Exam 11: Developing and Managing Products

What degree of product failure results when the product returns a profit but fails to achieve sales,profit,or market share goals?

The main goal of the global product development process is to:

After products and marketing programs have been developed for new products,they are usually tested in the marketplace.What is test marketing? How may a company benefit from the use of test marketing? How can test marketing cause problems for a company?

A European dairy,which is famous for its rich ice creams,has introduced basil,tomato,fennel,and oregano flavored ice creams.Which of the following product characteristics would most likely influence the market success of these new flavors?

During the growth stage of the product life cycle:

After Mattel evaluated many new products to add to its Barbie product line and before any prototype was created,the toy manufacturer instructed a committee to select three of the ideas to present to a group of consumers.The consumer group was asked to evaluate the three product ideas in terms of their marketability.This stage of new-product development is called:

The degree to which a product can be used on a limited basis represents which product characteristic influencing the rate of adoption?

Increasing competition,aggressive brand advertising,and healthy profits are all characteristics found in the introductory stage of the product life cycle.

Central Bark is a dog day care center.When you check your dog into a Central Bark you know your pooch will be pampered.Since kennels have been boarding dogs for years,the dog day care is not really a new product.

Briefly describe a typical marketing strategy followed for the four Ps in each stage of the product life cycle.Name the stages of the product life cycle at the top of the chart.

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.Central Bark Doggie Day Care currently has 31 locations,with a new Gainesville,FL location coming soon.With the opening of competition in the form of Camp Bow Wow and others,it appears that the dog daycare product is moving into the _____ stage of the product life cycle.

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.With very few competitors and high product prices,those purchasing ultrathin computers now are probably the most venturesome consumers,also known as the _____.

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.Because buyers of fishing lures want to have the newest,most technologically improved lure,most of Rapala's customers would more than likely fall into the _____ category of adopters.

New-to-the-world products,where the product category itself is new,are also called:

When selecting a test market city,a researcher should look for a city:

The screening and concept testing stage of the new-product development process is used to:

The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.

Adaptation is the process by which the adoption of an innovation spreads.

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.

A(n)_____ typically entails showing members of the product's target market advertising and other promotional materials for several products,including the test product.These people are then taken to a mock or real store where their purchases are recorded.