Exam 9: Product Management and New-Product Development

In general, product life cycles appear to be getting longer in recent years.

New-product development usually fits into the old routines of a firm, so it is not necessary for top management to support new-product development in any special way.

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.

The stage of the product life cycle in which competitors are most likely to introduce product improvements is the market growth stage.

When moving into the market maturity stage of the product life cycle, a firm might be able to obtain a competitive advantage:

It is easy for marketing managers to predict how long a product or brand will stay in each stage of the product life cycle.

Variations on an existing product idea can make a product new.

Analyzing customer comments and other companies to find new product concepts is carried out during which step of the new-product development process?

Which of the following activities is NOT typical of the commercialization stage?

New-product specialists at Whirlpool buy washing machines made by other firms and take them apart to look for new ideas. This is called

During the sales decline stage

The last step in the new-product development process is:

____ refers to a commitment to constantly make things better one step at a time.

The strategies for all stages of the product life cycle should be growth strategies.

During the development step of new product development, a firm could develop a ____, an early sample or model built to test a concept.

Sales growth is faster when a new product is easy to use and its advantages are easy to communicate.

Getting reactions from customers about how well a new-product idea fits their needs is

In the market introduction stage, sales are low as a new idea is first introduced to a market.

When looking for new product ideas, which of the following would be good sources?

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 a player in the lawn and garden market-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 Locker"?