Deck 7: Developing and Managing Offerings

Question 1

The size of a company will affect how the different stages of their new product development process are conducted.

Answer 1

True

Question 2

Idea generation is typically the most expensive step in the process of developing new offerings.

Answer 2

False

Question 3

Testing is a relatively inexpensive step in the product development process.

Answer 3

False

Question 4

Customers who are good at generating new product ideas or applications of products are called _____.

A)lead users
B)alpha testers
C)innovators
D)first movers
E)trend setters

Question 5

In the idea screening stage,companies evaluate new offerings by determining:

A)if the product cost more during idea generation than expected.
B)the product's features.
C)if the product fits with the image and corporate strategy.
D)the product's specifications.
E)if the product works like it is supposed to.

Question 6

New product ideas typically move down the supply chain.

Question 7

In B2B markets,customers are typically a large source of new product ideas.

Question 8

Depth interviews involve gathering eight to twelve consumers and gauging their reaction to a product/service concept.

Question 9

Focus groups are conducted after the testing stage of the new offerings development process.

Question 10

In which of the following stages of the new product development process does concept testing occur?

A)Launch
B)Idea generation
C)Development
D)Idea screening
E)Testing

Question 11

Milestones utilized by companies to evaluate product performance are typically the same within an industry.

Question 12

A line extension occurs when a company comes out with another model based on the same _____ and _____ as one of its other products.

A)platform; advertising
B)platform; brand
C)brand; advertising
D)marketing mix; offering
E)offering; consumers

Question 13

The risk that there is a better idea that gets ignored because the firm has invested in the idea at hand is known as opportunity risk.

Question 14

The purpose of concept testing is to get early consumer feedback before investing too much money in an offering that won't work.

Question 15

A rolling launch might make sense if the company's service technicians need training.

Question 16

_____ is the process of obtaining product ideas,funding,and other contributions online from large numbers of people.

A)crowdcollecting
B)mass sourcing
C)crowdsourcing
D)mass collecting
E)crowdmining

Question 17

The purpose of idea screening is to try to avoid mistakes early in the development process.

Question 18

Financial feasibility is the degree to which the company can actually make and service the product.

Question 19

Quality function deployment is the process whereby a company starts with the innovation and then designs an offering.

Question 20

Most companies put new offering ideas through a seven-step process.

Question 21

_____ ensures that a product meets its specifications in a variety of environments determined by the company.

A)Concept testing
B)Product testing
C)Alpha testing
D)Primary testing
E)Beta testing

Question 22

The feature specifications process begins with a strong understanding of:

A)what risks are involved.
B)what opportunity costs are entailed.
C)what consumers want and need.
D)what the financial feasibility of the product is.
E)what the marketing mix should entail at launch.

Question 23

Quality function deployment is a process utilized in which step of the product development process?

A)launch
B)feature specification
C)development
D)evaluation
E)testing

Question 24

_____ refers to the potential of losing one's money and time should a new offering fail.

Question 25

In terms of a manufactured offering,using the same technology platform as another product can be:

A)costly and cumbersome.
B)seen as having a lack of innovative spirit.
C)a subpar strategy.
D)effective and less expensive.
E)difficult for training technicians.

Question 26

_____ refers to the degree to which an organization can actually make and service an offering.

Question 27

_____ not only tests whether the offering works as advertised,but it also tests the offering's delivery mechanisms,service processes,and other aspects of marketing the product.

A)Concept testing
B)Product testing
C)Alpha testing
D)Primary testing
E)Beta testing

Question 28

_____ is the term used specifically for obtaining funding online for projects.

Question 29

_____ is the potential loss of revenue a company risks losing when it choose an alternative course of action,such as launching a different offering.

Question 30

A(n)_____ is a new idea or offering that occurs when a company comes out with another model based on the platform and brand as one of its other products.

Question 31

_____ are potential customers who are innovative and develop new applications or new products for their own use without the aid of a supplier.

Question 32

A firm considers the product's manufacturing process during which stage of the product development process?

A)Launch
B)Feature specification
C)Development
D)Evaluation
E)Testing

Question 33

A focus group consists of _____ people in which they focus on a particular topic.

Question 34

_____ involves presenting an idea for an offering to consumers for their reaction early in the offering development process.

Question 35

_____ refers to the possibility that the company will fail to earn the appropriate return on the money and effort it puts into the new product.

A)Investment risk
B)Financial risk
C)Opportunity risk
D)Innovation risk
E)Product risk

Question 36

A new offering's financial feasibility addresses its ability to _____.

Question 37

To understand if a product offering is financially feasible to justify investing in it,companies often consider the customer's _____.

A)potential interest in the product
B)demographics,including income
C)value segmentation
D)price point
E)personal value equation

Question 38

While Mark is performing beta tests on his company's new product,the _____ is being developed and tested that will be used to launch the product.

