Exam 10: Developing and Managing Products

B.F.Goodrich has been manufacturing and marketing automotive tires for over 100 years.It spends much of its marketing budget on short-term promotions aimed at stealing market share from Goodyear,Dunlap,and other tire manufacturers.From this information,in which stage of their product life cycle are tires?

The two techniques that are considered most useful for generating new-product ideas are customer generation and competitive imitation.

What can the marketers of consumer products expect to find when they study and apply the product life cycle theory to their products?

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 scenario outlines the stages of development of the market for phonograph albums.What is the name for this group of stages?

In the adopter categories,the final 16 percent to adopt are similar to innovators in that they do not rely on the norms of the group but are independent because they are tradition-bound.They tend to have the lowest socioeconomic status,are suspicious of new products,and are alienated from a rapidly advancing society.What are they called?

At what stage of the new-product development process are most new-product ideas rejected?

Sara Lee,the maker of Ball Park hot dogs,has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program.What is Sara Lee going to use?

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

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.com for $5.95. -Refer to Amusement Park Games.Since,with the use of Richardson's book,most people can win arcade games and carry home as many stuffed animals as their arms can hold,what would carnival operators hope for?

In its early years of operation,MGP Ingredients,Inc. ,sold ethanol and animal feed.A steep drop in its sales led the company to focus on developing the first low-carb wheat proteins and starches.What would these low-carb products be an example of?

During which stage of new-product development are preliminary demand,cost,sales,and profitability estimates made?

Which type of test typically entails showing members of the product's target market advertising and other promotional materials for several products,including the test product,then taking these people to a mock or real store where their purchases are recorded?

Test marketing may result in a serious problem if a firm's competitors find out about the new product before it has been fully introduced.

Parris Laboratories has ordered production materials and equipment needed to make its new slow-release chlorine emulsion for swimming pools in its Rossville plant.Which stage of new product development is Parris Laboratories entering?

Procter & Gamble is introducing a new controlled-release fabric softener sheet and plans to send consumers free samples in Saturday newspapers.This strategy will increase the trialability of the new product.

When the manufacturer of L'Oreal shampoo introduced shampoos designed specifically to appeal to preteens,which of the following best describes the product?