Exam 7: Product Design and Development

The product development process at BetterBuilt begins and ends with the evaluation of opportunities and selection of the best product ideas.

The process of transforming inputs into goods and services offers value to customers by providing them with utility.Identify and describe the four types of utility that can bring value to buyers.

Scenario-Based BetterBuilt Products, a large machine shop in the Pacific Northwest, employs 138 people in design, accounting, sales, purchasing, production, and delivery.The company's machined products are of the highest quality, production almost always stays "on track," and delivery generally meets or exceeds customer expectations.Management regularly looks for ways to improve effectiveness and efficiency of operations by reducing production/cycle time and cutting costs<underLine>.</underLine> -BetterBuilt provides time and place utility but not form utility.

A street vendor selling hotdogs outside an office building is creating place utility.

What is the purpose of a patent?

When a soap manufacturer adds liquid soap to its product line, the manufacturer is providing which type of utility?

You should document your idea as soon as you think of it.This can be done by filling out a form, stating the purpose of your invention and the current date, and then sign it and have someone else witness it.

Peggy Deardon's DVDs classifies its rental movies according to categories such as "Action," "Comedy," "Foreign," "Children's," and so on.Which of the following is Peggy Deardon's primary standard for segmenting its market?

Psychographics is an essential part of sales forecasting.

You might want to subdivide a segment further to isolate a market.

The breakeven point in units is calculated using this formula: fixed costs divided by contribution margin per unit.

The best way to have a good idea is to:

You can protect your rights to your idea with a patent.

The goal of the "design with manufacturing in mind" step in the product development process is to:

Once you receive your patent from the U.S.Patent and Trademark Office, it is good around the world.

Connie has an opportunity to buy out a struggling Italian restaurant in one of her better market areas.Before taking this step, she should ask herself all of the following questions except:

What type of a product is described as a "purple cow" and how did Seth Godin, marketing consultant, come up with term?

An example of a "new-to-the-company" product sold by Just Born is _____.

Scenario-Based Your goal is to sell jogging shoes to those 65 and other who live in Florida.Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S.(2) 600,000 of them live in Florida.(3) Florida attracts 20% of all people who move when they retire.(4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older.(5) You estimate that your sales will increase by 25% in year 2. -Which of the following piece(s) of information would be used to forecast your demand for year 2?

To get a patent your idea must be new, not obvious and have utility (usefulness).