likely associated with the commercialization stage of new-product development?
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building or renting a manufacturing facility
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A company getting ready to launch a new product must make several decisions. The company must first decide on ________.
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when to time the new product introduction
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Following the decision to "time" the introduction of the new product, a company must decide ________ to launch the new product.
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where
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Which of the following is necessary for successful new-product development?
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a customer-centered, team-based, systematic approach
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Which stage of the new-product development process focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?
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customer-centered new-product development
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________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
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Sequential product development
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In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called ________.
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team-based new-product development
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The team-based new-product development approach is faster because departments work closely together through ________.
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cross-functional teams
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The team-based new-product development approach uses cross-functional teams that overlap the steps in the process to achieve which of the following goals?
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save time and increase effectiveness
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Which of the following is a disadvantage of a team-based approach to new-product development?
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Organizational confusion and tension can affect the process.
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The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.
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yields a larger number of new-product ideas
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The search for new-product ideas should be ________ rather than haphazard.
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systematic
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________ is the product life cycle period when sales fall off and profits drop.
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Development
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Increasing profits will most likely occur at which stage of the PLC?
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growth
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Which stage in the PLC is characterized by rapid market acceptance and increasing sales?
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growth
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Some products that have entered the decline stage have been cycled back to the growth stage through ________.
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promotion or repositioning
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All of the following are stages in the PLC EXCEPT ________.
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adoption
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Which stage of the typical consumer product life cycle is out of order below?
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maturity
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Which of the following CANNOT be described using the PLC concept?
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product image
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All of the following are accurate descriptions of a style product, EXCEPT which one?
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Styles last only a short time and tend to attract only a limited following.
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The PLC concept can be applied by marketers as a useful framework for describing how ________.
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products and markets work
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Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n) ________ of the product's life cycle.
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cause; result
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In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?
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introduction
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In the ________ stage, the firm faces a trade-off between high market share and high current profit.
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growth
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In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?
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growth
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Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?
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MATURITY
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Which of the following would lead to greater competition in the maturity stage of the PLC?
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overcapacity
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Most products in the marketplace are in the ________ stage of the product life cycle.
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maturity
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When a product enters the maturity stage, the company should consider ________.
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modifying the product, market, or marketing mix
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Sales decline in the decline stage of the PLC because of technological advances, increased competition, and ________.
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shifts in consumer tastes and preferences
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Which of the following best represents the options a company has when a product is declining?
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maintain, harvest, or drop the product
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A manufacturer with a product in the decline stage of the product life cycle might decide to ________ if it has reason to hope that competitors will leave the industry.
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maintain the product without change
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Your firm added three new products earlier this year to increase variety for customers. Two of them failed to reach even minimal sales. Which of the following is LEAST likely to have been the cause of their failure?
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Research was too extensive
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Which of the following is the most likely reason that employees at your firm regularly attend trade shows and seminars?
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to get new-product ideas
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Which of the following statements best explains why idea screening may be the most import step of new product development?
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It saves the company money in product development costs by giving the green light to only the product ideas that are likely to be profitable
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JoAnn Fabrics, Inc., has just created a new combination of colors and fabric types. The firm wants to be sure of the way consumers perceive its new product. The firm is concerned with the product ________.
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image
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Which of the following is a product concept?
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a thin, lightweight laptop with extended battery life appealing to students and young professionals who want access to their computer anywhere, anytime
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Wainwright Industries will build a new prototype riding lawnmower especially for women. In the product development stage, Joe Wainwright and his staff will incorporate the functional features and convey the ________.
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intended psychological characteristics
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Skippy Peanut Butter has a new peanut butter and bacon product and finds a small number of representative test cities. They plan to use the results to forecast national sales and profits. Skippy is using ________.
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standard test markets
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Anita's DayCare plans to offer third-shift childcare, based upon the opening of two new manufacturing plants in her area. Together the plants will hire 423 employees and run all three shifts. Initial test marketing results look promising. In considering launching this new service, Anita must first decide on ________.
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timing
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Atlas Steel Corporation lacks the confidence, capital, and capacity to launch its new steel product into full national or international distribution. Even though test market results look promising, what will be management's next step?
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develop a planned market rollout over time
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At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in a cross-functional group to save time and money in the new-product development process. Fantastic Flavors uses a(n) ________ approach.
