Exam 12: Developing and Managing Products

There is no best approach to managing products.

Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development.

____ and ____ are important characteristics of quality for consumer markets, and ____ and ____ are important characteristics of quality for business markets.

One disadvantage of test marketing a new product is that

Quality modification of an existing product aims at changing the product's safety, convenience, or versatility.

Kara is a member of the product development team at a company that manufactures sports equipment. During a recent meeting, one of the team members asked "What level of quality are we building into the camping gear?" Based on this question, Kara and her team are most likely in the ____ phase of new-product development.

The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification.

To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when

Patrick is a member of a consumer marketing panel and has been introduced to a company's new idea for energy drinks. Some of the questions he has been asked are "How often would you buy this product?" and "Which features are of little or no interest to you?" Patrick is most likely participating in the ___ phase of the new-product development process.

If Splenda decides its "Splenda with Vitamins" is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) ____ deletion strategy.

The dropping approach to product deletion generates a sales spurt just before removing the product from the market.

To manage products effectively, the product manager must be independent of other departments.

Test marketing should be conducted when a product has been given a low probability of success.

The phase-out approach to product deletion exploits any strengths left in the product.

Identify and describe the three major ways to modify existing products, and give an example of each.

Sony's design of its new large-screen television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) ____ modification; changes to make the TV's remote easier to use would be classified as a(an) ___.

List and discuss the major phases of the new-product development process.

If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of ____ manager.

Functional modifications usually require that the product be redesigned.