Exam 12: Developing and Managing Products

A run-out policy of product deletion

Automobile makers rely heavily on aesthetic modifications.

Brand and product managers operate cross-functionally.

Which of the following is the stage of the new-product development process where customers are first exposed to the new product idea?

Scenario 12.1 Use the following to answer the questions.Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013.About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. -Refer to Scenario 12.1. In 2012, Cheetos was in which phase of new-product development?

Your company is preparing to launch a new product next month. Since you are leading the launch effort, you called a meeting of all stakeholders to discuss how the product should be positioned in the market. You acknowledge that the product will carry a higher price than competing products, but all the independent rating agencies have concluded that the product has superior performance characteristics relative to its competing brands.​ ​ Which of the following bases for positioning should you use for this product?

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.

The major drawback to using aesthetic modifications is

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is called product quality.

Sales personnel are an external source for new product ideas.

What is concept testing, and why is it important?

If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following basis for positioning the new product?​

Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.

Scenario 12.1 Use the following to answer the questions.Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013.About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. -Refer to Scenario 12.1. Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club. This would be an example of a(n)

Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the ____ phase of new-product development.

If Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats, Inc., was in the process of test marketing a new line of shallow-water fishing boats in the southeast region, he might want to engage in ____ to reduce the validity of the other firm's results.

Product design is the process of creating and designing products so that consumers perceive them as different from competing products.

Product deletion can best be described as the process of deleting a product from the product mix when it

Scenario 12.2 Use the following to answer the questions.Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear, however this product is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. -Refer to Scenario 12.2. Because some products are not doing well, Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be discontinued. He is suggesting a