Exam 12: Developing and Managing Products

New products are classified solely as innovations that have never been sold by any organization.

____ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.

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. Because some products are not doing well, Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be discontinued. He is suggesting a

Lowry Lawn Supplies manufactures lawn mowers and other lawn care products. Their latest lawn mower comes with blades that incorporate new technology that allows them to last five times longer than typical blades. The lawn mower also includes a comfort grip that is easier to hold and an updated style available in a variety of colors. Lowry Lawn Supplies is most likely differentiating itself through _____ with its blades and through _____ with its handle and styling.

The concept of product quality is the same from consumer to consumer and from consumer markets to organizational markets.

You were just hired to manage the new-product development process at a consumer products company. In your first meeting with the CEO since being hired, she recounted to you the numerous times in the past when the company launched products it thought would be successful. However, it later came to realize the products had a detrimental impact on the company's overall costs and profits mix. She wants you to revamp the company's new product development process to prevent this from happening in the future. Which of the following steps in the new-product development process should you overhaul in order to address the CEO's concerns?

Compare and contrast line extensions and product modifications.

A brand manager in a multiproduct firm would be responsible for

How a pair of jeans looks, regardless of the price, is an example of styling.

Estimates of sales are an important component of business analysis.

Test marketing should be conducted when a product has been given a low probability of success.

Why is it often difficult for organizations to delete products?

Warby Parker was developed to challenge the dominant player in the market for eyewear. Founder Neil Blumenthal realized that a major firm, Luxottica, had an almost monopolistic hold on the eyewear and vision industry. They could therefore set high prices. He and his partners developed Warby Parker to develop less expensive glasses in-house at a fraction of the cost. Not only are Warby Parker's glasses much more affordable, but also the company donates money to a vision care nonprofit organization for every pair of glasses it sells. This allows people in developing countries access to eyewear who normally could not afford it. Warby Parker is an example of a company that has successfully engaged in disruptive innovation.

Business analysis provides a tentative sketch of a product's profitability.

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification.

Sales personnel are an external source for new product ideas.

A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?

The phase of new-product development in which a small sample of potential buyers are presented with a product idea through a written or oral description in order to determine their attitudes and initial buying intentions regarding the product is called