Deck 15: Implementation of the Strategic Plan

Question 1

The conditions during the beachhead phase of a launch cycle are highly conducive to good management.

Answer 1

False

Question 2

Training of sales and other promotional people, building service capability, putting out preannouncements if they are in order, and arranging for stocking of a new product at the reseller level takes place during the _____ of a launch cycle.

A) announcement stage
B) prelaunch stage
C) early growth stage
D) late growth stage

Answer 2

B

Question 3

Selective distribution is typically used for products with low relative advantage and low compatibility with buyers' experiences.

Answer 3

False

Question 4

In a penetration price strategy, the price of a product is clearly low and is designed to buy one's way into the market.

Question 5

If product sales are dependent on sales of complementary products, _____ exists.

A) virtual network externalities
B) explicit network externalities
C) social network externalities
D) indirect network externalities

Question 6

Skim is a very low price, intended to stay that way, with no clear product differentiation.

Question 7

For products with low relative advantage and low compatibility with buyers' experiences, promotion should aid in risk reduction by offering money-back guarantees, warranties, or tie-ins to existing products.

Question 8

Five Works Inc. preannounces the release of its computer software, but the product is never launched in the market. This is an example of _____.

A) a market rollout
B) vaporware
C) stocklifting
D) a lean launch

Question 9

A customer-based sales organization requires more of the hard-sell pushing that product-based sales forces can provide.

Question 10

The launch cycle of a new product typically begins with the beachhead phase.
FALSE

Question 11

In the context of launching a new product, proficient implementation of launch tactics is related to improved new product performance.

Question 12

Before the commercialization of a new product, the sales force of Seriv Corporation plans to give its suppliers a hint that a new product or an advanced version of an existing product is going to be launched by the end of the year. The firm's action can be seen as an example of _____.

A) signaling
B) corporate espionage
C) beachheading
D) whistleblowing

Question 13

Preannouncement of an upcoming product can be used to block a competitive entry.

Question 14

Indirect network externalities exist if product sales are dependent on the number of people that have adopted it.

Question 15

When a new product launch involves a defensive addition, the appropriate tactics include a broad product assortment, a new brand name and distribution channels, and a higher price.

Question 16

A key requirement for a new product trial is that it must have some cost associated with it for the firm.

Question 17

In a product launch setting, beachhead refers to the heavy expenditures necessary to overcome sales inertia.

Question 18

The trial phase in the adoption of new products is the stumbling point for most products that fail; and it is the cause of winning products not winning a great deal more.

Question 19

In most cases, repeat purchase is the last step toward adoption of a new product.

Question 20

A launch cycle is an expansion of the _____ of the product life cycle into substages.

A) maturity stage
B) introductory stage
C) growth stage
D) evaluation stage

Question 21

For products with high relative advantage and low compatibility with buyers' experiences:

A) narrow product assortments may be useful.
B) risk-based promotions will be necessary.
C) preannouncements before entry may be necessary to warn prospects.
D) intensive product distribution makes sense.

Question 22

In the context of a lean launch of a product, which of the following best describes form postponement?

A) Deploying inventory as late as possible
B) Ramping up manufacturing as late as possible
C) Locking in product design as late as possible
D) Delaying the announcement of a new product as long as possible

Question 23

_____ is the term most widely used to cover all of the information and attitude effort put into changing end-user perceptions.

A) Beachhead
B) Vaporware
C) Communications
D) Rollout

Question 24

A(n) _____ is the workhorse of most new product introductions.

A) salesperson
B) internal auditor
C) creditor
D) advertising person

Question 25

When technical departments in firms form ties with universities, government units, private research centers, and even competitors to access what they need, it is referred to as _____.

A) strategic alliances
B) cartel arrangements
C) usury agreements
D) portfolio networks

Question 26

Which of the following new product characteristics probably has the greatest influence on trial rates?

A) Relative advantage
B) Complexity
C) Divisibility
D) Communicability

Question 27

How is preannouncement of a new product related to the competitiveness of an industry?

A) The degree of preannouncement decreases when the competitiveness in the industry is high.
B) The degree of preannouncement increases when the competitiveness in the industry is high.
C) The degree of preannouncement remains the same, irrespective of the level of competitiveness in the industry.
D) The degree of preannouncement first increases and then decreases with industry competitiveness.

Question 28

In the context of the A-T-A-R model of adoption of a new product, which of the following is part of a reseller's role?

A) Setting up a trial for the new product under artificial usage conditions
B) Doing a small volume of business in a standardized way with a big margin
C) Delegating the promotion of the new product to trade relations directors or sales managers
D) Preparing for the promotion of the product, including training salespeople and service people

Question 29

Which of the following statements is true of salespeople?

A) In customer-based sales organizations, salespeople are required to aggressively use hard-sell pushing.
B) For services, is apt to isolate the new product developer from the salespeople.
C) For consumer packaged goods, salespeople are usually not involved in the new product development early on.
D) Salespeople are usually given reduced territories when asked to sell a new product.

Question 30

In the context of a lean launch of a product, which of the following best describes time postponement?

