chapter 4

Question 1

What is product or service development?

Answer 1

Product or service development is the complete process of bringing a new product or service to market, including idea generation, design, engineering, market research, and analysis.

Question 2

The new product development process involves ______, _______, and _______.

Answer 2

Idea generation, market research, and product design.

Question 3

Product design must be practical enough for ______ and powerful enough for ______.

Answer 3

Production, performance.

Question 4

List the four distinct stages in the product/service generation process.

Answer 4

1. Idea Generation
2. Incubation
3. Implementation
4. Diffusion

Question 5

What is the purpose of idea screening?

Answer 5

The purpose of idea screening is to evaluate and filter ideas to identify the most promising ones.

Question 6

Attractive ideas must be able to produce ______ since people don’t buy ideas but purchase ______.

Answer 6

Product concepts, concepts.

Question 7

What are the three groups for idea screening?

Answer 7

Promising, marginal, and rejects.

Question 8

______ involves presenting the product concept to target consumers to gather feedback and assess its potential market success.

Answer 8

Concept testing

Question 9

List and explain the three parts of a marketing strategy plan.

Answer 9

Market size: The target market’s size and potential.

Planned price: The intended pricing strategy for the product.

Long run sales: Projections for long-term sales and profitability.

Question 10

What is business analysis in the context of product development?

Answer 10

Business analysis involves estimating total sales, costs, and profits to determine if the new product will be financially viable.

Question 11

Estimated total sales are calculated based on ______ and ______.

Answer 11

Market analysis, sales projections.

Question 12

What is breakeven analysis?

Answer 12

Breakeven analysis is determining the point at which total revenues equal total costs, meaning no profit or loss.

Question 13

Breakeven can be used as a financial measure to evaluate the merit of a new product proposal.

Answer 13

t

Question 14

What is the goal of product development?

Answer 14

The goal is to design and create a functional and marketable product that meets customer needs and business objectives.

Question 15

Where are functional tests conducted?

Answer 15

Functional tests are conducted in laboratories.

Question 16

Where are consumer tests conducted?

Answer 16

Consumer tests are conducted in real-world environments to gather user feedback.

Question 17

What is the goal of market testing?

Answer 17

The goal of market testing is to evaluate the product’s market performance and gather feedback to refine the product before a full-scale launch.

Question 18

How can market testing be useful?

Answer 18

Market testing can identify potential issues, assess market acceptance, and optimize marketing strategies.

Question 19

What are the three choices a company has if its competitor is entering the market?

Answer 19

First entry, late entry, and parallel entry.

Question 20

What are the advantages of the late entry strategy?

Answer 20

Advantages include learning from the first entrant’s mistakes and entering the market with a refined and improved product.

Question 21

What are the advantages of the first entry strategy?

Answer 21

Advantages include establishing brand recognition and customer loyalty before competitors enter the market.

Question 22

What is intellectual property protection?

Answer 22

Intellectual property protection involves securing legal rights for inventions, designs, and artistic works to prevent unauthorized use by others.

Question 23

What is a patent?

Answer 23

A patent is a contract between an inventor and the government granting the inventor exclusive rights to benefit from their invention in exchange for disclosing it to the public.

Question 24

Patents can be ______, _______, _______, and used as ______.

Answer 24

Sold, transferred, licensed, collateral.

Question 25

What can be patented?

Answer 25

Processes, machines, manufacturers, and compositions of matter.

Question 26

What is a utility patent, and what does it protect?

Answer 26

A utility patent protects the functional aspects of an invention, covering new and useful processes, machines, manufactures, or compositions of matter, or any new and useful improvement thereof.

Question 27

What is a design patent, and what does it protect?

Answer 27

A design patent protects the ornamental design of an object, meaning it covers the way a product looks, not its function or structural features

Question 28

What are trademarks?

Answer 28

Trademarks are symbols, names, and slogans used to distinguish products or services of a particular company from others.

Question 29

Unlike ______ , ______ can last Indefinitely

Answer 29

patents, trademarks

Question 30

What are copyrights?

Answer 30

Copyrights protect the original works of authorship, including literary, dramatic, musical, and artistic works.

Question 31

When did Ethiopia join the World Intellectual Property Organization (WIPO)?

Answer 31

Ethiopia joined WIPO in 1998.

Question 32

When did the Ethiopian government establish the Intellectual Property Office?

Answer 32

The Ethiopian government established the Intellectual Property Office in 2003.

Question 33

What are the existing laws and directives in Ethiopia in the field of intellectual property.

Answer 33

Patent proclamation,
copyrights related rights proclamation, and trademark registration directive.

Question 34

According to the proclamation, what are the three requirements for a patent?

Answer 34

Novelty: The invention must be new. It should not be known or used by others before the filing date.

Inventive Step: The invention must be non-obvious. It should not be something that an expert in the field could easily deduce.

Industrial Applicability: The invention must be useful. It should be capable of being made or used in some kind of industry.

Question 35

The proclamation excludes the following from patentability: ______, _______, and ______.

Answer 35

Discoveries, scientific theories, mathematical methods.

Question 36

What is the duration of a patent in Ethiopia?

Answer 36

The duration of a patent is 15 years from the filing date. Plus additional 5 Years extension

Question 37

What are the objectives of the trademark directive?

Answer 37

The objectives include protecting the exclusive rights of trademark owners and ensuring fair competition in the market.

Question 38

Copyrights in Ethiopia are protected for the life of the author plus ______ years for performers and ______ years for broadcasting operations.

Answer 38

50, 20.