marketing chapter 9 final – Flashcards
Unlock all answers in this set
Unlock answersquestion
Which of the following is a significant challenge presented by the product life cycle?
answer
new-product development
question
Acquisition refers to ________.
answer
the buying of a whole company, a patent, or a license to produce someone else's product
question
Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.
answer
acquisition
question
Product improvements, product modifications, and original products can all be classified as ________.
answer
new products
question
Which of the following is a common reason for new product failure?
answer
incorrect estimation of the market size
question
A particular firm added three new products earlier this year to increase variety for customers. Two of the products failed to reach the minimal sales quota. Which of the following is LEAST likely to have been the cause of their failure?
answer
Product research was too extensive.
question
New-product development starts with ________.
answer
idea generation
question
John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new-product development process does this exemplify?
answer
idea generation
question
Which of the following is an internal source for new-product ideas?
answer
company executives
question
Many companies have developed ________ programs that encourage employees to develop new-product ideas.
answer
intrapreneurial
question
Why are customers often considered the most important sources of new-product ideas?
answer
The company can analyze customer questions and complaints to find new products that better solve consumer problems.
question
Which of the following is an external source for new-product ideas?
answer
suppliers
question
Which of the following is the most likely reason that employees regularly attend trade shows and seminars?
answer
to get new-product ideas
question
Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new-product innovation process?
answer
crowdsourcing
question
Which of the following statements is true of the idea generation stage in the new-product development process?
answer
Truly innovative companies develop extensive innovation networks that capture ideas and inspiration from every possible source.
question
In the new-product development process, the first idea-reducing stage is ________.
answer
idea screening
question
Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage.
answer
idea screening
question
Which of the following would most likely be included in an executive's write up of a new-product idea to be presented to a new-product committee?
answer
the proposed customer value proposition
question
A product idea is ________.
answer
a possible product that the company can see itself offering to the market
question
A detailed version of a new idea stated in meaningful customer terms is called a ________.
answer
product concept
question
An attractive product idea must be developed into a ________.
answer
product concept
question
A ________ is the way consumers perceive an actual or potential product.
answer
product image
question
JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.
answer
image
question
Which of the following statements best explains why idea screening may be the most important step of new-product development?
answer
It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable.
question
Which of the following statements is true of the new-product development process?
answer
Under the business analysis stage, if the new product satisfies the company's objectives, the product then moves to the product development stage.
question
Which of the following groups do marketers involve for the process of concept testing new products?
answer
target consumers
question
Which of the following stages in the new-product development would a firm engage itself in immediately after the completion of concept testing?
answer
marketing strategy development
question
What is included in the first part of a marketing strategy statement?
answer
target market description
question
Which of the following is included in the second part of the marketing strategy statement?
answer
customer segmentation
question
Which of the following is included in the third part of the marketing strategy statement?
answer
the planned long-run sales
question
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 ________.
answer
marketing strategy development
question
Which stage of new-product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?
answer
business analysis
question
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.
answer
business analysis
question
Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.
answer
consider the sales history of similar products
question
Which of the following stages of the new-product development process occurs immediately after the completion of the business analysis for the product or service?
answer
product development
question
In the ________ stage of the new-product development process, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.
answer
product development
question
A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a ________.
answer
prototype
question
Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.
answer
test marketing
question
P&G introduced Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. This illustrates ________.
answer
one of the problems associated with test marketing
question
Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?
answer
standard test markets
question
In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.
answer
controlled tets market
question
All of the following are disadvantages of test marketing EXCEPT that test marketing ________.
answer
encourages dishonesty among participants
question
Which of the following is the most likely circumstance for a company to decide to do little or no test marketing?
answer
when the costs of developing and introducing the product are low
question
Which of the following statements is true of test marketing?
answer
Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.
question
In a ________, new products and marketing tactics are tested online in a virtual shopping environment.
answer
simulated test market
question
The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.
answer
whether to launch the new product
question
Introducing a new product into the market is called ________.
answer
segmentation
question
P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new-product development process before P&G could.
answer
commercialization
question
Which of the following involves costs that most likely occur during the commercialization stage of new-product development?
answer
building or renting a manufacturing facility
question
A company getting ready to launch a new product must make several decisions. The company must first decide on ________.
answer
when to introduce the product
question
According to the commercialization stage of the new-product development process, following the decision to introduce the new product at a particular time, a company must next decide ________.
answer
where to launch the new product
question
Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.
answer
timing
question
Which of the following focuses on finding new ways to solve customer problems and create more customer-satisfying experiences?
answer
customer-centered new product development
question
Skyrim Corp. lacks the capital and capacity to launch its new helicopter for full national and international distribution. If the test market results look promising, what should be management's next step?
answer
develop a planned market rollout over time
question
________ 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.
answer
Sequential product development
question
Under a team-based new-product development approach, ________.
answer
company departments work closely together in cross-functional teams
question
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new-product development process. Fantastic Flavors uses a ________ approach.
answer
team-based new-product development
question
Which of the following is the goal of the team-based new-product development approach when it uses cross-functional teams that overlap the steps in the process?
answer
save time and increase effectiveness
question
Which of the following is a disadvantage of a team-based approach to new-product development?
answer
It results in organizational confusion and tension.
question
According to the text, the search for new-product ideas should most likely be ________.
answer
holistic
question
A company can install a(n) ________ management system to collect, review, evaluate, and manage new-product ideas.
answer
innovation
question
The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.
answer
yields a larger number of new product ideas
question
Which term refers to the course that a product's sales and profits take over its lifetime?
answer
product life cycle
question
Which of the following best characterizes the decline stage of product development?
answer
sales and profits decline
question
Which of the following statements characterizes the introduction stage of the PLC?
answer
Profits are nonexistent.
question
Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?
answer
growth
question
________ is the product life cycle period when sales fall off and profits drop.
answer
decline
question
Some products that have entered the decline stage have been cycled back to the growth stage through ________.
answer
repositioning
question
A style is best defined as a ________.
answer
basic and descriptive mode of expression
question
The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s. This is an example of a ________.
answer
fashion
question
Flurrbies, a brand of unique winter accessories that quickly fell in and out of favorability with customers, is an example of a ________.
answer
fad
question
The PLC concept can be applied by marketers as a useful framework for describing how ________.
answer
products and markets work
question
Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?
answer
introduction
question
According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.
answer
decline
question
Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?
answer
growth
question
Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to check competition. Kellogg's is in the ________ stage of the product life cycle.
answer
growth
question
Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Sandy the Flying Squirrel, a character from the show targeted to baby boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new launch strategy for Bubble consistent with the intended ________.
answer
product positioning
question
Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?
answer
maturity
question
Which of the following would lead to greater competition in the maturity stage of the PLC?
answer
overcapacity
question
Most products in the marketplace are in the ________ stage of the product life cycle.
answer
maturity
question
Apple's iPod has been called "one of the greatest consumer electronics hits of all time." iPods have been sold in huge numbers, and Apple captures a large share of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.
answer
maturity
question
Over the past few years, Binney and Smith's Crayola crayons have been preferred by users in more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.
answer
maturity
question
When a product is in the maturity stage, the company should most likely consider ________.
answer
modifying the product, market, or marketing mix
question
When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.
answer
product
question
&G 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.
answer
drop
question
Due to dropping sales, a company that manufactures soaps begins to sell them to restaurants and hotels to extend their product's life. The soap manufacturer is in the ________ stage of PLC.
answer
decline
question
When Kraft focused on cost-cutting with its older, established brands, leaving them to wither without much investment or modification, Kraft decided to ________ the older products.
answer
harvest
question
Manufacturers must comply with specific laws regarding ________.
answer
product quality and saftey
question
Because of ________, a company cannot make its product illegally similar to a competitor's already established product.
answer
patent laws
question
CellTones, a new company selling several types 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?
answer
patent laws
question
Which of the following best describes the role of a product steward?
answer
to protect the company from liability by proactively ferreting out potential product problems
question
Which of the following is a consequence of standardizing an international product?
answer
image consistency
