Ch. 8

Question 1

What are possible idea sources?

Answer 1

internal ideas, competitors, distributers and suppliers, customers

Question 2

Crowdsourcing

Answer 2

Inviting broad communities of
people—customers, employees,
independent scientists and researchers,
and even the public at large—into the
new product innovation process.

Question 3

Idea screening

Answer 3

Screening new product ideas to spot
good ones and drop poor ones as soon
as possible.

Question 4

Product concept

Answer 4

A detailed version of the new
product idea stated in meaningful
consumer terms.

Question 5

Concept testing

Answer 5

Testing new product concepts with
a group of target consumers to find
out if the concepts have strong
consumer appeal.

Question 6

Marketing strategy development

Answer 6

Designing an initial marketing
strategy for a new product based
on the product concept.

Question 7

marketing strategy statement consists of three parts. What are they?

Answer 7

The first part describes the target market; the planned value proposition; and the sales, market-share, and profit goals
for the first few years.
The second part of the marketing strategy statement outlines the product’s planned price, distribution, and marketing budget for the first year
The third part of the marketing strategy statement describes the planned long-run sales, profit goals, and marketing mix strategy

Question 8

Business analysis

Answer 8

A review of the sales, costs, and profit
projections for a new product to find
out whether these factors satisfy the
company’s objectives.

Question 9

Product development

Answer 9

Developing the product concept into
a physical product to ensure that the
product idea can be turned into a
workable market offering

Question 10

Test marketing

Answer 10

The stage of new product development
in which the product and its proposed
marketing program are tested in
realistic market settings.

Question 11

Commercialization

Answer 11

Introducing a new product into the

market

Question 12

Customer-centered new product

development

Answer 12

New product development that focuses
on finding new ways to solve customer
problems and create more customer satisfying
experiences.

Question 13

Team-based new product

development

Answer 13

used to get new products to market faster
New product development in which
various company departments work
closely together, overlapping the steps
in the product development process to
save time and increase effectiveness

Question 14

innovation management system

Answer 14

to collect, review, evaluate, and manage new product ideas.

Question 15

PLC

Answer 15

Product life cycle (PLC)

The course of a product’s sales and profits over its lifetime.

Question 16

Product development

Answer 16

begins when the company finds and develops a new product
idea. During product development, sales are zero, and the company’s investment
costs mount

Question 17

5 steps of product life cycle

Answer 17

product developement, Introduction, growth, maturity, decline

Question 18

Introduction

Answer 18

is a period of slow sales growth as the
product is introduced in the market. Profits are nonexistent
in this stage because of the heavy expenses of
product introduction.

Question 19

Growth

Answer 19

is a period of rapid market acceptance and
increasing
profits.

Question 20

Maturity

Answer 20

is a period of slowdown in sales growth because
the product has achieved acceptance by most
potential buyers. Profits level off or decline because
of increased marketing outlays to defend the product
against competition

Question 21

Decline

Answer 21

is the period when sales fall off and profits drop

Question 22

what 3 concepts can describe the product life cycle?

Answer 22

PLC concept can describe a product class (gasolinepowered
automobiles), a product form (SUVs), or a brand (the
Ford Escape).

Question 23

Product classes have

Answer 23

the longest life cycles; the sales of many

product classes stay in the mature stage for a long time.

Question 24

Product forms,

Answer 24

tend to have the standard PLC shape. Product
forms such as “dial telephones” and “VHS tapes” passed
through a regular history of introduction, rapid growth, maturity, and decline

Question 25

A specific brand’s life cycle can

Answer 25

change quickly because of changing competitive

attacks and responses,

Question 26

Style

Answer 26

A basic and distinctive mode of

expression.

Question 27

Fashion

Answer 27

A currently accepted or popular style in

a given field.

Question 28

Fad

Answer 28

A temporary period of unusually high
sales driven by consumer enthusiasm
and immediate product or brand
popularity.

Question 29

Introduction stage

Answer 29

The PLC stage in which a new product
is first distributed and made available
for purchase.

Question 30

Growth stage

Answer 30

The PLC stage in which a product’s

sales start climbing quickly.

Question 31

Maturity stage

Answer 31

The PLC stage in which a product’s

sales growth slows or levels off.

Question 32

modifying the market,

Answer 32

the company tries to increase consumption by finding new users and new market segments for its brand

Question 33

Decline stage

Answer 33

The PLC stage in which a product’s

sales fade away.