Deck 17: Launch Management

Question 1

With reference to the expected effects matrix, which of the following problems represents control variables that require contingency planning and tracking, if possible?

A) Noticeable events with low likelihood of occurrence
B) Harmful events with low likelihood of occurrence
C) Noticeable events with moderate likelihood of occurrence
D) Harmful events with high likelihood of occurrence

Answer 1

D

Question 2

If a product's market window of profitability is shorter than expected, this may indicate a turning point in the life cycle and may require strategic thinking for the next product put into development.

Answer 2

True

Question 3

The final step in the product deletion process involves determining whether the deletion would leave a major hole in the firm's product line.

Answer 3

False

Question 4

The second step in a launch management system for a new product involves:

A) reducing the list of potential problems to a controllable number.
B) designing an effective tracking system.
C) developing contingency plans.
D) identifying potential problems using situation analysis.

Question 5

Unexpected low sales for a new product typically triggers automatic, corrective contingency plans.

Question 6

The first step in a launch management system is to develop a contingency plan.

Question 7

In principle, launch management plans of large and small firms are exactly the same-problem, tracking variable, trigger point, and remedial plan ready to go.

Question 8

The development of a new product ends when the item arrives at the shipping dock.

Question 9

It is an ineffective practice to contract out the production of temporary products.

Question 10

The toughest part of a product's launch management is developing a situation analysis.

Question 11

In the context of the innovation dashboard that establishes metrics to evaluate a firm's new products process, R&D spending is a performance metric.

Question 12

Once a product or product line is discontinued, it holds no revenue opportunities for the firm.

Question 13

Abandonment of a product marks the end of a launch manager's job.

Question 14

A launch management system must have an effective tracking system with trigger points to activate contingency plans.

Question 15

Which of the following methods can be used to reduce the list of problems, identified in the first step of launch management, based on the potential damage and the likelihood of occurrence?

A) Expected effects matrix
B) Situation analysis
C) Cumulative expenditures curve
D) Hierarchy of effects model

Question 16

In launch management, firms may best select problems for control by using the:

A) hierarchy of effects model.
B) Boston matrix.
C) expected effects matrix.
D) perceptual mapping model.

Question 17

Generally, the easiest products to shut down are new-to-the-world product projects.

Question 18

With reference to the expected effects matrix, noticeable events with moderate likelihood of occurrence must be dealt with immediately.

Question 19

In launch management of new products, a tracking variable is relevant if it identifies the key problem.

Question 20

Which of the following methods can be used to spot potential problems during the launch management of a new product?

A) Hierarchy of effects model
B) After Action Review
C) Product life cycle analysis
D) Cumulative expenditures curve

Question 21

The hierarchy of effects is one of the methods used for identifying potential problems in the launch management of a new product. Which of the following statements is true regarding this method?

A) It tries to predict competitors' reactions after they have heard of the new product.
B) It involves going through all the data accumulated in the new product's file.
C) It starts with a satisfied customer and works back from that satisfaction to identify the effects necessary to produce it.
D) It involves asking channel partners to predict the potential problems and their effects on the launch of the new product.

Question 22

According to the expected effects matrix, devastating events having a low likelihood of occurrence:

A) must be dealt with immediately.
B) are alert variables that must be watched closely.
C) can be safely ignored.
D) are control variables that require contingency planning and tracking.

Question 23

In the context of the innovation dashboard that establishes metrics to evaluate a firm's new products process, identify a performance metric.

A) Average time taken to market new products
B) Number of employees devoted to innovation
C) Percentage of sales derived from new products
D) Number of patents filed by a firm

Question 24

In the context of the innovation dashboard that establishes metrics to evaluate a firm's new products process, return on investment in innovation is a(n):

A) procedural efficiency metric.
B) process effectiveness metric.
C) innovation input metric.
D) performance metric.

Question 25

Which of the following statements is true of metrics for innovation?

A) It is not an effective practice to get external validation for performance metrics.
B) Performance metrics need to be adjusted and fine-tuned through time, so that they are aligned with business goals.
C) In the recent times, there has been a drastic decline in the use of social media metrics in launch management.
D) The fewer the performance metrics, the greater the conflict between themselves.

Question 26

In a new product launch, when there is a problem that cannot be tracked because the firm cannot find a variable for it, typically the management should:

A) watch sales.
B) withdraw the product permanently from the market.
C) limit the involvement of salespeople and distributors during post-launch.
D) apply an expected effects matrix to find a solution.

Question 27

In launch management, tracking variables should be relevant, measurable, and _____.

A) endogenous
B) controllable
C) predictable
D) continuous

Question 28

When designing a tracking system in launch management, a tracking variable is considered _____ if it identifies the key problem.

A) measurable
B) continuous
C) relevant
D) controllable

Question 29

In the context of innovation dashboard, number of patents filed by a firm is a metric for:

A) innovation inputs.
B) process effectiveness.
C) performance outcomes.
D) research efficiency.

Question 30

Which of the following problems in launch management is most likely to be untrackable and requires a firm's management to inquire among suppliers and media?

A) Chief competitor has the same new product feature for which the firm has no patent.
B) Buyers make trial purchases but do not place quantity orders.
C) Potential customers are not making trial purchases of the new product.
D) Salespeople fail to contact general-purpose market at prescribed rate.

Question 31

In the launch management of a new product, a tracking system is designed to:

A) tell the firm when to implement the contingency plans.
B) identify potential problems.
C) reduce the problem list to a size the firm can handle and control.
D) track the movement of the product from the manufacturing unit to the shipping dock.

