Exam 11: Developing and Managing Products

Profits typically reach their peak during the growth 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.After the trade show,the newest lure made by Rapala will enter which stage of the new-product development process?

After products and marketing programs have been developed for new products,they are usually tested in the marketplace.What is test marketing? How may a company benefit from the use of such marketing? How can test marketing cause problems for a company?

There are five categories of adopters participating in the diffusion process.Name and briefly describe each of these five categories in the correct order from first adopter to last adopter.

How did Viacom's marketing managers respond to early drops in sales?

Dial Corporation has introduced Dial Basics,a premium soap product with an emphasis on value.Dial Basics would be an example of which strategy to create a new product?

Guitar Hero is the diffusion of an innovative product,Karaoke Revolution.

Normally,the longest stage of the product life cycle is the _____ stage.

Describe the idea screening stage of the new-product development process.Describe a common test used during the screening stage.

Which of the following stages of the new-product development process is the first filter,which serves to eliminate new-product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason?

Martina loves her new Kindle and has tweeted to her followers several times about how great the product is.This is an example of communication directly from the marketer to potential adopters.

Describe how a multinational corporation can most efficiently and effectively meet the needs of the global market.

The rate of sales decline during the decline stage of the product life cycle is largely governed by:

It is considered inefficient to use concept tests during the idea screening stage of the new-product development process.

The Internet offers a fast,cost-effective way to conduct test marketing.

Harmonix's move from software to videogames gave it a sense of purpose and ultimately a winning product.Though hardly a traditional development process,one aspect of that process is consistent with the development of Guitar Hero?

Leon is not very quick to purchase innovative products when they come out,but after a while he breaks down and buys if after most of his friends have bought it.He gets most of his information from them when he decides to buy something.He is very skeptical of marketing,so he trusts his friends more than anything.Leon is best described as a(n):

When Coca-Cola North American debuted Gold Peak iced tea,a spokesperson for the company said,"In looking at the ready-to-drink tea market,we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make.Gold Peak is a quality product that brings back that classic taste.We're going to do a lot of sampling with this product because we believe that if people try it,they're going to love it and stick with it." In other words,its adoption rate will rely on its:

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 degree to which the newest lures are perceived as superior to earlier models refers to their _____,a characteristic used to predict the rate of adoption.

The first filter in the product development process is called screening.