Question 1

Sales and profits usually move together over time during the product life cycle.

Accepted Answer

A) True 
 B)False

Question 2

The product life cycle concept is concerned with planning for product recycling to protect the environment.

Accepted Answer

A) True 
 B)False

Question 3

Use this information for questions that refer to the Wire Products Inc. (WPI) case.
Rob Rose sat back to review the portfolio of products his company, Wire Products Inc. (WPI), has in its product line. The company specializes in making various products for consumer and industrial uses from hard laminated wire -- coated with special paints.
1) WPI's "Wire Closet" products have been on the market for 10 years. Consumers install the wire shelves and closet rods themselves. The market leader, Closetmaid, has been selling similar products for more than 20 years, but so far the sales volume and profits for the market continue to grow. Recently, several new competitors have come into the market.
2) Three months ago, WPI entered the lawn and garden market with folding fences made with laminated wire and branded as "Wire Fold-Fence." Previously, WPI had never made fences or been in lawn and garden - although other companies have been making products in this market for years. However, Rob Rose has discovered that recent sales of wire garden fencing have leveled off and profits are declining overall. Still, WPI thinks it has some cost advantages and can grow its own sales and profits in this market.
3) WPI has just developed "Oil Wire," a new concept for the environmental cleanup market. Oil Wire is coated with a special material that cleans up oil spills. There has never been a product like this and WPI wants to quickly get the word out about its benefits. The product is now being rolled out in selective markets.
4) Another business product is "Wire Locker" used for secure storage by gymnasiums or companies. This style of locker has now gone out of fashion and most customers are finding better materials to use for lockers. Aggressive selling has helped Wire Locker's sales stay flat, but the total market for wire style lockers is only half of what it was 10 years ago.
5) WPI's "Wire Window" product is used as a security product to protect glass windows. It sells to homeowners and retailers looking for additional safety. WPI's sales of this product have dropped in recent years because competitors have introduced maintenance-free products. However, the overall market for this type of product continues to show good growth.
6) WPI is running concept tests of a new wire car-top carrier called "Wire Car Top." There are other car-top carrier products on the market, but WPI plans to include options in its carrier that will make it easier to load bikes, skis, and suitcases. "Wire Car Top" is also very easy to put on and take off of the car because of its light weight and ease-of-use features. The concept tests are helping WPI analysts develop rough estimates of costs, sales, and profits.
7) Another new product idea, tentatively called "Wire Tent," is being considered. It would use laminated wires to create a portable tent frame. This product is currently being evaluated to determine its fit with the company's objectives and external market trends.
Rob is thinking about the product life cycle, where each product fits, and what he should be doing as part of his marketing plan for each of these products.
-In which stage of the product life cycle is "Wire Closet"?

Accepted Answer

A)  Market development 
B)  Sales decline 
C)  Market maturity 
D)  Market introduction 
E)  Market growth 
A)  Market development 
B)  Sales decline 
C)  Market maturity 
D)  Market introduction 
E)  Market growth

Question 4

When a firm's product has won loyal customers, it can be successful for a long time-even in a mature or declining market.

Accepted Answer

A) True 
 B)False

Question 5

Regarding product life cycles, a good marketing manager knows that

Accepted Answer

A)  entirely different target markets may be involved at different stages of the product life cycle. 
B)  a product that doesn't get beyond the introduction stage is still likely to be very profitable. 
C)  industry profits are increasing well after sales start to decline. 
D)  once a market goes into sales decline, oligopoly conditions set in. 
E)  All of the above are true. 
A)  entirely different target markets may be involved at different stages of the product life cycle. 
B)  a product that doesn't get beyond the introduction stage is still likely to be very profitable. 
C)  industry profits are increasing well after sales start to decline. 
D)  once a market goes into sales decline, oligopoly conditions set in. 
E)  All of the above are true.

Question 6

Market testing can be risky because it gives information to competitors, but not testing may be even riskier.

Accepted Answer

A) True 
 B)False

Question 7

Regarding product life cycles, good marketing managers know that:

Accepted Answer

A)  any new brand must start off in the market introduction stage. 
B)  any product modification results in a new product life cycle. 
C)  product life cycles cannot be extended. 
D)  a firm's product can be withdrawn before its related product life cycle is over. 
E)  All of the above are true. 
A)  any new brand must start off in the market introduction stage. 
B)  any product modification results in a new product life cycle. 
C)  product life cycles cannot be extended. 
D)  a firm's product can be withdrawn before its related product life cycle is over. 
E)  All of the above are true.

Question 8

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

Accepted Answer

A) True 
 B)False

Question 9

A good marketing manager knows that:

Accepted Answer

A)  a fashion is the currently accepted or popular style. 
B)  the faster fashions change, the harder marketing strategy planning is. 
C)  modern technology affects the speed of fashion change. 
D)  all of the above. 
E)  none of the above. 
A)  a fashion is the currently accepted or popular style. 
B)  the faster fashions change, the harder marketing strategy planning is. 
C)  modern technology affects the speed of fashion change. 
D)  all of the above. 
E)  none of the above.

Question 10

It is still possible for a firm to earn a profit if it operates in the sales decline stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 11

The first step in new-product development is evaluating ideas.

