Exam 12: Developing and Managing Products

If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of ____ manager.

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. The group of people that management has assembled to take on the task of new-product development is best described as

Brand and product managers operate cross-functionally.

Which of the following statements is true about organizational structures for managing products?

The business analysis stage of new-product development explores how well the new product fits in with the firm's existing product mix.

The phase-out approach to product deletion exploits any strengths left in the product.

Test marketing is used by companies of all sizes, primarily because of the perceived risk of product failure on the open market and the associated consequences.

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.

Product managers are most useful in the development of new products.

Madeline runs a local ice cream stand and is developing a new type of ice cream sundae. She just sent a press release to the local newspaper and updated her website with information about the new sundae. Based on this information, Madeline is most likely in the _____ stage of the new-product development cycle.

A _________ works outside established organizational divisions and has greater flexibility to apply innovative approaches to new products and markets.

The major drawback in using aesthetic modifications is that their value is determined subjectively.

A ____ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

Which of the following is the best example of disruptive innovation?

Designing a product that customers perceive as different from competing products is an example of product differentiation.

What is concept testing, and why is it important?

A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)

Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.