Marketing management chapter 9

To create successful new​ products, a company must​ _______.

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Part 1

A.

cut costs to keep the price of new products low while delivering acceptable quality

B.

spend more on research and development​ (R&D) than its competitors and understand its consumers

C.

obtain successful products through acquisitions instead of doing internal development

D.

focus its new product development efforts only on consumers and deliver value

E.

understand its​ consumers, markets, and competitors and develop products that deliver superior value to customers

To create successful new​ products, a company must​ _______.

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Part 1

A.

cut costs to keep the price of new products low while delivering acceptable quality

B.

spend more on research and development​ (R&D) than its competitors and understand its consumers

C.

obtain successful products through acquisitions instead of doing internal development

D.

focus its new product development efforts only on consumers and deliver value

E.

understand its​ consumers, markets, and competitors and develop products that deliver superior value to customers

E. understand its consumers, markets, and competitors and develop products that deliver superior value to customers.

A company can obtain new products by buying a whole​ company, a​ patent, or a license to produce someone​ else's product through​ _________.

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Part 1

A.

product enhancements

B.

new product brands

C.

acquisition

D.

new product development

E.

product improvements

C. acquisition.

Which of the following statements about new product development strategy is​ correct?

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Part 1

A.

New products are not a major source of growth for companies.

B.

Good advertising creates successful new products.

C.

Innovation can be very expensive and very risky.

D.

A new product will succeed as long as it is priced correctly.

E.

New products are usually successful because consumers like new things.

C. Innovation can be very expensive and very risky.

Which of the following statements concerning new products is​ correct?

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Part 1

A.

A modified product is not considered a new product.

B.

Modified and improved products are considered new.

C.

To be considered​ new, the product must be something consumers have not seen before.

D.

Products that are merely improved in some way are not considered new.

E.

Most new products succeed within two years of their introduction.

B. Modified and improved products are considered new.

________ represent an external source of new product ideas for a company.

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Part 1

A.

Innovation centers

B.

​R&D

C.

Hackathons

D.

Distributors

E.

Intrapreneurial programs

D. Distributors.

Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of​ short-listed ideas will be adequately rewarded. In this​ case, Goldtone is using​ ________ to generate new product ideas.

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Part 1

A.

marketing strategy development

B.

business analysis

C.

test marketing

D.

concept development

E.

crowdsourcing

E. crowdsourcing.

Which stage of the new product development process calls for a huge increase in​ investment, and shows if the idea can be turned into a workable​ product?

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Part 1

A.

Product development

B.

Marketing strategy development

C.

Concept development and testing

D.

Test marketing

E.

Idea generation

A. Product development.

At which stage of the new product development process is crowdsourcing​ used?

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Part 1

A.

Marketing strategy development

B.

Idea screening

C.

Product development

D.

Commercialization

E.

Idea generation

E. Idea generation.

Which of the following is NOT a part of the marketing strategy statement in the new product development​ process?

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Part 1

A.

A description of the target market

B.

An outline of the planned​ price, distribution, and marketing budget

C.

An analysis of the new​ product's financial attractiveness

D.

A description of the planned value proposition

E.

A description of the​ long-run sales, profit​ goals, and marketing mix strategy

C. An analysis of the new product's financial attractiveness.

Which of the following statements regarding managing the new product development process is​ correct?

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Part 1

A.

Customer involvement has a positive effect on the new product development process and product success.

B.

​Team-based new product development slows the time to get a new product to market.

C.

New product development should be centered on​ R&D and technical research.

D.

Companies should take a compartmentalized approach to new product development.

E.

Sequential product development is the fastest way to get a new product to market.

A. Customer involvement has a positive effect on the new product development process and product success.

Installing an innovation management system to​ collect, review,​ evaluate, and manage new product ideas represents​ a(n) __________ approach to new product development.

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Part 1

A.

systematic

B.

sequential

C.

crowdsourced

D.

​customer-centered

E.

intrapreneurial

A. systematic.

nstalling an innovation management system to​ collect, review,​ evaluate, and manage new product ideas represents​ a(n) __________ approach to new product development.

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Part 1

A.

systematic

B.

sequential

C.

crowdsourced

D.

