Exam 11: Developing and Managing Products

The pedometer is getting kicked up a notch with the new Fitbit device.The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep.It digitally records the distance a user walks or runs,right down to the number of steps,and calories burned.The device wirelessly sends data to its Web site,fitbit.com,giving users minute-by-minute details.Users can add consumption information at the Web site,allowing an accurate picture of calorie consumption and expenditures.Unlike other devices,like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399,the Fitbit combines both functions.The first-time Fitbit setup isn't very easy for users,but once over that hurdle,it's relative easy to use. -Refer to Fitbit.The company marketing the Fitbit does not currently market a product like this.Which of the following best represents the category of new product the Fitbit is for this company?

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created,the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers.The consumer group was asked to evaluate the three product ideas in terms of their marketability.This stage of new-product development is called:

Mosaic Labs has developed a chemical compound that prevents mildew in even the most humid climates.The week after the compound was invented,a group of the firm's employees got together and listed ways the product might be used.This is an example of:

Oakley,the manufacturer of protective eyewear for sports enthusiasts,has recently introduced Oakley's Thump,UV sunglasses that allow the wearer to store and listen to 120 different songs.Which of the following product characteristics would likely exert the greatest influence on the market success of these new glasses?

Going to the Dogs Demand for pet services is greatly increasing across the United States. In fact,Americans will spend nearly $44 billion dollars on their pets this year.Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion.Daycare services for dogs now include toy rooms,outside play areas,doggie massages,treadmills,swimming pools and cushy beds for nap time.Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet,depending on the amenities that the pet owner chooses. -Refer to Going to the Dogs.Suppose before opening the It's a Dog's Life doggy resort the owners gathered together a group of ten dog owners to discuss what they would want to see in the ideal dog daycare center.This would be an example of:

A VCR player is a good example of a product in the maturity stage of the product life cycle.

Joaquin didn't buy a netbook computer when they first came out,but he did purchase one a year after they were introduced into the market.He is very active in his church and local arts council,and many of his friends asked him which brand to buy when they were considering purchasing a netbook.Joaquin is best described as a(n):

Concept tests are considered fairly good predictors of success for line extensions and for products that do not require major changes in consumer behavior.

Briefly describe a typical marketing strategy followed for the four Ps in each stage of the product life cycle.Name the stages of the product life cycle at the top of the chart.

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

Jeni's Splendid Ice Creams is famous for its unusual flavors,such as Wildberry Lavender,Goat Cheese with Red Cherries,and Sweet Corn and Black Raspberries .Which of the following product characteristics would most likely influence the market success of these flavors?

The product life cycle concept encourages marketing managers to act reactively.

Seven employees from a company are trying to come up with ideas for new-product development.The employees are all in a room together,shouting out potential ideas.The ideas are written down and evaluated as they are generated.This is an example of brainstorming.

When P&G began marketing Tide Free & Gentle,which is dye- and perfurme-free,this represented which new product category?

Jeni's Splendid Ice Creams has decided to put its new Beet Cake with Black Walnut ice cream on the market.This product has entered the _____ stage of new-product development.

During the growth stage of the product life cycle:

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century." -Refer to Rapala.Fishing lures are most likely in the _____ stage of their product life cycle.

Which of the following products has the lowest level of trialability?

Global R&D is important for two reasons.What are they?

Which of the following statements about simultaneous product development is FALSE?