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1) What are the two ways that a company can obtain new products?

a- line extension and brand management b- internal development and merger c- new-product development and acquisition d- service development and product extension e- market mix modification and research and development

2) Which of the following is NOT a challenge presented to marketers by the product life cycle?

a-All products eventually decline. b- A firm must be good at developing new products to replace aging ones.

c- A firm must be good at adapting its marketing strategies.

d-It is difficult to plot the stages as a product goes through them. e-Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages.

3) The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers. .... .....

a- competitors, distributors, and employees; new styles b- customers, brands, products; product images c- customers, competitors, and markets; superior value d- product, marketing mix, and marketing strategy; functional features

e- product life cycle, legal responsibilities, and social responsibilities; innovations

4) Executives, manufacturing employees, and salespeople are all examples of ________. .... a-external sources for new-product ideas b-internal sources for new-product ideas c- core members of innovation management systems d- research and development team members e- new-product committee members

5) According to your text, which of the following is perhaps the most important external source of new-product ideas? . a- engineers b- customers c- competitors d- trade magazines, shows, and seminars e- distributors and suppliers

6) Your firm asks you to consult external sources for new product ideas. All of the following are common external sources EXCEPT ________.

......... a-customers b- suppliers c- competitors d- trade shows and magazines e- the firm's executives

7) The R-W-W framework asks three questions: Is it real? Can we win? Is it worth doing? Marketers should ask these questions during the ________ stage of the new-product development process. : ......... a- idea generation b- idea screening c- concept testing d- product development d- commercialization

8) Which of the following is most likely to be included in an executive's write up of a new-product idea to be presented to a new-product committee?

a-the proposed customer value proposition b- the product image c- the marketing strategy d- the business analysis e- the planned market rollout

9) A ________ is the way consumers perceive an actual or potential product. ....... a- product idea b- product concept c- product image d- test market e- concept test

10) ________ calls for testing new-product concepts with groups of target consumers. ........ a- Concept development b- Concept testing c- Idea generation

d- Idea screening e- Test marketing

11) With what groups do firms conduct concept testing for new products?

a- suppliers b- employees c- target consumers d- manufacturers e- competitors

12) After concept testing, a firm would engage in which stage in developing and marketing a new product? . a- idea screening b- marketing strategy development c- business analysis d- product development e- test marketing

13) The second part of the marketing strategy statement outlines the product's planned price, distribution, and ________ for the first year. .... . a- advertising b- promotion c- marketing budget d- positioning e- target market .

14) A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________. ......... a-business feasibility plan b-market strategy development c- business analysis d- product acceptance e- proposal

15) Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process. .....

a-business feasibility b-feasibility study c- business analysis d- product acceptance e- concept testing

1) The search for new-product ideas should be ________ rather than ________. ........... a- intermittent; continuous b-systematic; haphazard c-segmented; holistic d-impulsive; strategic : : : : :

e- employee-centered; customer-centered

2) ________ is the product life cycle period when sales fall off and profits drop. ..... a-Introduction b- Growth

c- Maturity d- Decline e- Development

3) Which stage of the typical consumer product life cycle is out of order below?

a-product development b-introduction c- maturity d- growth e- decline

4) Some products that have entered the decline stage have been cycled back to the growth stage through ________. ........ a-repositioning b- concept testing c- business analysis d-innovation management e- customer-centered product development

5) All of the following are accurate descriptions of a style, EXCEPT which one? . a- Styles appear in home, clothing, and art. b- Once a style is invented, it may last for generations. c- A style has a cycle showing several periods of renewed interest.

d- Styles last only a short time and tend to attract only a limited following.

e- Styles are basic and distinctive modes of expression.

6) Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n) ________ of the product's life cycle. ..... ........... : : : : :

a- mirror image; cause b- cause; result c- result; mirror image d- beginning; end e- purpose; effect

7) In which stage of the PLC would promotional expenditures most likely increase as a company attempts to react to increasing competition?

a-product development b- introduction c- growth d- maturity e- decline

8) Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?

a- introduction b- growth c- maturity d- decline e- phase-in

9) Which of the following would lead to greater competition in the maturity stage of the PLC?

a-overcapacity of products in the market b- market pioneers c- poor management d-inadequate promotion e-diminishing budgets

10) Which of the following best represents the options a company has when a product is declining?

a-maintain or harvest the product b- harvest or drop the product c- maintain, harvest, or drop the product d- maintain or pioneer the product e- pioneer, harvest, or maintain the product .