​customer-centered

E.

intrapreneurial

A. systematic.

Intuit​ Labs, a division of​ Intuit, the accounting and payroll software​ developer, follows a​ "Design for Delight​ (D4D)" development​ philosophy, which states that products should delight customers by providing experiences that exceed expectations. Which new product development approach is Intuit​ using?

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Part 1

A.

Systematic new product development

B.

​Customer-centered new product development

C.

Marketing strategy development

D.

​Team-based new product development

E.

Crowdsourcing

B. Customer-centered new product development.

Which is the final stage of the product life​ cycle?

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Part 1

A.

Decline

B.

Maturity

C.

Introduction

D.

Growth

E.

Commercialization

A. Decline.

When Dr. Lawncare developed his revolutionary new​ solar-powered lawnmower, he expected that during the growth stage of the product life cycle​ __________.

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Part 1

A.

there would be lagging adopters

B.

there would be high costs per customer

C.

the company would see rising profits

D.

the company could anticipate customers as innovators

E.

there would few competitors

C. the company would see rising profits.

Which stage of the product life cycle is characterized by negative profits and high costs per​ customer?

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Part 1

A.

Product development

B.

Introduction

C.

Growth

D.

Decline

E.

Maturity

B. Introduction.

The PLC concept also can be applied to what are known as​ styles, fashions, and fads. A​ ________ is a currently accepted or popular​ ________ in a given field.

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Part 1

A.

​fashion; fad

B.

​style; fashion

C.

​fad; style

D.

​fad; fashion

E.

​fashion; style

E. fashion; style.

Which of the following is an appropriate strategy during the maturity stage of the product life​ cycle?

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Part 1

A.

Select products to​ maintain, harvest, or drop.

B.

Produce basic versions of the product and focus on selling to those buyers who are most ready to buy.

C.

Modify the​ market, product offering and marketing mix.

D.

Use promotional spending to inform consumers and get them to try the product.

E.

Shift some advertising from building product awareness to building product conviction and purchase.

C.Modify the​ market, product offering and marketing mix.

Which of the following is an effective strategy during the introduction stage of the product life​ cycle?

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Part 1

A.

Build interest in the mass market.

B.

Build intensive distribution.

C.

Use sales promotion to encourage brand switching.

D.

Cut price.

E.

Build product awareness among early adopters and dealers.

E. Build product awareness among early adopters and dealers.

During which stage of the PLC do firms decide whether to​ maintain, harvest, or drop​ products?

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Part 1

A.

Maturity

B.

Decline

C.

Product development

D.

Growth

E.

Introduction

B. Decline.

Which of the following statements is true regarding product life cycle​ curves?

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Part 1

A.

Managing products through their life cycle is an easy task.

B.

Marketing strategies do not change for different life cycle stages.

C.

The sales of a typical product follow an​ S-shaped curve made up of five stages.

D.

All products follow the traditional​ five-stage PLC model.

E.

Once a product reaches the decline​ stage, it cannot be recycled back to growth.

C.

The sales of a typical product follow an​ S-shaped curve made up of five stages.

__________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

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Part 1

A.

Attorneys

B.

Brand managers

C.

Product managers

D.

Product stewards

E.

Ombudsmen

D. Product stewards.

Which of the following statements regarding socially responsible product decisions is​ correct?

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Part 1

A.

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

B.

Companies can safely ignore patent laws.

C.

When companies drop​ products, they do not have any obligations to​ suppliers, dealers, and customers.

D.

Safety legislation has been passed to regulate chemical​ substances, drugs, and​ poisons, but not​ toys, automobiles, or fabrics.

E.

Manufacturers are generally not concerned with product liability.

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

To succeed in​ France, McDonald's had to​ ___________.

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Part 1

A.

use the same recipes as the company offers in the United States

B.

speed up their service​ times, as the French eat more quickly than the U.S. market

C.

tailor its products to local tastes in France

D.

decrease production because the French market consumes less food than the U.S. market

E.

standardize their product offerings

C. tailor its products to local tastes in France.

Which of the following is NOT a public policy issue marketers should be concerned​ with?

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Part 1

A.

Product warranties

B.

Patent protection

C.

Product quality and safety

D.

Acquiring and dropping products

E.

Adapting to global markets

E. Adapting to global markets.