A)marketing communication plan
B)marketing plan
C)market research report
D)product stress structure
E)product beta plan

Question 39

A company must balance an offering's _____ risk against the offering's _____ risk.

A)financial; investment
B)product; financial
C)investment; opportunity
D)opportunity; investment
E)financial; product

Question 40

A company may induct a(n)_____ to ensure that the launch of a new product reaches buyers,gets positive feedback,and generates sales of the product or service.

A)rolling launch
B)market test
C)beta test
D)marketing communication plan
E)sales promotion

Question 41

A skimming price strategy involves setting a high initial price for a product,to more quickly recoup the investment related to its development and marketing.

Question 42

A company that makes an offering available to certain markets first and then other markets later,is employing a _____ strategy.

Question 43

Divesting refers to when a company reduces investment in a product or service.

Question 44

The growth stage is characterized by decreasing sales,less competitors,and low profits.

Question 45

List and briefly describe the steps involved in developing new offerings.

Question 46

Identify various sources of idea generation for companies.

Question 47

The stage of the product life cycle when profits are virtually nonexistent is known as the decline stage.

Question 48

The stage in the product life cycle when the demand and sales first increase is known as the growth stage.

Question 49

_____ feasibility affects _____ feasibility.

Question 50

In the new offering development process,the launching stage follows the _____ stage.

Question 51

In B2B settings,beta tests are usually conducted with preferred customers and _____.

Question 52

Customers are particularly important co-creators of offerings when they are consuming products with _____.

Question 53

In the new offering development process,the idea-screening stage follows the _____ stage.

Question 54

Over 20,000 new offerings enter the marketplace each year.

Question 55

New offering ideas can come from _____,_____,_____,and _____.

Question 56

TLC refers to the stages that a product may go through over time.

Question 57

Identify tools that marketers use in the idea screening stage of new product development.

Question 58

A company must decide whether to keep,modify,or drop a product in the decline stage.

Question 59

_____ involves testing a product in a laboratory setting,while _____ involves testing a product by a real customer.

Question 60

A(n)_____ is the test launch of a product's complete marketing plan to ensure that it reaches buyers,gets positive reactions,and generates sales of the product.

Question 61

Downsizing entails:

A)decreasing the product price.
B)decreasing the amount of units sold at a retail location.
C)decreasing the size of the package.
D)creating a new product line.
E)getting rid of a product,service,or business.

Question 62

The price of the product itself typically goes down during the growth stage.

Question 63

The product life cycle is the exclusive tool used by marketers to help them manage the stages of a product's acceptance and success in the marketplace.

Question 64

The amount of time within each stage of the product life cycle tends to be similar for most products.

Question 65

Heavy costs are associated with the _____ stage of the product life cycle.

A)maturity
B)growth
C)introduction
D)decline
E)downsizing

Question 66

The stage in the product life cycle which attracts competitors who enter the market very quickly is known as the _____ stage.

A)maturity
B)growth
C)introduction
D)decline
E)downsizing

Question 67

Firms develop strategies to extend the maturity stage of their products by modifying their target markets,their offerings,or their marketing strategies.

Question 68

To reach wholesalers and retailers,firms utilize _____.

A)billboard campaigns
B)mass marketing
C)coupons
D)personal selling
E)sampling

Question 69

A price skimming strategy is often used for products such as cereals.

Question 70

For more technical or expensive products such as computers or plasma televisions,many firms utilize _____.

A)sampling
B)personal selling
C)professional selling
D)transit signs
E)coupons

Question 71

Not all products go through all stages of the product life cycle.

Question 72

The stage in the product life cycle when the market is saturated with competitors is known as the _____ stage.

A)maturity
B)growth
C)introduction
D)decline
E)downsizing

Question 73

The stage in the product life cycle when a successful product first becomes profitable is known as the _____ stage.

A)maturity
B)growth
C)introduction
D)decline
E)downsizing

Question 74

The stage in the product life cycle when an organization must have enough distribution outlets to get the product to the customers is known as the _____ stage.

A)maturity
B)growth
C)introduction
D)decline
E)downsizing

Question 75

Companies introducing products and services abroad typically must have the financial resources to make a long-term commitment.

Question 76

Which of the following are often involved in an organization's objectives during the introductory stage?

A)Building on past experience with the product.
B)Deciding whether the product should be modified.
C)Developing repositioning strategies.
D)Evaluating the competitor's products.
E)Educating potential customers about its value and benefits.

Question 77

A(n)_____ is utilized to get back the money invested in creating a new product offering.

A)investment pricing strategy
B)skimming pricing strategy
C)cost-based pricing strategy
D)penetration pricing strategy
E)competitor-based pricing strategy

Question 78

Organizations want consumers to perceive that a new offering is desirable or better than existing products.

Question 79

In a penetration pricing strategy,the high price entailed must be consistent with the nature of the product as well as the other marketing strategies being used to promote it.

Question 80

Firms that manufacture cereals and snacks typically utilize mass marketing efforts.