Exam 9: Product Management and New-Product Development

Relative to most other countries, the U.S. has very strict product liability standards.

A fad cycle is shorter than a fashion cycle.

It is always in the best interest of the market pioneer for competitors to stay out of the market.

When new product ideas are chosen based on ratings and comments from customers, this process is called ______.

According to the FTC, for a producer to call a product "new," the product:

Chris Carmine manages specific products and promotion at Bright-n-Shiny Toothbrush Company. Her job responsibility sounds like that of a ________.

According to the Federal Trade Commission (FTC), a new product:

A good marketing manager knows that:

Which stage of the product life cycle is the largest profit stage for companies?

According to the text, a "new product" is one that is:

The big cost of poor quality is the cost of

Identify the incorrect statement pertaining to the stages of the product life cycle.

____ refers to a commitment to constantly make things better one step at a time.

Use this information for question that refer to the Wire Products Inc. (WPI) case. Rob Rose sat back to review the portfolio of products his company, Wire Products Inc. (WPI), has in its product line. The company specializes in making various products for consumer and industrial uses from hard laminated wire-coated with special paints. 1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers install the wire shelves and closet rods themselves. The market leader, Closetmaid, has been selling similar products for more than 20 years, but so far the sales volume and profits for the market continue to grow. Recently, several new competitors have come into the market. 2) Three months ago, WPI entered the lawn and garden market with folding fences made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had never made fences or been a player in the lawn and garden market-although other companies have been making products in this market for years. However, Rob Rose has discovered that recent sales of wire garden fencing have leveled off and profits are declining overall. Still, WPI thinks it has some cost advantages and can grow its own sales and profits in this market. 3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup market. Oil Wire is coated with a special material that cleans up oil spills. There has never been a product like this and WPI wants to quickly get the word out about its benefits. The product is now being rolled out in selective markets. 4) Another business product is "Wire Locker" used for secure storage by gymnasiums or companies. This style of locker has now gone out of fashion and most customers are finding better materials to use for lockers. Aggressive selling has helped Wire Locker's sales stay flat, but the total market for wire style lockers is only half of what it was 10 years ago. 5) WPI's "Wire Window" product is used as a security product to protect glass windows. It sells to homeowners and retailers looking for additional safety. WPI's sales of this product have dropped in recent years because competitors have introduced maintenance-free products. However, the overall market for this type of product continues to show good growth. 6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top." There are other car-top carrier products on the market, but WPI plans to include options in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is also very easy to put on and take off of the car because of its light weight and ease-of-use features. The concept tests are helping WPI analysts develop rough estimates of costs, sales, and profits. 7) Another new product idea, tentatively called "Wire Tent," is being considered. It would use laminated wires to create a portable tent frame. This product is currently being evaluated to determine its fit with the company's objectives and external market trends. Rob is thinking about the product life cycle, where each product fits, and what he should be doing as part of his marketing plan for each of these products. Is it a good idea for a company like WPI to have several product managers?

Building quality into services:

During the sales decline stage

"Continuous improvement" means a commitment to constantly make things better-one step at a time.

During the sales decline stage of the product life cycle:

A manager shouldn't worry about making a financial return from money spent on a quality program as long as customers recognize that the quality is high.

In its efforts to support new-product development ideas within its own company, Google allows its employees to spend _______ percent of their time each week thinking about new product ideas, even if the ideas are not related to the employees' specific jobs.