Exam 11: Developing and Managing Products

In the long run, products fail because of a poor match between which of the following?

Scenario 11-3 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 the scenario. The phonograph record industry is currently in what stage of the product life cycle?

Noam Finkelstein has recently introduced a limited run of his new book in a suburb of Toronto to determine the reactions of potential readers. What is this also known as?

Among the late majority group, from what does adoption of a product primarily result?

Because Laurence did not know companies sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident, he paid almost $4,000 to have his dog's broken hip replaced. Once he discovered such a product existed, how did he perceive the insurance?

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.

During the growth stage of the product life cycle which of the following happens?

Scenario 11-3 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 the scenario. The market for record albums in the 1930s suggests phonograph records were in which stage of the product life cycle at that time?

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants. In a meeting with Canesta corporate officials, you (a leading marketing consultant) are asked if the new virtual keyboard will be quickly accepted by consumers. You tell them this depends on many product characteristics. Which of the following is NOT one of those characteristics?

According to the text, what should be used to determine whether a company has a balanced portfolio of products and, if not, what new-product ideas are needed to offset the imbalance?

Which tests evaluate new-product ideas usually before any prototype has been created?

Name and describe four categories of new products.

The Sumatra Coffee Company has two new products. One is a simple hand-cranked coffee grinder. The other is a combination grinder and brewer that also can be used to dispense hot milk. Of these two, the hand-cranked grinder will probably be diffused more quickly because it is less complex.

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?

Which of the following products is most likely to be in the decline stage of its product life cycle?

What links the new-product development process with the objectives of the marketing department, business unit, and corporation?

What typically happens at the beginning of the maturity stage of the product life cycle?

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

Scenario 11-2 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 the scenario. The Jabra 1000 described above is what type of new product?

There are five product characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product. Name and briefly describe four of these characteristics. State the impact of the characteristic on diffusion.