Exam 8: Developing New Products and Managing the Product Life Cycle 

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

Differentiate between styles, fashions, and fads. Illustrate your response with examples of each.

Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a approach in their new product development process.

Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use next to arrive at a realistic number of products for the new fatigues line.

Which of the following is true of the growth stage of the product life cycle?

Define commercialization. Explain the two important issues that a company must decide during this stage.

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?

Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes In an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes?

During the decline stage of the product life cycle, product sales may plunge to zero, or they may drop to a low level where they continue for many years.

During concept testing, a product is evaluated by management without any input from external sources.

Companies often sponsor employee 'hackathons' or encourage employees to develop new product ideas. When companies promote innovation from within its ranks (employees) they are really promoting intrapreneurship.

The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) source of new product ideas for the Dairy Bar.

The team-based new product development approach saves times and increases effectiveness because departments work closely together in _ _.

Which of the following is true of the product life cycle (PLC)?

Kallton 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, Kallton is using _ to generate new product ideas.

At Fantastic Flavours, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavours uses a(n) _ approach.

If a product passes both the concept test and the product test, the next step is most likely to be _.

The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as _.

In which of the following cases is little or no test marketing most likely recommended for a new product?

When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries.