Transcript Slide 1

CHAPTER 8
CRS Questions & Answers
NEW-PRODUCT DEVELOPMENT
AND PRODUCT LIFE-CYCLE
STRATEGIES
“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
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“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.
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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
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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.
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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
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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.
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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
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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.
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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
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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.
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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.
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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.
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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
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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.
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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
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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.
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