Product Management Exam 1
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237 Terms
According to the 'Analytical Attribute' approach, what are the three types of product attributes?
Features, functions, and benefits.
In the context of product attributes, what is the definition of a 'feature'?
What the product consists of, such as dimensions, components, or materials.
In the context of product attributes, what is the definition of a 'function'?
What the product does and how it works.
In the context of product attributes, what is the definition of a 'benefit'?
How the product provides satisfaction to the user.
Product attributes are often classified into a sequence; a feature permits a _____, which leads to a benefit.
Function
A shampoo contains proteins (feature) that coat the hair (function); what is the resulting benefit?
More shine on the hair.
What type of product attribute is 'price' considered to be in the typology provided?
Feature
What is the difference between a direct benefit and an indirect benefit?
A direct benefit is the immediate result (e.g., clean teeth), while an indirect benefit follows from it (e.g., romance).
Regarding a spoon, the 'small shallow bowl' and the 'handle' are examples of which attribute type?
Features
The fact that a spoon 'can pry, poke, or be used as a catapult' refers to its _____.
Functions
Which analytical attribute approach specifically uses features for analysis?
Dimensional analysis
Which analytical attribute approach utilizes determinant attributes specifically?
Trade-off analysis
A 'Situation Assessment' examines six aspects across a continuum of _____ and _____ factors.
External; internal
Which aspect of the Situation Assessment is considered the most 'External'?
Market Trends and Dynamics
Which aspect of the Situation Assessment is considered the most 'Internal'?
Internal Capabilities
In a Situation Assessment, 'brand perceptions' and 'unmet needs' are components of which aspect?
Consumers
In a Situation Assessment, 'sales unit, revenue, and margin trends' fall under which aspect?
Current Business Performance
What are the four steps to 'Defining the Market Category and Scope'?
Specify the Customer and Need, Identify the Product Type, Set Boundaries, and Consider adjacent/substitute categories.
Defining the market from the 'demand side' involves specifying which two elements?
The customer and the need.
Why is market sizing considered the foundation of strategic planning for a new product?
It determines the scope of opportunity and informs choices like pricing and marketing budget.
When estimating market size, what does the acronym TAM represent?
Total Addressable Market
What is the formula for calculating Total Addressable Market (TAM) using the Bottoms Up method?
TAM = # Customers $\times$ Avg. annual spend
How is the Serviceable Addressable Market (SAM) defined?
The sub-market that can be served based on geography, segment, or channel.
What does SOM represent in market sizing?
Serviceable Obtainable Market (the share realistically winnable in 1–3 years).
Contrast the 'Top Down' and 'Bottoms Up' methods of market sizing.
Top Down starts with published category reports; Bottoms Up builds from fundamental customer counts and spending.
What is the 'best practice' recommendation for estimating market size and growth rates?
Triangulate by using both Top Down and Bottoms Up methods.
According to the 'rising tide' concept, why is market growth rate critical?
A growing market can lift product prospects even if the market is currently small.
What are the five stages of the New Product Process?
Opportunity Identification and Selection, 2. Concept Generation, 3. Concept/Project Evaluation, 4. Development, 5. Launch.
What is the core objective of Stage 1: Opportunity Identification and Selection?
To attract, generate, and screen opportunities for a documented idea proposal.
The document that charts a new product team's direction, goals, and 'rules of the road' is called the _____.
Product Innovation Charter (PIC)
What two dimensions are used in the Innovation Risk Matrix to categorize risk?
Market Newness and Technology Newness.
According to the Innovation Risk Matrix, a project with 'High' Market Newness and 'High' Technology Newness is labeled as _____.
Dangerous
The General Motors EV1 (1996) is used as an example of what type of innovation risk?
High Market Newness
The Dyson Electric Car project, cancelled after $\$2.7$B, is an example of _____.
High Firm Newness
What are the three criteria for Product Portfolio Analysis?
Strategic Fit, Strategic Contribution, and Strategic Priority.
In Product Portfolio Analysis, what does 'Strategic Fit' assess?