Question 32

In the context of the innovation dashboard that establishes metrics to evaluate a firm's new products process, which of the following is an input metric?

A) Time to market
B) R&D spending
C) Budgeted versus actual time
D) Percentage of sales

Question 33

In the context of launch management, eyeball control refers to:

A) starting with a satisfied customer and working back from that satisfaction to determine the hierarchy of effects necessary to produce it.
B) externally validating the performance metrics that are used to evaluate a firm's new products process.
C) capturing the events leading up to the product launch and then trying to understand the thinking behind the actions taken.
D) moving around the market to find if problems are coming about, and then planning what will be done if they are.

Question 34

In the context of the innovation dashboard that establishes metrics to evaluate a firm's new products process, identify a process effectiveness metric.

A) Number of new products introduced
B) Number of new product ideas in the pipeline
C) Percentage of new product ideas sourced from outside a firm
D) Number of employees devoted to innovation

Question 35

In launch management, it is important to select relevant, measurable, and predictable tracking variables essentially because they:

A) make contingency plans foolproof.
B) warn that a problem is coming about.
C) help track the new product in its supply chain.
D) help measure the success of contingency plans.

Question 36

A(n) _____ establishes performance metrics for innovation inputs, process effectiveness, and performance outcomes.

A) outcome development matrix
B) expected progress matrix
C) performance power grid
D) innovation dashboard

Question 37

In the expected effects matrix, those problems placed in the bottom/right cell:

A) should be taken care of immediately.
B) are alert variables that must be watched closely.
C) can be safely ignored.
D) are control variables that require contingency planning and tracking, if possible.

Question 38

In the launch management of a new product, once the identified problems are reduced to a size a firm can handle, the next step would be:

A) developing contingency plans.
B) designing a tracking system.
C) conducting situation analysis.
D) recording competitors' reactions.

Question 39

The final step in the launch management system is:

A) selecting potential problems to control.
B) selecting the trigger points.
C) developing contingency plans.
D) ranking and controlling potential problems.

Question 40

Today, in new products management, development ends:

A) with the creation and testing of a final prototype.
B) with the launch of the new product.
C) when a product has performed satisfactorily in the hands of the end user.
D) when the product arrives at the shipping dock.

Question 41

If the market situation for a product in decline is particularly difficult and solutions lie only in longer-time product changes, the most appropriate thing will be to:

A) pull out the product permanently from the market.
B) increase all promotion and personal selling.
C) hold the market in a freeze until a solution is found.
D) increase production to flood markets for greater visibility.

Question 42

In the context of a new product launch, briefly describe the five major areas in the gap analysis matrix that can be measured and compared to expected plan.

Question 43

Which of the following statements is NOT true about an after-action review (AAR)?

A) Its goal is to identify what went right and what went wrong in product development.
B) It includes statements of planned objectives and actual results.
C) It is limited to the top management as they are the only ones who have direct experience with the entire product development cycle.
D) It includes a statement of what has been learned in a product launch, and an outline for the next steps.

Question 44

A(n) _____ is designed to capture the events leading up to a product launch and to try to understand the thinking behind the actions taken.

A) after-action review (AAR)
B) A-T-A-R model
C) expected effects matrix
D) hierarchy of events matrix

Question 45

In the first step of a product deletion process, a firm must:

A) explores ways by which the viability of the product might be restored through quality or price adjustments.
B) compare the performance of the product against certain criteria and guideposts.
C) evaluate the full effect of the deletion on overheads, expenses, and capacity utilization.
D) decide whether the product is to be deleted immediately, milked, or sold out.

Question 46

Which of the following is least likely to need a launch management plan?

A) Industrial commodities
B) Fad products
C) Agricultural commodities
D) Health care services

Question 47

Briefly discuss the use of social media metrics in launch management.

Question 48

In launch management, when the potential customers of a new product are not making trial purchases of the product, then tracking is most likely to be done by:

A) inquiring among the firm's suppliers and media.
B) withdrawing the product from the market.
C) watching the moves of a chief competitor closely and imitating the same strategy to firm's benefit.
D) instituting a series of follow-up telephone calls to prospects who have received sales presentations.

Question 49

Which of the following statements is true about an after-action review (AAR)?

A) It essentially involves managers moving around the market to find if problems are coming about, and then planning what will be done if they are.
B) It is limited to the top management as they are the only ones who have direct experience with the entire product development cycle.
C) It need not be terribly formal, in some cases a couple of individuals meeting briefly after a customer visit might suffice.
D) It fails to identify weak areas in a firm's product development processes that need to be fixed.

Question 50

Discuss the revenue opportunities a firm may have if a product or product line is discontinued.

Question 51

What are the three essentials involved in applying the tracking concept to new products?

Question 52

Which of the following is NOT true of occasional products?

A) They require advertising and personal selling expenditures to build immediate sales.
B) Production is contracted out if possible for such products.
C) Prices are held steady for such products.
D) They have greater need for launch management than other regular products.

Question 53

In which of the following stages of a product deletion process does a firm consider the full effects of the deletion on its overheads, expenses, and capacity utilization?

A) Product recognition stage
B) Implementation stage
C) Evaluation and decision formulation stage
D) Analysis and revitalization stage

Question 54

Discuss the various methods of identifying potential problems during launch management.

Question 55

Which of the following statements is true regarding the launch management for temporary products?

A) Production is contracted out if possible.
B) Follow-on products need to be scheduled.
C) Long-term service facilities need to be built.
D) Prices are gradually increased.