Exam 9: Developing New Products and Managing the Product Life Cycle

Although products that remain in the maturity stage of the PLC seem unchanged, the most successful ones actually evolve to meet changing consumer needs.

In a(n) ________, consumers interact with new products and marketing tactics in laboratory stores or virtual online shopping environments.

Concept testing works best with people who are familiar with the new idea and the new product's purpose. This generally includes top management, the sales force, and research and development.

According to the text, the search for new product ideas should most likely be ________.

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?

Which of the following is a significant challenge presented by the product life cycle?

Which stage of new product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?

Profits drop during the growth stage of the PLC because per customer promotion costs are high.

CellTones, a new company selling several types of cellular phones, has closely modeled its products after successful products that are already in the marketplace. As it prepares to enter the market with its new products and services, which of the following should concern CellTones the most?

An attractive product idea must be developed into a ________.

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.

Marketers can prolong the lives of many products in the maturity or decline stages of the PLC, sometimes even moving these products back into the growth stage. How is this undertaken?

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

A marketer has selected a single city in which to conduct a test market. What can be concluded from this choice of a single-city test market?

Blair Housewares wants to add new products to its existing line of products. 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.

Which figures does the company use to analyze the new product's financial attractiveness?

Which of the following would lead to greater competition in the maturity stage of the PLC?

Explain concept testing.

Using the PLC concept to develop marketing strategy can be problematic because strategy is both a cause and a result of the product's life cycle.