Deck 3: Opportunity Identification and Selection: Strategic Planning for New Products

Question 1

According to the strategic decision group portfolio evaluation model,projects with high expected commercial value (ECV)and low probability of technical success fall into the pearls category.

Answer 1

False

Question 2

The product innovation charter can be thought of as a kind of mission statement,but applied at a more micro level within the firm.

Answer 2

True

Question 3

A product-portfolio approach bears some similarity to the familiar Boston consulting group portfolio model,but allows lesser flexibility in the choice of dimensions.

Answer 3

False

Question 4

While the platform concept works well for physical products,it cannot be successfully used for services.

Question 5

Goals are short-term,specific measures of progress / accomplishment.

Question 6

The value of an established brand is called its brand equity.

Question 7

Letting customers' stated wants drive product innovation is likely to work well in all markets.

Question 8

Most marketing effort today is conducted at product platform levels.

Question 9

The product innovation charter (PIC)should flow from and be consistent with the firm's ____.

A)brand image
B)mission statement
C)articles of incorporation
D)corporate etiquettes

Question 10

User and end-use are not alike.

Question 11

The quick second entry option is usually a price entry keyed to manufacturing skills.

Question 12

Technology is the single most important factor in the development of successful new products.

Question 13

The new product team operates as a "company within a company" under the direction of the firm's new products strategy.

Question 14

In today's cost-driven environment,the finance area typically exerts the greatest functional influence upon new product development.

Question 15

Given below are examples of corporate strengths that managements have asked be used to differentiate the firm's new products.Which of these have a technology focus?

A)Coca Cola: Gain value by being bottled in our bottling system
B)Gerber: Be for babies and only babies
C)Nike: Be for all sports and not just shoes
D)IBM: Be for all people in computers,not just techie type

Question 16

The America-First Corporation is seeking a way to gain the benefits of standardization-while providing the variety desired by consumers.The firm may accomplish this goal by creating ____.

A)SBUs
B)PICs
C)product platforms
D)product pools

Question 17

Typically,the product innovation charter is prepared by team leaders.

Question 18

The core competencies of a firm are an excellent place to start the search for charter arena definitions.

Question 19

A platform can be a technology,a design,a subsystem-anything that can be shared by one or more product families.

Question 20

The term "platform" was initially associated with this industry.Identify this industry.

A)Packaged food
B)Consumer electronics
C)Automobiles
D)Computers

Question 21

Which of the following statements is true about a product innovation charter (PIC)?

A)It is typically prepared by team leaders.
B)It is designed to provide guidance to the business units on the role of innovation.
C)It reminds us that the new product strategy is for processes and other activities.
D)It can be thought of as a kind of vision statement which is applied at macro level.

Question 22

Which of the following statements is true about a platform?

A)The term platform was initially used in the packaged goods industry.
B)A platform can be a design.
C)Usage of a platform generally increases the cost of the products.
D)Platforms can be used for manufactured goods but not for services.

Question 23

A computer services firm decides to enter in the field of cosmetics.According to the product market matrix,the innovativeness risk in this case could be ____.

A)none
B)low
C)medium
D)dangerous

Question 24

Many futurists advocate studying the emerging trends in society and deriving product opportunities from them.A team of experts from the consulting firm Social Technologies identified six important and provocative modern trends.Which of these trends is most likely related to the services provided by Twitter or related services that allow instantaneous updates about friends?

A)Co-creation
B)Just-in-Time Life
C)Sensing Consumers
D)The Transparent Self

Question 25

Which of the following,if implemented,will ensure that the product innovation charter (PIC)is effective?

A)The PIC should be based on the employment policies.
B)The senior management should stay involved in the implementation of the PIC.
C)The PIC should be developed by team leaders.
D)The PIC should be communicated to all the channel partners.

Question 26

Any "rules of the road," requirements imposed by the situation or by upper management form a part of _____ section of a PIC.

A)background
B)focus
C)goals-objectives
D)guidelines

Question 27

The value of an established brand is called its ____.

A)channel equity
B)tangible asset
C)brand equity
D)trading asset

Question 28

Which of the following describes the problem of scope creep faced by a new product team?

A)Employees in the organization are not aware of the PIC.
B)The PIC is not given to all the members of the new product team in the form of a written document.
C)The definition of the project constantly keeps changing.
D)The senior management is not involved in the implementation of the PIC.

Question 29

Identify the situation associated with the greatest amount of innovativeness risk.

A)Moderate changes in operations / marketing and major changes in consumer use behavior.
B)Major changes in both operations / marketing and consumer use behavior.
C)Major changes in consumer use behavior and moderate changes in operations / marketing.
D)No change in operations / marketing and major changes in consumer use behavior.

Question 30

Which of the following is most likely to be an advantage of a product platform?

A)It increases brand awareness.
B)It increases the market capitalization of the organization.
C)It reduces the cost of the product.
D)It improves the quality of the product.

