Exam 11: Developing and Managing Products

Most new-product ideas are rejected at the idea generation stage.

The same manufacturer produces Hanes,Playtex,and Bali clothing for women.This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new-product ideas,such as jewelry,wide shoes,and belts.The manufacturer used a research technique called a:

One benefit of test marketing is that the marketing activity is shielded from competitors.

_____ is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.

Jim didn't buy a netbook computer when they first came out,but he did purchase one a year after they were introduced into the market. He is very active in his church and local arts council,and many of his friends asked him which brand to buy when they were considering purchasing a netbook. Jim is best described as a(n):

A brand of iced tea,called Gold Peak,has high marketing costs as well as high production costs.Promotions for the product are aimed at gaining distribution and informing consumers that this premium product tastes like it's home-brewed.In which stage of the product life cycle is Gold Peak iced tea?

Razor scooters gained instant popularity because walkers and runners frequently saw people on the scooters zipping by them and having fun.This information suggests the adoption rate of the Razor scooter was most affected by which product characteristic?

Middleton has developed the Flybar 1200,an extreme pogo stick that propels users more than five feet into the air.During the _____ stage of its new-product development process,a group was assigned the task of estimating preliminary demand for the product,costs (including issues with liability),sales,and future profitability.

Top managers at a commercial real estate firm that specializes in site location and installation of cellphone towers considered providing the same service for windmill location and installation but decided this was not within the company's corporate mission.Which stage of the new-product development process did its new-product development process reach?

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.Two advantages the Voodoo Envy has over the MacBook Air are removable batteries and an Ethernet port.In other words,since the Voodoo Envy has these features that are consistent with full size laptops,in terms of the adoption process,it has the advantage of _____.

Which category of adopters adopt a new product because most of their friends have already adopted it?

Which product characteristic affecting the rate of adoption represents the degree to which the new product is consistent with existing values and product knowledge,past experiences,and current needs?

Consumers described as laggards tend to rely on group norms when deciding to adopt an innovation.

Marketers consider all of the following examples of new products EXCEPT:

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 company marketing the Fitbit does not currently market a product like this. Which of the following best represents the category of new product the Fitbit is for this company?

Biopure Corp.is developing a human blood substitute called Hemopure. Unlike like donated human blood that needs to be refrigerated and expires after a short period of time,Hemopure is shelf-stable and can be stored for two years or more. It does not need to be matched to a person's blood type like donated blood does. These factors make it well-suited for trauma cases where blood must be transfused at an accident site or on the battlefield. Which product characteristic influencing the rate of adoption does this represent?

The process by which the adoption of an innovation spreads is referred to as:

Discuss five sources of new-product ideas.What are some techniques could be used to stimulate creative thinking for new-product ideas?

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.After the trade show,the newest lure made by Rapala will enter which stage of the new-product development process?

Name and describe the six categories of new products.