A) Deploying inventory as late as possible
B) Locking in product design as late as possible
C) Locking in product identity as late as possible
D) Delaying the announcement of a new product as long as possible

Question 31

The trial phase in the adoption of a new product:

A) involves large scale usage of the product.
B) occurs before the awareness phase.
C) permits customers to verify claims about the product.
D) involves no cost for both the firm and the customers.

Question 32

In the context of the A-T-A-R model, which of the following is usually the necessary first step toward the adoption of a new product?

A) Availability
B) Testing
C) Trial
D) Awareness

Question 33

Firms attempting to increase penetration in existing markets are most likely to be emphasizing:

A) defensive additions.
B) offensive improvements.
C) deletion of existing products.
D) launch of new-to-the-world products.

Question 34

When a firm plans to launch an innovative new product, the launch strategies and tactics would include:

A) using existing distribution channels.
B) selling at extremely low prices.
C) focusing on creating exit barriers.
D) creating a broad product assortment.

Question 35

Large, powerful retailers often sell their scarce shelf space by charging manufacturers _____.

A) slotting allowances
B) opportunity costs
C) octroi fees
D) social costs

Question 36

Direct network externalities exist if product sales are dependent on:

A) sales of complementary products.
B) sales of competitive products.
C) the number of people that have adopted the product.
D) the primary demand for other older products.

Question 37

Under which of the following categories do novelty products and service products fall?

A) Low relative advantage and low compatibility with buyers' experiences
B) High relative advantage and high compatibility with buyers' experiences
C) High relative advantage and low compatibility with buyers' experiences
D) Low relative advantage and high compatibility with buyers' experiences

Question 38

Resellers' views are represented in the product development process by experienced salespeople like sales managers and _____.

A) trade creditors
B) category captains
C) internal auditors
D) trade relations directors

Question 39

A(n) _____ conveys information about the targeted market segment, product positioning strategy, and communications mix among many other points to an advertising person.

A) portfolio statement
B) copy strategy statement
C) expected effects matrix
D) organization chart

Question 40

A buyer gathering the trial experience of others for a new product, but without the use of electronic setups is an example of a _____.

A) personal trial
B) vicarious trial
C) firsthand trial
D) direct trial

Question 41

_____ refers to a price clearly above the market, but appropriate to a differentiated product, nonthreatening to competition, and with room for some price manipulations.

A) Premium
B) Penetration
C) Skim
D) Meet the market

Question 42

If a firm's target market customers do a serious trial on a new product, and if the firm has previously been assured from the product use test that people would like it, _____ is virtually ensured.

A) market leadership
B) repeat buying
C) high customer switching
D) low incremental advantage

Question 43

Which of the following promotional launch tactics is most likely to be used by a firm if product advantages must be learned through usage and experience?

A) Advertising
B) Sampling
C) Skimming pricing
D) Publicity

Question 44

Which of the following pricing strategies for products involves a very high price, intended to stay that way, with clear product differentiation?

A) Premium pricing
B) Predatory pricing
C) Penetration pricing
D) Meet the market pricing

Question 45

What are the various new product price strategies available to a firm?

Question 46

Products that are clearly superior on attributes that buyers consider important have:

A) low relative advantage and low compatibility with buyers' experiences.
B) high relative advantage and low compatibility with buyers' experiences.
C) high relative advantage and high compatibility with buyers' experiences.
D) low relative advantage and high compatibility with buyers' experiences.

Question 47

Skimming pricing is best recommended for products having:

A) low relative advantage and low compatibility with buyers' experiences.
B) high relative advantage and high compatibility with buyers' experiences.
C) high relative advantage and low compatibility with buyers' experiences.
D) low relative advantage and high compatibility with buyers' experiences.

Question 48

Which of the following best describes the pricing strategy "meet the market"?

A) A very high price, intended to stay that way, with clear product differentiation.
B) A price that is clearly low and designed to buy one's way into the market.
C) A price that takes price out of the market play as much as possible.
D) A price clearly above the market that is appropriate to a differentiated product.

Question 49

While launching a product with low relative advantage and low compatibility with buyers' experiences, the:

A) older product should not be deleted from the market quickly.
B) product promotion should be information based.
C) price of the product should be above the market.
D) distribution of the product should be highly selective.

Question 50

Discuss the tactics used for launching a product with low relative advantage and low compatibility with buyers' experiences.

Question 51

What consequences will a firm face if the timing of a new product's launch is wrong?

Question 52

Which of the following types of promotion is typically used for a product with low relative advantage and high compatibility with buyers' experiences?

A) Risk-based promotion
B) Awareness promotion
C) Reseller promotion
D) Usage-based promotion

Question 53

For products with low relative advantage and high compatibility with buyers' experiences:

A) risk-based promotions work well.
B) broad product assortments are suitable.
C) intensive distribution makes sense.
D) preannouncements before entry are necessary.

Question 54

What does a lean launch system mean? What are its advantages?

Question 55

Describe three common patterns for new product launch strategies and tactics.