Question 31

Key ideas from the situation analysis and reasons for preparing a new PIC at this time would be stated in this section of a PIC.Identify the section.

A)Background
B)Focus
C)Goals-objectives
D)Guidelines

Question 32

The product innovation charter utilizes this as an input.

A)Employment policies
B)Articles of incorporation
C)Code of conduct
D)Corporate mission

Question 33

These platforms can be strategically important.They are based upon billion-dollar assets so many of these platforms are personally driven by CEOs.Identify the platform in discussion.

A)Channel platform
B)Category platform
C)Product platform
D)Brand platform

Question 34

At least one clear technology dimension is matched with one clear market dimension in the _____ section of the PIC.

A)background
B)focus
C)goals-objectives
D)guidelines

Question 35

Given below are examples of corporate strengths that managements have asked be used to differentiate the firm's new products.Which of these have a market focus?

A)Herman Miller: Utilize our fine furniture designers
B)IBM: Be for all people in computers,not just techie type
C)Braun: Utilize innovative design in every product
D)White Consolidated: Be made on our assemble lines

Question 36

Most marketing effort today is focused upon _____ platforms.

A)brand
B)technological
C)channel
D)category

Question 37

IBM used a standard set of subcomponents for all ThinkPad products.This is an example of IBM using a ____.

A)brand platform
B)category platform
C)channel platform
D)product platform

Question 38

Boeing makes passenger,cargo,short-haul,and long-haul aircraft from the same design,with many shared components.This is an example of Boeing using a ____.

A)product platform
B)brand platform
C)channel platform
D)category platform

Question 39

Many futurists advocate studying the emerging trends in society and deriving product opportunities from them.A team of experts from the consulting firm Social Technologies identified six important and provocative modern trends.One of these trends is "The transparent self." This trend refers to which of the following observations?

A)There is more information about consumers available to product managers now than ever before.
B)People like making spur-of-the-moment decisions based on real-time information.
C)People can sense their environment better now than ever before;what might be "too much information" for some might be essential information for others.
D)As more people become accustomed to virtual spaces,the boundary between these and the real world will become increasingly blurreD.

Question 40

A manufacturer of ice creams introduces a new mint and lime flavor ice cream.According to the product / market matrix,the amount of innovativeness risk that the firm brings with this new flavor would be ____.

A)high
B)low
C)medium
D)dangerous

Question 41

The best new product ideas are based on ____,which serve as the heart of the concept generation process.

A)channel desires
B)manufacturing efficiencies
C)profit goals
D)customer problems

Question 42

Using glue to replace metal fasteners in electronics and automotive products is an example of ____.

A)leveraged creativity
B)state-of-the-art breakthrough
C)applications engineering
D)product adaptation

Question 43

Which of the following is a variation on the single-customer focus where we offer all customers a product of their individual choice?

A)Mass customization
B)Mass production
C)Mass standardization
D)Mass advertising

Question 44

Burger King's "Have It Your Way" was an early version of:

A)mass production.
B)mass customization.
C)mass standardization.
D)mass advertising.

Question 45

The procedure of converting technical specifications,to product features and benefits,to market needs is called the ____.

A)dual-drive strategy
B)just-in-time strategy
C)T-P-M linkage
D)customer franchise

Question 46

Many futurists advocate studying the emerging trends in society and deriving product opportunities from them.A team of experts from the consulting firm Social Technologies identified six important and provocative modern trends.Discuss these trends.

Question 47

In the context of new product arena,focus is generally achieved by the use of four types of strengths or leverage capabilities.Which of the following is one of those strengths?

A)End-use experience
B)Employee skills
C)Market capitalization of the organization
D)Ownership of a scarce resource

Question 48

DuPont researchers find the special properties of synthetic materials such as Surlyn and Kevlar,then think up creative applications to arrive at new products.This is an example of ____.

A)leveraged creativity
B)state-of-the-art breakthrough
C)applications engineering
D)product adaptation

Question 49

What is a product platform?

Question 50

Discuss the portfolio evaluation model proposed by the Strategic Decision Group (SDG)which takes into consideration expected commercial value and probability of technical success.

Question 51

The America-First Corporation seeks to dominate every market it enters.The firm's statement is best described as a(n)____.

A)goal
B)strategy
C)objective
D)platform

Question 52

Which of the following is the most common way to execute a first-to-market strategy?

A)State-of-the-art breakthrough
B)Applications engineering
C)Leveraged creativity
D)Adaptive applications

Question 53

Stanley Tool's hold on the woodworker is a successful example of an attempt to leverage ____.

A)technology
B)end-use experience
C)product experience
D)customer franchise

Question 54

What is a product innovation charter (PIC)?

Question 55

Which timing strategy is very demanding,because such a firm has to make the decision to enter the market before the innovator is successful or has even come to market?

A)Slower entry
B)Quick second
C)First entry
D)Late entry

Question 56

What are the various ways of implementing the first to market strategy? Explain with examples.