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team-based new-product development
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Sherri's Exclusives sells currently accepted and popular clothing items in given fields. What does she stock in her store?
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fashions
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Flurrbies, a winter accessory which fell in and out of favorability with customers quickly, are an example of a ________.
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fad
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Big Moose Toys is a market pioneer introducing a modern version of Bullwinkle the Moose, a character from an animated television series originally broadcast in the 50s and 60s. Their version of Rocky the Flying Squirrel, another character from the show, targeted to baby boomers was a strong success. They need to make the new launch strategy for Bullwinkle consistent with the intended ________.
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product positioning
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Apple's iPod has been called "one of the greatest consumer electronics hits of all time." More than 120 million iPods have been sold, and the iPod captures more than 70 percent of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.
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maturity
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Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the ________ stage of the PLC.
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maturity
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Over the past 100 years or so, Binney and Smith's Crayola crayons have become a household staple in more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.
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maturity
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When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was ________.
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modifying the product
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It's What's Hip, a chain of 18 music and CD stores, has discovered that carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?
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few concerns about company image and other products
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Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC. Which of the following should NOT be done in the identification process?
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regularly reviewing management's pet projects
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Proctor & Gamble has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to ________ the products.
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drop
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When Kraft focused on cost-cutting with its older and established brands, leaving them to wither without much investment or modification, Kraft had decided to ________ the older products.
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harvest
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CellTones, a new company selling several lines of cellular phones, has closely modeled its products after successful products that are already in the marketplace. As it prepares to enter the market with its new products and services, which of the following should concern CellTones the most?
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patent laws
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Evelyn's ________ is the practical use of solar power in a vacuum cleaner that is designed to effortlessly sweep the floors of on-the-go and elderly consumers.
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product concept
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When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner, she was doing which of the following?
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concept testing
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Evelyn's vacuum is at the ________ stage of the product life cycle.
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product development
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A firm can obtain new products in two ways: acquisition or new-product development. T or F?
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True
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Up to 90 percent of all new consumer products fail.
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True
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New product development begins with a systematic search for new product ideas through idea generation.
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True
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Malibu Beach Parties finds that the tastes and preferences of its customers change more rapidly than in the past. The manager should constantly look for external ideas from customers, suppliers, and the competition.
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True
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Companies rarely solicit ideas from customers during the idea generation stage of product development.
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False
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Blair Housewares wants to add new lines of products to its 46-store chain. Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.
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False
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A product idea is an idea for a possible product a company can offer the market, while a product concept is a detailed version of the idea stated in meaningful consumer terms.
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True
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Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development.
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False
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GreenTree Lawn and Garden Products is engaged in marketing strategy development. Management should first create a statement outlining the product's planned price, distribution, and marketing budget for the first year.
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False
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GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.
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False
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The business analysis stage represents the first large jump in financial investment in the new-product development process.
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False
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The stage at which new product and marketing programs are introduced into realistic market settings is called concept testing.
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False
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A company launching a new product into the market must first decide on when to launch the product.
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True
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JumBo Games is launching a new set of game toys in the commercialization stage. The first decision to make is introduction timing and the second is where to launch the new product.
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True
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Sequential product development has the advantage of not only being a team-oriented approach, but it is also faster in bringing products to market.
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False
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To avoid too few new product ideas and the failure of many good ideas, management should install an innovation management system that collects, reviews, evaluates, and manages new-product ideas.
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True
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Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.
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True
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Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume and unit manufacturing costs fall.
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True
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Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.
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True
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When sales of a product falter during the PLC, a company can take several approaches. The more common ones are to modify the marketing mix, modify the product, or modify the market.
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True
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Sales for the time-tried household cleansers made by Brite and New, Inc., have been declining for some time. If these products are typical, sales are declining because of technological advances, shifts in consumer tastes, and lack of raw materials from foreign suppliers.
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False
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Companies need to pay attention to their aging products. Management should regularly review sales, market shares, costs, and profit trends, and then decide whether to maintain, harvest, or drop these declining products.
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True
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When a company decides to maintain a product in the decline stage, it will reduce costs and hope that sales hold up to increase the profits in the short run.
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False
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The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.
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True
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The international growth of many professional and business services such as accounting, consulting, and advertising led to the globalization of the client companies they serve.
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False
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