Exam 8: New Products: Developing and Managing Innovation

A product idea is an idea for a possible product a company can offer the market,while a product concept is a detailed version of the idea stated in meaningful consumer terms.

Simulated test marketing enables a company to clearly estimate the repeat-purchase rate under conditions where consumers spend their own money and choose among competing brands.

Simulated test markets allow firms to obtain realistic evaluations of new products in 'real world' settings while hiding their activities from competitors.

A homewares retailer wants to add new lines of products to its 46-store chain.Managers are correct in believing that the purpose of idea generation is to create a few ideas,and the purpose of succeeding stages is to increase that number.

The PLC concept can be applied by marketers as a useful framework for describing how ________.

Which of the following best describes the role of a product steward?

When LEGO developed the LEGO Mindstorms build-it-yourself robot,more than 1000 intrigued customers formed their own web community devoted to making it better.This is an example of customer co-creation.LEGO embraced it.

Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n)________ of the product's life-cycle.

Once the prototype of a new ride-on lawnmower,made especially for women,passes product tests,the next step is ________.

The search for new-product ideas should be ________ rather than ________.

In the early 1990s,Jarrah was the first brand in the Australian market to offer pre-prepared,instant coffee mixes in flat and frothy varieties.The brand featured exotic flavourings with cheeky names such as Cheeky 'Cino Cappuccino,White Choc-a-Mocha Latte,Mocha Truffle Latte,Vanilla Thriller Latte and Crème Caramel Latte.At the time,the launch was considered high risk and did not enjoy a big budget.Accordingly,the marketers devised a plan which involved a limited scale launch first in the regional Victorian town of Ballarat.Only when that was successful was the brand launched in Tasmania.Over time,the brand was launched in more and larger towns and cities around the country.The purpose of this was to gauge customer reactions,minimise the company's risk exposure,spread out investment outlays and fine tune elements of the marketing mix.This practice is best described as a planned ________.

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

A new-product development approach in which one company department works individually to complete its stage of the process before passing the new product along to the next department and stage is known as ________ product development.

If the product concept passes the business test,it moves into product ________.

If sales of a product falter during the maturity phase of the PLC,a company can take several approaches.The more common ones are to modify the marketing mix,modify the product or modify the market.

GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs.The owners will begin the first idea-reducing stage,called ________,to arrive at a realistic number to pursue.

The federal government may prevent a company from adding products through acquisitions if acquisition threatens to lessen competition.

Mattel's Barbie is an example of a product with an extended life.Barbie,first launched in 1959,has undergone many incarnations.In spite of her age,Barbie is both timeless and trendy and would be said to be in the ________ stage of the PLC.

A company can obtain new products in two ways: One is through ________ and the other is through the company's own new product development process.

Explain why so many new products fail and how a company can improve its odds of new product success.