Exam 9: Developing New Products and Managing the Product Life Cycle

In a ________, new products and marketing tactics are tested online in a virtual shopping environment.

Which of the following refers to the course that a product's sales and profits take over its lifetime?

At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments?

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.

A marketer has selected a single city in which to conduct a test market. What can be concluded from this choice of a single-city test market?

Explain concept testing.

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

A product idea is ________.

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

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 the Moose consistent with the intended ________.

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.

Flurrbies, a brand of unique winter accessories that quickly fell in and out of favor with customers, is an example of a ________.

A company can install a(n) ________ management system to collect, review, evaluate, and manage new product ideas.

A style is best defined as a ________.

When a product is in the maturity stage, the company should most likely consider ________.

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?

Refer to the scenario below to answer the following question(s). 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 electronic 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 shaped 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 7 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 racecars 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 be reduced after Evelyn recouped some of her costs. After a 500-unit production run and a substantial financial investment, Evelyn set up a multiple-city test market, in a Chicago mall and in an appliance store in New Jersey and several other retail stores in Florida. "It's such a novel idea," Evelyn added. "People will notice it, even if they don't buy it right away." -GreenTree Lawn and Garden Products is engaged in marketing strategy development. The first part of the marketing strategy statement created by management should outline the product's planned price, distribution, and marketing budget for the first year.

Why are ad expenditures high for products in the introduction stage of the PLC?

Which of the following is a consequence of standardizing an international product?

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.