Exam 11: Developing and Managing Products

The first stage of the new-product development process is:

Companies that are most likely to succeed in the development and introduction of new products typically are characterized by all of the following EXCEPT:

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.

Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

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 fact that Fitbit can monitor motion while awake and asleep makes it different from competing products that might increase its rate of adoption.Which product characteristic affecting the rate of adoption does this illustrate?

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

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.Because buyers of fishing lures want to have the newest,most technologically improved lure,most of Rapala's customers would more than likely fall into the _____ category of adopters.

For a firm that adheres to the product concept,the logical place to start generating new-product ideas is with the customers of the firm.

A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters.They are cautious and thoughtful and do not try the product without asking someone else.The customers' dominant characteristic is deliberateness.In terms of the diffusion process,these customers are most likely:

When Procter & Gamble wanted to enter the hair-care market,it purchased Wella,a leading German company specializing in hair-care products.What new product category does this acquisition represent for P&G?

The MOST important factor in successful new-product introduction is:

The growth stage is the first stage of the product life cycle.

Procter & Gamble introduced a new fabric softener dispenser that consumers stick to the inside of the dryer drum and sent consumers free samples in the mail.This strategy likely increased the rate of adoption of the new product.

A product that is perceived as new by a potential adopter,whether the product is "new to the world" or simply new to the individual,is called a(n):

All of the following are product characteristics influencing the rate of adoption EXCEPT:

The development of Coke Zero by Coca Cola would not be considered a new product since the company was already making soft drinks.It would simply be called a line extension.

One benefit of test marketing is that the marketing activity is shielded from competitors.

The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.

The final stage in the new-product development process is:

A new medication to eliminate fungal growths on people's toenails may have a slow rate of adoption because it is not a highly visible item in homes.Also,this item is not often discussed among friends and coworkers.This is an example of how the characteristic of _____ can work to slow the adoption process.