Exam 11: Developing and Managing Products

During the _____ stage of the new-product development process,production starts,inventories are built up,the product is shipped to distribution points,the sales force is trained,and advertising and promotion begin.

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 day cares" that are more like a resort or spa than an ordinary kennel for their canine companion.Day care 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 webcam,and some doggy day cares have a phone where owners can talk to their dogs when they feel their pets need to hear their voices.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.One challenge to adoption of the dog day care is the fact that dog owners are used to paying a somewhat minimal fee for boarding their dogs in a kennel,while a day care center may demand many times as much for the same time span.This suggests that the _____ of the new product may affect the rate of diffusion.

Rapala VMC Corporation 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.The testing of new lures by tournament professionals and fishing guides would take place in which stage of new-product development?

Fitbit 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?

Which of the following is the LEAST likely source for new-product ideas?

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

The product life cycle is a biological metaphor that traces the stages of a product's acceptance,from its introduction (birth)to its decline (death).

When the Segway Human Transporter was introduced in 2002,many people expected the product to be a phenomenal success.While the Segway is still on the market,it has never been the success so many expected.A recent Wall Street Journal article suggested that the Segway,while brilliant technologically,seemed impractical to most people since it could not be used to replace their current method of transportation.In other words,the Segway had problems with:

Fitbit 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 idea for the Fitbit was generated from an employee retreat in which everyone was encouraged to think of unlimited product ideas for the fitness-minded consumer.Participants did not critique any of the ideas,as the goal at that point was just to generate ideas.What idea-generating technique does this illustrate?

Which of the following rate of adoption characteristics most likely frustrated Harmonix as a software company and pointed it in the direction of Guitar Hero?

The concept of "organized abandonment" is based upon a periodic audit of all goods and services that a firm markets.

The failure of Rock Band 3 signaled what stage of Harmonix's venture into the music videogame?

The same manufacturer produces Hanes,Playtex,and Bali clothing for women.This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas,such as jewelry,wide shoes,and belts.The manufacturer used a research technique called a:

A European dairy that is famous for its rich ice creams has introduced basil-,tomato-,fennel-,and oregano-flavored ice creams.In the process of developing these new flavors,the dairy surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of marketability.This survey would have happened during which stage of the product development process?

For years,Diet Dr.Pepper has been considered a diet drink.After declining sales,the company is attempting to present Diet Dr.Pepper as an alternative to having a dessert.This is an example of a _____ strategy.

New-to-the-world products,where the product category itself is new,are also called:

Which of the following statements about the product life cycle (PLC)is true?

Liz tends to adopt new products sooner than a lot of other people,but she weighs the pros and cons before buying.She does considerable product research,but her friends don't really look to her for information.She really deliberates before she makes a purchase.Liz is best described as a(n):

Which of the following questions is NOT likely to be asked during the business analysis stage?

_____ occurs when an existing product is targeted toward new market segments.It is another type of new-product development because the product is new to that segment.