Accepted Answer

A) True 
 B)False

Question 12

An industry with oligopolistic competition faces falling profits and its sales growth is slow. Demand for individual brands has become quite elastic--as consumers see competing products as almost homogeneous. Several firms have dropped out. What is the life cycle stage?

Accepted Answer

A)  Market maturity 
B)  Sales decline 
C)  Market growth 
D)  Market introduction 
E)  Product renewal 
A)  Market maturity 
B)  Sales decline 
C)  Market growth 
D)  Market introduction 
E)  Product renewal

Question 13

Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the ____ stage of the product life cycle.

Accepted Answer

A)  market maturity 
B)  market introduction 
C)  market growth 
D)  sales decline 
E)  market decline 
A)  market maturity 
B)  market introduction 
C)  market growth 
D)  sales decline 
E)  market decline

Question 14

High immediate satisfaction and high long-run consumer welfare is provided by:

Accepted Answer

A)  salutary products. 
B)  pleasing products. 
C)  desirable products. 
D)  deficient products. 
A)  salutary products. 
B)  pleasing products. 
C)  desirable products. 
D)  deficient products.

Question 15

During the SALES DECLINE stage of the product life cycle:

Accepted Answer

A)  firms with strong brands may make profits almost until the end. 
B)  no profits are earned. 
C)  price competition usually declines. 
D)  brand loyalty declines. 
E)  monopoly is typical. 
A)  firms with strong brands may make profits almost until the end. 
B)  no profits are earned. 
C)  price competition usually declines. 
D)  brand loyalty declines. 
E)  monopoly is typical.

Question 16

Total quality management:

Accepted Answer

A)  requires that everyone in the organization be concerned with improving quality. 
B)  means more than just using statistical controls to reduce manufacturing defects. 
C)  views the cost of lost customers as an important result of quality problems. 
D)  applies to service producers as well as manufacturers. 
E)  all of the above are correct. 
A)  requires that everyone in the organization be concerned with improving quality. 
B)  means more than just using statistical controls to reduce manufacturing defects. 
C)  views the cost of lost customers as an important result of quality problems. 
D)  applies to service producers as well as manufacturers. 
E)  all of the above are correct.

Question 17

As a product moves through its product life cycle:

Accepted Answer

A)  a firm should change its target market--but not its marketing mix. 
B)  the competitive situation moves toward monopoly. 
C)  industry profits keep increasing along with industry sales. 
D)  customers' needs and attitudes may change. 
E)  All of the above are true. 
A)  a firm should change its target market--but not its marketing mix. 
B)  the competitive situation moves toward monopoly. 
C)  industry profits keep increasing along with industry sales. 
D)  customers' needs and attitudes may change. 
E)  All of the above are true.

Question 18

As a product moves into the market maturity stage of its life cycle, the marketing manager should:

Accepted Answer

A)  try to build primary demand. 
B)  move toward exclusive distribution. 
C)  expect the market to move toward pure competition. 
D)  All of the above are true. 
E)  None of the above is true. 
A)  try to build primary demand. 
B)  move toward exclusive distribution. 
C)  expect the market to move toward pure competition. 
D)  All of the above are true. 
E)  None of the above is true.

Question 19

Total quality management can be used to improve any implementation effort.

Accepted Answer

A) True 
 B)False

Question 20

A marketing manager might use the total quality management approach to:

Accepted Answer

A)  reduce defects in goods produced in factories. 
B)  train better salespeople. 
C)  improve customer service. 
D)  make delivery schedules more reliable. 
E)  all of the above. 
A)  reduce defects in goods produced in factories. 
B)  train better salespeople. 
C)  improve customer service. 
D)  make delivery schedules more reliable. 
E)  all of the above.

Exam 10: Product Management and New-Product Development

Sales and profits usually move together over time during the product life cycle.

The product life cycle concept is concerned with planning for product recycling to protect the environment.

When a firm's product has won loyal customers, it can be successful for a long time-even in a mature or declining market.

Regarding product life cycles, a good marketing manager knows that

Market testing can be risky because it gives information to competitors, but not testing may be even riskier.

Regarding product life cycles, good marketing managers know that:

The market introduction stage of the product life cycle is usually marked by losses, as money is being invested in the hope of future profits.

A good marketing manager knows that:

It is still possible for a firm to earn a profit if it operates in the sales decline stage of the product life cycle.

The first step in new-product development is evaluating ideas.

An industry with oligopolistic competition faces falling profits and its sales growth is slow. Demand for individual brands has become quite elastic--as consumers see competing products as almost homogeneous. Several firms have dropped out. What is the life cycle stage?

Health Care Products Company has noticed that in one of its product-markets industry sales have leveled off and competition has been getting tougher. This product-market appears to be in the ____ stage of the product life cycle.

High immediate satisfaction and high long-run consumer welfare is provided by:

During the SALES DECLINE stage of the product life cycle:

Total quality management:

As a product moves through its product life cycle:

As a product moves into the market maturity stage of its life cycle, the marketing manager should:

Total quality management can be used to improve any implementation effort.

A marketing manager might use the total quality management approach to:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers,wholesalers,and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

Managing Marketings Link With Other Functional Areas

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Marketing Arithmetic

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