Exam 9: Developing and Managing Products

The Sumatra Coffee Company has two new products.One is a simple hand-cranked coffee grinder.The other is a combination grinder and brewer that also can be used to dispense hot milk.Of these two,the hand-cranked grinder will probably be diffused more quickly because it is less complex.

The rate of sales decline during the decline stage of the product life cycle is largely governed by which of the following?

Name and describe four categories of new products.

Which of the following is a type of scientific investigation aimed at discovering new technologies?

What happens toward the end of the growth stage of the product life cycle?

What is the final stage in the new-product development process? What tasks are set in motion during this stage?

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 scenario outlines the stages of development of the market for phonograph albums.What is the name for this group of stages?

What is one way to determine whether a company has a balanced portfolio of products and,if not,what new product ideas are needed to offset the imbalance?

You are a product manager for a manufacturer of detergent.You have determined that detergent is in the mature stage of the product life cycle.To keep your product from entering the decline stage,what should you do?

The development stage of the new-product development process works best when which of the following is practised?

Which of the following evaluate new product ideas usually before any prototype has been created?

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 friends who encouraged him to put his ideas in a book were involved in which of the following?

What is the phase of the product life cycle in which healthy profits usually begin to appear?

Which of the following are eager to try new ideas and products,typically have higher incomes,are better educated,and are more cosmopolitan than other categories of adopters?

What is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation?

When choosing a test market,managers need to consider many criteria for a good test market city.List six criteria.

What does a new-product strategy do?

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.As a global marketer,Rapala uses a one product-one message strategy.What does this mean?

Scientists at University of Toronto have received a patent for their newly discovered technologies for more effective customer interface interactions in retail stores.The university decided to sell the patent to an independent company whose scientists immediately began exploration into practical uses of this new technology.What are the scientists at the independent company involved in?

Reginald was happily jogging up the street in his florescent green jogging shorts while listening to his favourite cassette,"The Best of Anne Murray," in his Sony Walkman.Seeing a bus go by with a sign that claimed "iPhone is THE way," Reginald snorted,"That'll be the day." Reginald belongs to which adopter group?