Exam 9: Developing and Managing Products

What occurs when an existing product is targeted toward new market segments?

In the early 1900s,a new product was developed-the phonograph record,and it allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Today,most stores no longer carry records,which have become a niche product,and digital audiotapes are a new alternative. -Refer to Music Industry.The time from the 1940s through the 1960s corresponds to which stage of the product life cycle for phonograph records?

Laptop computers,pet food,cake mixes,DVDs,and recreational vehicles are examples of what?

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.What is this stage of new-product development?

What is a process where a group thinks of as many ways as possible to vary a product or solve a problem without considering the practicality of the ideas?

Finland-based Rapala VMC Corp.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 2003.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 2003,Rapala unveiled the "dream lure for the 21st 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?

When Sherwin Williams began selling Martha Stewart-designed paints,what could the approach be classified as?

Market researchers have determined nine categories of lifestyles for computer users. -Refer to Lifestyle Categories.One of the categories is described as "Hand-Shakers," who are typically managers who do not possess any computer skills but rather allow their assistants to provide all necessary technological knowledge.In terms of the diffusion process,"Hand-Shakers" would most likely be classified as which of the following for office technology?

Top managers at a company that publishes regional magazines considered making maps,but then decided maps were not within the company's corporate mission.Which stage of the new-product development process did its new-product development process reach?

Which of the following products has the lowest level of trialability?

Which of the following sources is a source for new product ideas?

The maker of Lysol disinfectant tested consumers' reactions to the company's Lysol 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 cleaning product.What is this an example of?

Until the mid-1990s,MGP Ingredients sold ethanol and animal feed.A steep drop in its sales led the company to focus on developing the first low-carb proteins and starches.The company was able to use existing manufacturing equipment to develop these food additives in response to the growing popularity of the Atkins Diet and similar food regimens.The realization that MGP could use the popularity of the Atkins Diet as a catalyst for success would have occurred in which stage of the new-product development process?

A firm's new-product strategy links the new-product development process with the objectives of the marketing departments,the business unit,and the corporation.

Walker Zanger is about to introduce a new type of ceramic tile that is scratch-resistant and unbreakable.As with other products of this type,Walker Zanger can expect sales of this new type of flooring to follow a bell-shaped curve over the next 10 to 15 years as it follows the product life cycle.

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.ca for $5.95. -Refer to Amusement Park Games.Since with the use of Richardson's book,most people can win arcade games and carry home as many stuffed animals as their arms can hold,it would seem likely that carnival operators would hope for which of the following?

Christian Kniski has developed a new technology that uses miniature computerization to analyze DNA specimens.His next step after developing the product should be to work to find an application for this new technology through which of the following?

The product life cycle is so named because it is similar to the premise underlying the concept of any life cycle.The unit of interest is born,it grows for some time,and it reaches some level of maturity and stability before dying.

A company finds out that members of its target market are likely to collect more information and evaluate more brands than early adopters.These people are cautious and thoughtful and do not try the product without asking someone else.The customers' dominant characteristic is deliberateness.In terms of the diffusion process,these customers are most likely in which group?

What goes one step further than applied research by converting new technology applications into marketable products?