Exam 10: Developing and Managing Products

While developing new products is far from an exact science,most firms follow a formal new-product development process.

Who embrace products relatively early in the product life cycle,are likely to be community oriented,and often are opinion leaders themselves?

What is the purpose of the screening and concept testing stage of the new-product development process?

A firm's new-product strategy links the new-product development process with the objectives of the marketing departments,the business unit,and the corporation.

What is the rate of sales decline during the decline stage of the product life cycle largely governed by?

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329. -Refer to Jabra Corporation.When the first Jabra 1000 was sold,the initial sale signalled the start of which stage of the product life cycle?

Draw the sales line and the profit line of the product life cycle in the following diagram,and label each line.Then indicate the names of the four stages of the product life cycle in the blanks provided.

When selecting a test market city,what should a researcher look for?

Oakley,a manufacturer of protective eyewear for various kinds of sports,has introduced sunglasses that play music.The glasses weigh a little over a pound and can hold up to 120 songs.What are these sunglasses an example of?

List the four stages of the product life cycle.List four typical characteristics for each stage.

What is the main goal of the global product development process?

When General Mills changed the formula for its Oatmeal Crisp cereal,it added ingredients to reduce the risk of high blood pressure,to lower cholesterol,and to reduce the risk of stroke,thus providing greater value to the consumer.Since it was not trying to reach a new target market,which new product strategy was General Mills using?

Market researchers have determined nine categories of lifestyles for computer users.One of the categories is described as "Fast Forwards," who eagerly purchase brand new technology for home,office,and personal use.This group is most likely to adopt new technology when it is in which stage of its product life cycle?

What are patio furniture,lighting fixtures,microwave ovens,canned corn,and athletic shoes all examples of?

In the early 1900s,a new product was developed-the phonograph record.It allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Digital downloading of songs from online stores like iTunes has become the norm.Today,most stores no longer carry records,which have become a niche product. -Refer to Music Industry.The phonograph record industry is currently in what stage of the product life cycle?

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329. -Refer to Jabra Corporation.The Jabra 1000 is similar to the earbud system in an iPod,which may increase adoption rates.This suggests that the rate of diffusion might be affected by which of the following?

During which stage of the product life cycle do healthy profits usually begin to appear?

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created,the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers.The consumer group was asked to evaluate the three product ideas in terms of their marketability.What is this stage of new-product development called?

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

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 2003.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 VMC Corporation.What will the "dream lure for the 21st century" more than likely be an example of?