The University of Oklahoma

MKT 3013

Ch. 9

1)What are the two ways that a company can obtain new products?

2. Product improvements, product modifications, and original products can all be classified as  .

3. Which of the following is NOT a potential reason for a new product to fail?

4. Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

5. The creation of a successful new product depends on a company's understanding of its         and its ability to deliver                 to customers.

6. New product development starts with        .

7. Executives, manufacturing employees, and salespeople are all examples of .

8. Your company decides to use internal sources for developing new product ideas. Which of the following would NOT be consulted?

9. Which of the following is perhaps the most important external source of new-product ideas?

10. Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas?

11. Your firm asks you to consult external sources for new product ideas. All of the following are common external sources EXCEPT .

12. The purpose of idea generation is to create a       number of ideas. The purpose of succeeding stages is to

                   that number.

13. 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.

14. 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?

15. A detailed version of a new idea stated in meaningful customer terms is called a      .

16. A                   is the way consumers perceive an actual or potential product.

17. An attractive idea must be developed into a       .

18.                    calls for testing new-product concepts with groups of target consumers.

19. In the concept testing stage of new-product development, a product concept in     form is presented to groups of target consumers.

20. With what groups do firms conduct concept testing for new products?

21. For some                , a simple description consisting of a word or picture might be sufficient.

22. After concept testing, a firm would engage in which stage in developing and marketing a new product?

23. The first part of the marketing strategy statement describes the target market; the planned product positioning; and goals for sales, profits, and       .

24. The second part of the marketing strategy statement outlines the product's planned price, distribution, and

                   for the first year.

25. The third part of the marketing strategy statement includes all of the following EXCEPT .  

26. 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     .

27. 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?

28. 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.

29. 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?

30. Once the product or service passes the business analysis test, it moves into what stage?

31. 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.

32. Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is   .

33. 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?

34. Under what circumstances might it be wise for a company to do little or no test marketing?

35. Although test marketing costs can be high, they are often small when compared with           .

36. Many marketers are now using new interactive technologies, such as Frito-Lay's online virtual convenience store, to reduce the cost of            .

37. The major purpose of test marketing is to provide management with the information needed to make a final decision about      .

38. Introducing a new product into the market is called       .

39. Which of the following costs is most likely associated with the commercialization stage of new-product development?

40. A company getting ready to launch a new product must make several decisions. The company must first decide on    .

41. Following the decision to "time" the introduction of the new product, a company must decide         to launch the new product.

42. Which of the following is necessary for successful new-product development?

43. Which stage of the new-product development process focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?

44.                    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.

45. In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called            .

46. The team-based new-product development approach is faster because departments work closely together through

                  .

47. 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?

48. Which of the following is a disadvantage of a team-based approach to new-product development?
49. The innovation management system approach yields two favorable outcomes: it helps create an innovation- oriented company culture, and it    .

50. The search for new-product ideas should be       rather than haphazard.
51.                    is the product life cycle period when sales fall off and profits drop.

52. Increasing profits will most likely occur at which stage of the PLC?

53. Which stage in the PLC is characterized by rapid market acceptance and increasing sales?

54. Some products that have entered the decline stage have been cycled back to the growth stage through     .

55. All of the following are stages in the PLC EXCEPT              .

56. Which stage of the typical consumer product life cycle is out of order below?

57. Which of the following CANNOT be described using the PLC concept?

58. All of the following are accurate descriptions of a style product, EXCEPT which one?
59. The PLC concept can be applied by marketers as a useful framework for describing how      .

60. 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.

61. In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

62. In the                 stage, the firm faces a trade-off between high market share and high current profit.
63. In which stage of the PLC will promotional expenditures be high in an attempt to respond to increasing competition?

64. Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?

65. Which of the following would lead to greater competition in the maturity stage of the PLC?

66. Most products in the marketplace are in the       stage of the product life cycle.

67. When a product enters the maturity stage, the company should consider   .
68. Sales decline in the decline stage of the PLC because of technological advances, increased competition, and

                  .

69. Which of the following best represents the options a company has when a product is declining?
70. 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.

71. Manufacturers must comply with specific laws regarding       .

72. Because of                , a company cannot make its product illegally similar to a competitor's already established product.

73. Which of the following best describes the role of a product steward?

74. The advantages of standardizing an international product include all of the following EXCEPT  .

75. Because names, labels, and colors may not easily translate from one country to another, international marketers must carefully assess              .

76. 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?
77. Which of the following is the most likely reason that employees at your firm regularly attend trade shows and seminars?

78. Which of the following statements best explains why idea screening may be the most import step of new product development?

79. 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             .

80. Which of the following is a product concept?

81. 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          .

82. 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       .

83. 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  .

84. 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?

85. 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.

86. Sherri's Exclusives sells currently accepted and popular clothing items in given fields. What does she stock in her store?

87. Flurrbies, a winter accessory which fell in and out of favorability with customers quickly, are an example of a

                  .

88. 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      .

89. 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.

90. Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the

                   stage of the PLC.

91. 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.

92. When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was        .

93. 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?

94. 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?

95. 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.

96. 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.

97. 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?

Refer to the scenario below to answer the following questions.

Most people laughed when Evelyn Ringler explained her product idea: a solar-powered vacuum cleaner. But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys. After setting up a demonstration booth in a mall in a Chicago suburb, Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice, such as how much they would pay for the vacuum, what colors they would prefer, and why they would not buy the vacuum.

The vacuum itself was dome-shaped, something like a small saucer, with a filter bag on top and sensory nodes along the edges. After being charged in the sunlight, the vacuum could run for 10 hours, covering a floor area of 600 square feet. As the apparatus lightly bumped into table legs, chairs, and so on, the sensory nodes allowed the vacuum to move around the objects in various directions. This is the same type of technology used in the manufacture of children's race cars and walking dolls.

Evelyn knew that the solar-powered vacuum would be especially helpful to both elderly consumers, who may have a more difficult time with vacuuming, and on-the-go consumers who lead busy lives. The price would be above average but would likely reduce after Evelyn recouped some of her costs.

After a 500-unit production run and a substantial financial investment, Evelyn Ringler set up a multiple-city test

market, in a Chicago mall and in an appliance store in New Jersey. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away."

98. 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.

99. When Evelyn set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner, she was doing which of the following?

100. Evelyn's vacuum is at the              stage of the product life cycle.

101. A firm can obtain new products in two ways: acquisition or new-product development.

102. Up to 90 percent of all new consumer products fail.

103. New product development begins with a systematic search for new product ideas through idea generation.

104. 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.

105. Companies rarely solicit ideas from customers during the idea generation stage of product development.

106. 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.

107. 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.

108. 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.

109. 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.

110. 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.

111. The business analysis stage represents the first large jump in financial investment in the new-product development process.

112. The stage at which new product and marketing programs are introduced into realistic market settings is called concept testing.

113. A company launching a new product into the market must first decide on when to launch the product.