Exam 9: Developing and Managing Products

Because Laurence did not know companies sold pet insurance so that owners could pay for operations on their pets in the event of a sickness or accident,he paid almost $4,000 to have his dog's broken hip replaced.Once he discovered that such a product existed,what did he perceive the insurance to be?

Ortho Products would like to estimate the length of time that its new product,the Sonar Brush (cleans teeth without touching them),will stay in the introductory phase of its product life cycle.What do you tell management?

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

When does absolute failure occur?

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.In terms of the new-product development process,Richardson's several unsuccessful attempts to put his thoughts on paper are an example of which of the following?

What is the most important factor in a successful new-product introduction? What are three reasons that products fail? Identify five characteristics of firms that typically experience success in new-product introductions.

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.Because the benefits of reading the book and employing its techniques are obvious to anyone who has ever attended a carnival,The Secrets of Amusement Park Games-Revealed can be said to exhibit which product characteristic?

Zippy Construction Ltd.has been experiencing extremely tough competition in recent months for its specialty housing components.Fred Farkle,President of Zippy Construction,was reading the latest industry statistics on overall sales of specialty components and noted that revenues had plateaued.It is likely that Mr.Farkle was facing which stage of the product life cycle?

A long-run drop in sales signals the beginning of which stage in the product life cycle?

Describe the screening stage of the new-product development process.Describe a common test used during the screening stage.

According to the text,which of the following statements about the product life cycle is true?

What is the first filter in the new-product development process that serves to eliminate new product ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason?

A recording company that is introducing audio versions of early television comedies has decided to offer clips of the recordings at its website.This plan will increase the trialability of the new product.

The product life cycle concept encourages marketing managers to act reactively.

Canada Post has developed a personalized photo stamp that customers can create and use to mail letters.Canada Post has already performed screening,development,and testing.Assuming the results coincide with profit and cost expectations,the most likely next step is commercialization.

When a consumer makes a trial purchase of a new product,what does he or she become in the new-product adoption-stage process?

There are five product characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product.Name and briefly describe four of these characteristics.

For a firm that adheres to the marketing concept,the logical place to start generating new-product ideas is with the customers of the firm.

Sara Lee,the maker of Ball Park sausages,has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program.What is Sara Lee using?

Firebrand Technologies has been researching and developing a revolutionary product in its company labs for the past five years.The company has just finished developing a cigarette that is smokeless and contains no nicotine.Firebrand is looking forward to a very profitable product launch.What stage of the product life cycle is the company in?