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

A company launching a new product into the market must first decide where to launch the product.

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?

Describe three public policy issues or regulations that marketers should carefully consider as they make decisions about adding or dropping products.

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.

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 ________.

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

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.

In a(n) ________, new products and marketing tactics are tested among specifically identified groups of customers and stores.

Over the past few years, Binney and Smith's Crayola crayons has expanded to more than 80 countries around the world. Crayola crayons are in the ________ stage of the PLC.

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." -Which of the following stages of new product development was Evelyn involved in when she set up a demonstration booth to learn about consumers' feelings toward her vacuum cleaner?

GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.

The potential sales, costs, and profit projections are being determined for a new product idea at Art for Kids. Which of the following stages of the new product development process does this illustrate?

Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each phase of the product life cycle.

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

Harvesting the product involves reducing various costs such as maintenance, R&D, and advertising to increase profits.

Which of the following statements is true of test marketing?

Identify the major sources of external new product ideas and explain why these sources offer advantages over internal sources.

The distribution strategy during the decline stage of PLC involves building more intensive distribution networks.

Which of the following statements best explains why idea screening may be the most important step of new product development?

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?