Exam 12: Developing and Managing Products

You are in the new product development process for a new consumer electronics product. So far, everything has been very positive, and you are starting to believe this product might be a blockbuster. As you prepare for the next stage of the process, you are concerned that your competition might try to "jam" your new product by increasing promotional activities for their own products. More importantly, you are concerned that these competitors might try to copy your product as you move into this next stage. Which of the following stages of the new-product development process are you about to enter?

Scenario 12.2 Use the following to answer the questions. Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear; this product, however, is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. Refer to Scenario 12.2. Polar management is currently in which stage of new product development?

Patrick is a member of a consumer marketing panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are "How often would you buy this product?" and "Which features are of little or no interest to you?" Patrick is most likely participating in the ___ phase of the new-product development process.

A brand manager is a type of product manager.

Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth noticed a problem with the way one of the pockets was strung. Since it was a weekend, he didn't expect to have it repaired. However, when he called the store to leave a message, someone answered the phone. She gave Seth a number where he could call a repair representative who would come straight to Seth's house within an hour. Brunswick Billiards is most likely differentiating itself through

An important question in the business analysis stage of new-product development is "Is demand strong enough to justify entering the market and will this demand endure?"

A new variety of Doritos is initially introduced in Fort Worth, Texas; Columbia, South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial success, Frito-Lay markets the Doritos in those entire states, then the adjacent states, and finally the entire country. Frito-Lay is using a ____ for its new variety of Doritos.

A genuinely new product, like the iPhone once was, offers

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)

Head-to-head positioning can be appropriate even when the price is higher.

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs are called product quality.

If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast U.S. region, he might want to engage in ____ to reduce the validity of the other firm's results.

The car has undergone major redesigns and upgrades in the past few decades. For instance, car windows used to have to be rolled down manually. Now drivers can push a button to roll their windows up and down. The body of the car has been changed as well. In particular, the front of the car has been changed so that in case of a crash, the very front of the car will absorb more of the impact. The intent is to leave the cabin area intact so that the driver and passengers will not be harmed. The first example is a(n) _________________ modification, while the second change is an example of a(n) ______________modification.

Functional modifications make an existing product more durable.

If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product?

When Natalie and Chris analyze the results from the recently completed test market to determine if any changes in the marketing mix are needed, they are in the ____ phase of the new-product development process.

Angela and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie dessert, but they have some doubt about which of two promotional and pricing campaigns will be better received by consumers. In this instance, they probably should proceed to the ____ stage of the new-product development process.

Styling involves the specific design characteristics that allow a product to perform certain tasks.

Alexandria has gone to the store to shop for a new backpack. She looks for the same brand she has always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n) _____ modification.

The test marketing stage