Whether the project fits the technology and market focus of the business strategy.
True or False: A brand positioning statement is an advertisement meant for the public.
False (it is an internal strategic document).
List the four levels of a 'Benefit Ladder' from bottom to top.
Product Attributes, Functional Benefits, Emotional Benefits, Higher Order Identity.
Why is it strategically better to position a brand further 'up' the benefit ladder?
The positioning becomes more defensible.
In the FedEx benefit ladder example, what is the 'Higher Order Identity'?
Prestige and Security.
In the FedEx benefit ladder example, 'Overnight Package Delivery' is classified as a _____.
Functional Benefit
Why did Kodak eventually fail despite having 'Warm memories' as an emotional benefit?
It remained focused on film (attributes and functional benefits) rather than evolving.
What 'Higher Order Identity' does Tillamook aim for in its brand ladder?
Savor life through food.
When establishing brand positioning, what are 'Proof Points'?
What differentiates the brand and is something only the brand can own.
What are three common barriers that prevent consumers from participating in certain markets?
Time, cost, and accessibility.
According to Peter Koen, what is the 'sandbox' question managers should ask before specific products?
"What sandbox should I be playing in?"
What is the primary purpose of the 'Special Guidelines' section in a PIC?
To provide 'rules of the road' or strategic constraints for the team.
In product innovation, what is 'Form'?
The physical thing created or the sequence of steps for a service.
In product innovation, what is 'Technology'?
The source or means by which the product's form was attained.
A 'Product Concept' is a potential product formed by the meeting of at least _____ of the three inputs (Form, Technology, Benefit).
Two
Why is putting 'Benefit' last in the innovation process considered risky?
It results in a solution trying to find a problem.
Google Glass is cited as an example of an innovation that had Form and Technology but lacked what?
Added Benefit (especially considering the price).
What is a 'Product Concept Statement' designed to provide to potential customers?
Information regarding the product's benefit, form, and technology (or at least two of them).
Phase 1 of the new products process is _____ in nature.
Strategic
At the end of the Concept Generation phase, what is the primary evaluation task?
Initial Review: Does the idea pass the initial screen and go to concept development?
The 'Full Screen' evaluation happens at the end of which phase?
Concept/Project Evaluation
During the 'Development' phase, what is the key marketing-related question?
"Should we market it? And if so, how?"
Define an 'Opportunity Concept' as it relates to Phase 1 of the New Products Process.
A company skill, resource, or a customer problem that identifies a path for innovation.
What is a 'Stated Concept'?
A form or technology combined with a clear statement of benefit.
The 'Predevelopment' period of innovation typically encompasses which three phases of the new products process?
Opportunity Identification, Concept Generation, and Concept/Project Evaluation.
What does the 'Launch' phase include besides the actual product release?
Management of the product postlaunch to ensure it reaches its objectives.
What are the three main strategic elements that provide the framework for new product management?
The new products process, the product innovation charter (PIC), and product portfolio management.
In the Situation Assessment, 'customer concentration' and 'influence' are evaluated under which category?
Customers & Channels
In the Context of attributes, what constitutes 'Source Ingredients' and 'Manufacturing Process'?
Features
The 'Economic gains' or 'Savings' a user experiences are categorized as which type of attribute?
Benefits
What is the primary difference between a 'product' and a 'service' in terms of 'Form'?
A product is a physical thing; a service is a sequence of steps by which it is created.
Why might a firm start the innovation process with 'Technology' first?
They have a proprietary technology and search for a market group with a need it can meet.
In the Innovation Risk Matrix, what level of risk is associated with 'Some' Market Newness and 'None' Technology Newness?
Low
A Product Innovation Charter (PIC) is often compared to which corporate document, but at a micro level?
Mission Statement
Which phase is concerned with 'Technical Questions' like "Have we developed the product?"?
Development
What term describes markets that offer alternative solutions to the same customer need but are not the exact same product category?
Adjacent or substitute categories.
What is the goal of the 'Postlaunch Evaluation' task?
To determine how the product is performing relative to its original objectives.