Exam 8: Developing and Managing Products and Services

What is the final step in the new-product development process?

A company's market offering usually includes some support services.

Many companies now use the Internet to provide product ________.

Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his two-year contract with Elmore ended. Herb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Herb Marks established a brand name, known merely as Marks, and decided to expand on it. Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts. "We make an excellent product," Herb Marks stated, "and we honour a good guarantee on everything we sell. But let's face it—we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Marks brand is now fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after. -Explain Herb's market offering.

Give two examples of fads that passed through the PLC quickly.

To test the product concept of a new idea, the R&D department of a firm can develop a prototype that will excite consumers and can be produced quickly at budgeted costs.

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons about these products.

The maturity stage of the PLC is characterized by a slowdown in sales growth.

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

The ________ requires sellers to provide detailed nutritional information on all prepackaged food products.

According to the authors, managers must accept the ________ of a product.

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.