Exam 11: Product Management and New-Product Development

Sales and profits usually move together over time during the product life cycle.

The cost of replacing defective parts is the biggest cost of poor quality.

In the idea generation stage of the new-product development process,______.

Simply showing customer-contact employees around the rest of the business-so that they learn how their contribution fits in the total effort-can be a key part of their training.

At one time most firms assumed defects were an inevitable part of mass production._____ firms showed that this assumption was not valid.

Competition is toughest in which of the following product life cycle stages?

When a marketing manager notices that customer reaction to a new product does not meet expectations,they need to be prepared to _____ or move to a new marketing mix.

The stage of the product life cycle characterized by informative promotion but little customer awareness of a product is ______.

The legal obligation of sellers to pay damages to individuals who are injured by defective or unsafely designed products is called ______.

When planning for the different stages of the product life cycle,managers should remember that ______.

The product life cycle describes the stages a really new product idea goes through from beginning to end.

By law,a firm may call a new product "new" for only a stipulated period of time.Such regulations are established by the ______.

A court rules that a fast-food restaurant has a legal obligation to pay damages to a family whose child was injured when it swallowed an unsafe toy that came in a kids' meal box. Such a legal obligation is called ______.

The new-product development process ______.

Kelly Drake,marketing manager for Find-Ur-Way global positioning systems,is testing the marketing mix for one of her company's new products.The product was introduced in two different markets with different prices and packages.This suggests the new product was in the _____ step of the new-product development process.

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 have continued 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. In which stage of the product life cycle is Wire Locker?