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


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

  1. 1. What are the two ways thata company can obtain newproducts? internal development and merger line extension and brand management new-product development and acquisition market mix modification and research and development service development and product extension Which of the following is not a potential cause of the failure of a new product? an incorrectly positioned product an underestimated market size higher than anticipated costs of product development a poorly designed product ineffective advertising The creation of a successful new product depends on a companys understanding of its ________ and its ability to deliver ________ to customers. product, marketing mix, and marketing strategy; functional features competitors, distributors, and employees; new styles product life cycle, legal responsibilities, and social responsibilities; innovations customers, brands, products; product images customers, competitors, and markets; superior value Executives, manufacturing employees, and salespeople are all examples of ________.
  2. 2. new-product committee members internal sources for new-product ideas external sources for new-product ideas core members of innovation management systems research and development team membersWhich of the following is perhaps the most important external sourceof new-product ideas? customers trade magazines, shows, and seminars distributors and suppliers competitors engineersYour firm wants to use external sources for new product ideas. Afterconsulting with a friend you learn that all of the following are commonexternal sources except ________. trade shows and magazines suppliers the firms executives competitors customersGrayBerry Gifts has just brainstormed a large number of ideas foradding new products and services after visiting several buying fairs.The owners will begin the first idea-reducing stage, called ________ ,to arrive at a realistic number to adopt.
  3. 3. product concept idea dissemination idea screening idea generation concept developmentA detailed version of a new idea stated in meaningful customer termsis called a ________. product idea product movement product image product concept product proposalAn attractive idea must be developed into a ________. product concept product strategy test market product idea product imageIn the concept testing stage of new-product development, a productconcept in ________ form is presented to groups of target consumers. prototype final
  4. 4. commercial physical or symbolic market-testedAfter concept testing, a firm would engage in which stage indeveloping and marketing a new product? test marketing idea screening product development marketing strategy development business analysisThe second part of the marketing strategy statement outlines theproducts planned price, distribution, and ________ for the first year. positioning promotion advertising target market marketing budgetDuring which stage of new-product development is management mostlikely to estimate minimum and maximum sales to assess the range ofrisk in launching a new product? product development concept testing business analysis
  5. 5. test marketing marketing strategy developmentIn the ________ stage of new-product development, products oftenundergo rigorous tests to make sure that they perform safely andeffectively or that consumers will find value in them. concept development and testing idea generation business analysis product development marketing mixUnder what circumstances might it be wise for a company to do littleor no test marketing? When management is not sure of the product. When the product has no substitutes and is new in its category. When the costs of developing and introducing the product are low. When management is not sure of the marketing program. When a new product requires a major investment.The major purpose of test marketing is to provide management withthe information needed to make a final decision about ________. how to compete in the market whether to launch the new product how long to compete in the market how to develop a market strategy
  6. 6. which market to compete inWhich of the following costs is most likely associated with thecommercialization stage of new-product development? developing a prototype of the product paying groups of target consumers for product feedback building or renting a manufacturing facility identifying target markets determining the products planned price, distribution, and marketing budgetWhich of the following is necessary for successful new-productdevelopment? a customer-centered, team-based, systematic approach a market pioneer mindset and a holistic approach an innovation management system and sequential product development a holistic and sequential product development approach a team-based, innovation-management approach________ is a new-product development approach in which onecompany department works to complete its stage of the process beforepassing the new product along to the next department and stage. Product life-cycle analysis Sequential product development Simultaneous product development Team-based product development Micromarketing
  7. 7. The team-based new-product development approach is faster becausedepartments work closely together through _______. team efforts the help of a consultant cross-functional teams departmentalization a step-by-step processWhich of the following is a disadvantage of a team-based approach tonew-product development? Levels of risk can be more easily controlled. The process does not work with the shorter life cycles of many of todays products. The development effort is not as effective because of team members lack of expertise. Organizational confusion and tension can be a part of the process. It takes longer to get the right products to market.The search for new-product ideas should be ________ rather thanhaphazard. systematic segmented intermittent strategically planned seldom
  8. 8. Increasing profits will most likely occur at which stage of the PLC? growth introduction product development maturity declineWhich of the following cannot be described by the PLC concept? product form product image styles product class brandThe PLC concept can be applied by marketers as a useful frameworkfor describing how ________. product ideas are developed to forecast product performance products and markets work to develop marketing strategies concept testing is conductedIn the ________ stage, the firm faces a trade-off between high market
  9. 9. share and high current profit. growth introduction commercialization maturity declineIn which stage of the PLC will promotional expenditures be high in anattempt to react to increasing competition? product development growth introduction maturity declineWhich stage in the PLC normally lasts longer and poses strongchallenges to the marketing managers? decline growth phase-in maturity introductionMost products in the marketplace are in the ________ stage of theproduct life cycle. growth
  10. 10. development maturity decline introductionSales decline in the decline stage of the PLC because of technologicaladvances, increased competition, and ________. shifts in the economy new market pioneers marketing mix modifications shifts in unemployment shifts in consumer tastes and preferencesA manufacturer with a product in the decline stage of the product lifecycle might decide to ________ if it has reason to hope thatcompetitors will leave the industry. harvest the product maintain the product without change drop the product delay planning search for replacementsThe advantages of standardizing an international product include all ofthe following except ________. lower marketing costs the development of a consistent image
  11. 11. decreased manufacturing costs the adaptation of products to different markets lower product design costsSchmidt Steel Corporation lacks the confidence, capital, and capacityto launch its new steel product into full national or internationaldistribution. Even though test market results look promising, what willbe managements next step? develop a planned market rollout over time secure a loan to provide confidence, capital, and capacity develop a prototype retest the product in additional markets seek the help of a nationally known consultantMattels Barbie is an example of an age-defying product. Barbie,simultaneously timeless and trendy, is in the ________ stage of thePLC. introduction growth maturity decline adoption