Exam 11: Developing and Managing Products

Draw the sales line and the profit line of the product life cycle in the following diagram,and label each line.Then indicate the names of the four stages of the product life cycle in the blanks provided.

Going to the Dogs Demand for pet services is greatly increasing across the United States. In fact, Americans will spend nearly $44 billion dollars on their pets this year. Many American dog owners are seeking out "doggy daycares" that are more like a resort or spa than an ordinary kennel for their canine companion. Daycare services for dogs now include toy rooms, outside play areas, doggie massages, treadmills, swimming pools and cushy beds for nap time. Pet owners can watch their pets via a Web cam and some doggy daycares have a phone where owners can talk to their dog when they feel their pet needs to hear their voice. Rates vary from $20 to $45 a day per pet, depending on the amenities that the pet owner chooses. -Refer to Going to the Dogs.The doggy daycare center is more like a dog resort than a dog kennel.A dog daycare represents what type of new product?

Voodoo Envy Hewlett-Packard is the number one seller of personal computers worldwide.  The company has been increasingly more creative in their computer designs following the trend set by Apple Inc. Hewlett-Packard has created a ultra thin laptop called the Voodoo Envy.  The laptop is less than a half inch thick and weights less than 3 1/2 pounds.  It is priced at $2000.  HP created the laptop to compete against Apple's MacBook Air and a model created by the Lenovo Group Ltd.  Both these models were priced at around $3000.   The MacBook Air does not have removable batteries or a built-in socket for plugging into Ethernet networks.   HP's Voodoo envy does have removable batteries and offers an Ethernet port that is part of its power adapter.   The Voodoo can also be booted up in less than five seconds made possible by software developed by HP. -Refer to Voodoo Envy.The price of the Voodoo Envy is expected to be approximately $2,000.According to Forrester Research,anything above $1,500 in this market would be considered "ultra expensive." In order to motivate consumers to spend $2,000 for the Voodoo Envy,HP will probably need to spend considerable money on advertising to educate consumers to the advantages of ultrathin laptops.This is a characteristic of which stage of the product life cycle?

In which stage of the product life cycle do marginal competitors start dropping out of the market?

Rapala VMC Corporation 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 2008. 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 21?? century." -Refer to Rapala.The degree to which the newest lures are perceived as superior to earlier models refers to their _____,a characteristic used to predict the rate of adoption.

Fitbit The pedometer is getting kicked up a notch with the new Fitbit device. The Fitbit is a $99 motion-detecting sensing device that can measure the user's activity even when asleep. It digitally records the distance a user walks or runs, right down to the number of steps, and calories burned. The device wirelessly sends data to its Web site, fitbit.com, giving users minute-by-minute details. Users can add consumption information at the Web site, allowing an accurate picture of calorie consumption and expenditures. Unlike other devices, like the Nike + iPod Sport Kit that monitors walking and running and sells for $29 or the Zeo Personal Sleep Coach that records brainwaves while the user is sleeping and sells for $399, the Fitbit combines both functions. The first-time Fitbit setup isn't very easy for users, but once over that hurdle, it's relative easy to use. -Refer to Fitbit. The idea for the Fitbit was generated from an employee retreat in which everyone was encouraged to think of unlimited product ideas for the fitness-minded consumer. Participants did not critique any of the ideas as the goal at that point was just to generate ideas. What idea-generating technique does this illustrate?

The marketing manager for a company that manufactures pet foods wants to base the marketing strategy she implements for the company's products on the product life cycle stages.In order to do this,she should:

A product must be a discontinuous innovation to be considered a "new" product.

The maker of Purell hand sanitizer tested consumers' reactions to its Purell Sanitizing Wipes by getting consumers to look through a newspaper with grocery store ads,make out a grocery list,and then "shop" in a mock store filled with real products,including the new product.This is an example of a(n):

The product characteristic affecting the rate of adoption characterized by the degree to which a product is perceived as superior to existing substitutes is:

A(n)_____ links the new-product development process with the objectives of the marketing department,business unit,and corporation.

The process by which the adoption of 3-D high-definition televisions spreads is an example of:

Sony has developed a wireless speaker that sits unobtrusively on a desktop.The tiny,yet strong twin speakers use Bluetooth to stream music directly from your PC or MP3 player.This small Sony wireless speaker,which is radically different from anything currently on the market,would be classified as a(n):

Rapala VMC Corporation 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 2008. 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 21?? century." -Refer to Rapala.The testing of new lures by tournament professionals and fishing guides would take place in which stage of new-product development?

Which is the last adopter category to adopt an innovation?

A team-oriented approach to new-product development is referred to as:

One advantage for being first on the market with a new product is more resale opportunities.

Victorinex has long manufactured Swiss Army knives and developed a line of upscale Swiss Army watches.The Swiss Army brand gave the company credibility over other watch manufacturers and allowed the company to continue targeting sports-minded males between the ages of 18 and 35.Victorinex used which strategy to create new products?

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

After successful business analysis of a new product,the development stage begins.Describe the development process and explain the difference between laboratory testing and use testing.