Exam 12: Developing and Managing Products

The purpose of test marketing new-product offerings is to:

All of Martin's friends recognize that he knows a lot about cars. He is very up-to-date on new models and knows about the performance and reliability of almost every car. His friends often ask Martin for his guidance when they are in the market for a new car. Martin can be considered a(n) _________ in regard to automobiles.

Not all products fit with all companies. For example, while a concept might appear to be a good idea, it might not fit well with a particular company's image or distribution channels. It is important these ideas be "weeded out" early in the new-product development process. Typically, this takes place during the new-product development:

4K curved screen televisions were introduced to the consumer market in April 2014. Led by Korean manufacturers Samsung and LG, prices were high and sales slow for the first two years. Currently, sales are increasing at an increasing rate, they have gained much wider distribution, and new competitors have entered the market. Manufacturers are now realizing profits from the 4K curved televisions, which are in the __________ stage of the product life cycle.

Annie's Inc., which produces vinegar for cooking purposes, identified new uses for its product and started promoting it as a fabric softener and a cleansing product. The company started selling the same product in different packages modified for different types of uses. This strategy used by Annie's to increase the sales of its product is an example of a _____ strategy.

McDonald's started with a simple concept in 1940 - fast service offering only hamburgers, cheeseburgers, potato chips, and drinks at the start. However, they menu soon expanded to include French fries and milkshakes. This process of menu expansion continues to today, with a broad range of sandwiches, drinks, salads, and breakfast items to serve their customers. There does not appear to be any end in sight to the menu items! This expansion is an example of:

Manufacturers of consumer food items often provide taste tests when they introduce new products. One of the benefits of this approach is consumers can be moved through multiple steps of the new-product adoption process. Which step of the new-product adoption process can NOT be experienced through a taste test?

Arm & Hammer continues to introduce new products based on the "eliminates odors" selling proposition. A couple of years ago, one of Arm & Hammers winners was the Arm & Hammer Cat Litter. This product has had initial success and sales are still increasing. Which of the following marketing activities would be appropriate now for the A & H Cat Litter?

Individuals who purchase new products almost as soon as these products reach the market are called _____.

List out the characteristics of product innovation that influence its adoption rate.

ALDI was first started in Germany in 1946 by brothers Theo and Karl Albrecht. However, it would take 30 years before they took their concept to the United States, opening the first U.S. store in Iowa in 1976. Based on the same concept as the stores in Europe, ALDI now has 1,600 stores in 35 states. ALDI bringing their concept to the United States is an example of:

What are the different ways in which firms can extend a product's lifecycle? Explain any one of them.

In the maturity stage, heavy promotional outlays emphasize any differences still separating competing products, and brand competition intensifies.

Zara Inc., a well-known cosmetics manufacturer, introduced its anti-wrinkle cream in the Asian market after its sales in the European market leveled out due to stiff competition from rival products. This is an attempt to extend product lifecycle by:

The Apple iPad was a revolutionary device was introduced in 2010. There was nothing like it on the market and, despite its price of nearly $700, sales immediately took off. In fact, over 300,000 iPads were sold in the United States alone in the first 24 hours after release. There was really nothing like it on the market. While still a highly profitable product, there are now many alternative products on the market and iPad sales are starting to decline. The iPad is in the _______ stage of the product life cycle.

Apple customers have a high degree of brand loyalty. Starting with the Apple I in 1976, Apple has introduced a stream of products for their customers. Look around your classroom and you are likely to see Apple laptops and the same students with an iPhone and perhaps an Apple Watch. Apple has largely grown their business through:

A service encounter is a point at which a consumer interacts with a service provider.

In the awareness phase of the consumer adoption process, consumers make a trial purchase of an item to determine its usefulness.

The assortment of product lines and individual product offerings a company sells is called its product _____.

Which of the following is most likely to be true of consumer innovators?