Exam 9: Developing and Managing Products

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.Record companies spent a lot of money on product information advertising in the 1920s to educate the public about the new technology.This is a characteristic of which stage of the product life cycle?

What three ways can test marketing cause problems for a company? What are two alternatives that can be used instead of traditional test marketing?

A company that manufactures mantels,stairways,doors,windows,and other architectural reproductions brought together a group of 10 recent customers and asked them to discuss what they liked and disliked about the current designs marketed by the company.Which of the following research techniques did the manufacturer use?

As the marketing vice president for Vizard Garden Accessories,you must come up with new product ideas for the manufacturer of garden gazebos,trellises,benches,and tables.What are five important sources of new product ideas? What are some techniques you could use to stimulate creative thinking for new product 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.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 which category of adopters?

Reynolds,the manufacturer of aluminum foil,developed plastic wrap in an array of different festive colours.This is an example of a new product.

Typically,at the beginning of the maturity stage of the product life cycle,what happens to sales?

A test market is one example of a laboratory test where consumers are encouraged to try a new product and provide feedback to the manufacturer.

What is the main goal of the global product development process?

A hospital created a focus group to identify new products that it believed would enhance the boomers' aging process.This focus group most likely contained which of the following?

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 ear-bud phone.The entire device fits in your ear.Jabra's transmitter picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the ear-bud phone lists for $329. -Refer to Jabra Corporation.When the first Jabra 1000 was sold,the initial sale signalled the start of which stage of the product life cycle?

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 ear-bud phone.The entire device fits in your ear.Jabra's transmitter picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the ear-bud phone lists for $329. -Refer to Jabra Corporation.The Jabra 1000 is technically advanced and somewhat difficult for people to understand.Thus,what may affect the rate of diffusion?

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

The two techniques that are considered most useful for generating new-product ideas are customer generation and competitive imitation.

Steve Legado designs software for the medical profession.He thinks that the market for his product is reaching saturation.This would imply that Legado's product is in the growth stage of its product life cycle.

One manufacturer produces Hanes,Playtex,and Bali clothing for women.This manufacturer assembled a group of nine regular customers and asked them to discuss what they like and do not like about its current product line for full-figured women and to suggest new product ideas,such as jewellery,shoes,and belts.Which research technique was the manufacturer using?

Among the late majority group,what does adoption of a product primarily result from?

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device. -Refer to Virtual Keyboard.In a meeting with Canesta corporate officials,you (a leading marketing consultant)are asked if the new virtual keyboard will be quickly accepted by the Canadian consumer.You tell them that this depends on many product characteristics-as a matter of fact,all of the following EXCEPT which one?

Canesta has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants.The product beams an image of a keyboard on a desk,allowing the user to type on the image.The words are picked up by the user's digital device. -Refer to Virtual Keyboard.During which stage of its new-product development process would a group have been assigned the task of estimating preliminary demand for the product,costs,sales,and future profitability?

Landingham Laboratories has decided to introduce its new over-the-counter antibiotic for ear infections in a limited market consisting of only two cities,and to closely monitor the reactions of potential customers to the product and its marketing program.What is this called?