C HAPTER 8 NEW-PRODUCT DEVELOPMENT AND PRODUCT LIFE-CYCLE STRATEGIES CRS Questions & Answers

Copyright 2007, Prentice-Hall Inc.8-2 “A berry flavored, low-calorie drink appealing to women who need a quick energy boost while on the go” would be considered a: 1.Product idea 2.Product concept 3.Product image 4.Marketing strategy statement

Copyright 2007, Prentice-Hall Inc.8-3 “A berry flavored, low-calorie drink appealing to women who need a quick energy boost while on the go” would be considered a: 1.Product idea 2.Product concept 3.Product image 4.Marketing strategy statement A product idea is an idea for a possible product that the company can see itself offering to the market. A product concept is a detailed version of the idea stated in meaningful consumer terms.

Copyright 2007, Prentice-Hall Inc.8-4 All of the following could be excellent sources of new-product ideas EXCEPT: 1.Competitive products 2.Employee brainstorming sessions 3.Past product failures 4.Customer complaints

Copyright 2007, Prentice-Hall Inc.8-5 All of the following could be excellent sources of new-product ideas EXCEPT: 1.Competitive products 2.Employee brainstorming sessions 3.Past product failures 4.Customer complaints Products that failed in the past did so for a reason. While the reason(s) for a product’s failure may sometimes be analyzed and “fixed,” past product failures do not represent an excellent source of new product ideas.

Copyright 2007, Prentice-Hall Inc.8-6 If a product concept survives the business analysis, it moves into the ________ of the new product development process. 1.concept testing 2.market testing 3.market development 4.product development

Copyright 2007, Prentice-Hall Inc.8-7 If a product concept survives the business analysis, it moves into the ________ of the new product development process. 1.concept testing 2.market testing 3.market development 4.product development Companies minimize costs (of failed ideas) by conducting a business analysis of a concept’s projected sales, costs, and profits BEFORE building a prototype product.

Copyright 2007, Prentice-Hall Inc.8-8 A new snack food is promoted and sold in a single city for a short time. If successful, the snack food product has passed the _________ stage of the new product development process. 1.commercialization 2.regional rollout 3.test market 4.concept testing

Copyright 2007, Prentice-Hall Inc.8-9 A new snack food is promoted and sold in a single city for a short time. If successful, the snack food product has passed the _________ stage of the new product development process. 1.commercialization 2.regional rollout 3.test market 4.concept testing During test marketing, the product and marketing program are introduced into realistic marketing settings.

Copyright 2007, Prentice-Hall Inc.8-10 Your firm decides to take a chance on introducing a new drink simultaneously in the United States, Western Europe, Japan, and South Korea. The firm is planning a: 1.Market rollout 2.Regional rollout 3.Strategic rollout 4.Global rollout

Copyright 2007, Prentice-Hall Inc.8-11 Your firm decides to take a chance on introducing a new drink simultaneously in the United States, Western Europe, Japan, and South Korea. The firm is planning a: 1.Market rollout 2.Regional rollout 3.Strategic rollout 4.Global rollout Global rollouts swiftly introduce a new product into multiple countries simultaneously or in rapid succession.

Copyright 2007, Prentice-Hall Inc.8-12 Styles, fads, and fashions have their own unique life cycles. Which of these product life cycles typically lasts the longest? 1.Style 2.Fad 3.Fashion 4.The overall length of the PLC does not vary; only the amount of time spent in each stage of the PLC varies between the three.

Copyright 2007, Prentice-Hall Inc.8-13 Styles, fads, and fashions have their own unique life cycles. Which of these product life cycles typically lasts the longest? 1.Style 2.Fad 3.Fashion 4.The overall length of the PLC does not vary; only the amount of time spent in each stage of the PLC varies between the three. Styles are basic and distinctive modes of expressions, which may last for generations, passing in and out of vogue.

Copyright 2007, Prentice-Hall Inc.8-14 Your product gradually gains popularity and seems to have settled into a long maturity, yet you soon realize that you must sell it abroad to keep sales healthy. In other words, you must: 1.modify the product 2.modify the market 3.modify the marketing mix 4.modify the promotion budget

Copyright 2007, Prentice-Hall Inc.8-15 Your product gradually gains popularity and seems to have settled into a long maturity, yet you soon realize that you must sell it abroad to keep sales healthy. In other words, you must: 1.modify the product 2.modify the market 3.modify the marketing mix 4.modify the promotion budget A market modification strategy occurs when a firm attempts to increase the consumption of current products, typically via new market segments or new uses/users.

Copyright 2007, Prentice-Hall Inc.8-16 Sales of product X have been declining steadily. Competitors show no sign of leaving the market, and advertising costs are moderate. The best strategy would probably be to: 1.maintain the brand 2.harvest the brand 3.drop the brand 4.reinvigorate the brand

Copyright 2007, Prentice-Hall Inc.8-17 Sales of product X have been declining steadily. Competitors show no sign of leaving the market, and advertising costs are moderate. The best strategy would probably be to: 1.maintain the brand 2.harvest the brand 3.drop the brand 4.reinvigorate the brand Reducing costs, such as advertising, is a method of increasing the firm’s short-run profits. Reinvigoration may also be a possibility if product category sales are strong.