11) Carrying a weak product during the decline stage of the PLC can be very costly to a firm, and not just in profit terms. Which one of these is NOT likely to be one of those costs?

a-takes up much of management's time b-frequent price and inventory adjustment c-requires advertising and sales force attention d- few customer concerns about company image e- all of the above

12) Which of the following best describes the role of a product steward?

a-to protect consumers from harm b-to evaluate new-product ideas against a set of general criteria

c-to develop a product concept into a physical product d- to protect the company from liability by identifying and solving potential product problems

e- to protect consumers from harm and to protect the company from liability by identifying and solving potential product problems

13) Because names, labels, and colors may not easily translate from one country to another, international marketers must carefully assess ________. ..... a-product safety regulations b- market rollout c-the product life cycle d-packaging e-styles

14) Up to 80 percent of all consumer products fail or dramatically underperform. (1point) 80 a- True b- False

15) Malibu Beach Parties finds that the tastes and preferences of its customers change more rapidly than in the past. The manager should constantly look for external ideas from customers, suppliers, the competition, and the sales force. (1point)

a- True

b- False

1) When a company decides to maintain a product in the decline stage, it will reduce costs and hope that sales hold up to increase the profits in the short run. (1point)

a- True

b- False

2) A warranty is designed to protect consumers from harm and the company from liability. (1point)

a- True

b- False

3) The international growth of many professional and business services such as accounting, consulting, and advertising led to the globalization of the client companies they serve. (1point)

a- True

b- False

4) Briefly describe the steps in the new-product development process.

5) Distinguish among a product idea, a product concept, and a product image.

6) Define commercialization. Explain the two important issues on which the company must decide during this stage. . 7) Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each step in the PLC . . 8) Describe three public policy issues or regulations that marketers should carefully consider as they make decisions about adding or dropping products.

9) Which of the following is the most likely reason that employees at your firm regularly attend trade shows and seminars?

a- to analyze the product life cycle b- to test new-product concepts c- to get new-product ideas d- to test market new products e- to implement a team-based new-product development approach

10) JoAnn Fabrics, Inc., has just created a new combination of colors and fabric types. The firm wants to be sure of the way consumers perceive its new product. The firm is concerned with the product ________. . ........... a-idea

b- concept c-image d- proposal e- presentation 11) Wainwright Industries will build a new prototype riding lawnmower especially for women. In the product development stage, Joe Wainwright and his staff will incorporate the functional features and convey the ________.

.............. a- marketing strategy b-advertising c-safety features d- intended psychological characteristics e- warranty offering

12) Altas Steel Corporation lacks the confidence, capital, and capacity to launch its new steel product into full national or international distribution. Even though test market results look promising, what will most likely be management's next step? . . a-retest the product in additional markets b- develop a planned market rollout over time c-secure a loan to provide confidence, capital, and capacity d-seek the help of a nationally known consultant e- develop a prototype

13) Sherri's Exclusives sells currently accepted and popular clothing items in given fields. What does she stock in her store?

a-styles b- fashions c- fads d- exclusives e- services

14) Big Moose Toys is a market pioneer introducing a modern version of Bullwinkle the Moose, a character from an animated television series originally broadcast in the 50s and 60s. The company's version of Rocky the Flying Squirrel, another character from the show, targeted to baby boomers was a strong success. They need to make the new launch strategy for Bullwinkle consistent with the intended ________.

. ......... a- pricing b- product position c- brand extension d- prototype e-fad

60 50

15) Mattel's Barbie is an example of an age-defying product. Barbie, simultaneously timeless and trendy, is in the ________ stage of the PLC. ........... .

a-introduction b- growth c- maturity d-decline e- adoption

16) Apple's iPod has been called "one of the greatest consumer electronics hits of all time." More than 120 million iPods have been sold, and the iPod captures more than 70 percent of the music player market. This success has attracted many large, resourceful competitors. The iPod is in the ________ stage of the product life cycle.

120 ...... .

. . 70

a-introduction b- product development c- maturity d- decline e- adoption

17) Proctor & Gamble has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter. In these examples, management decided to ________ the products.

........... a- further test b- maintain c- drop d- harvest e- ignore the test market results of

18) CellTones, a new company selling several lines of cellular phones, has closely modeled its products after successful products that are already in the marketplace. As it prepares to enter the market with its new products and services, which of the following should concern CellTones the most? .

a-legal obligations to suppliers and dealers b- patent laws c-the Federal Food, Drug, and Cosmetic Act d-product liability suits e-limited warranties

19) How might competitors be a good external idea source?

20) Using the R-W-W new-product screening framework, marketers first ask "Is it real?" Explain what . 21) What is the advantage of using a concrete and physical presentation of the product concept in the concept testing stage of new-product development?

22) What may be learned in a test market? 23) A marketer has chosen a multiple-city test market. What might we conclude from this choice of a multiple-city test market? . 24) Why might a company choose to develop a planned market rollout?

25) Explain how the PLC applies differently to a product class than to a product form.

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