Chapter 8: Developing the product, service, and value of the offering

Question 0

Customers acquire technology for its ________ and not for the technology itself

Answer 0

Customers acquire technology for the solution value

Question 1

What is the largest single reason for the failure of new products ans services in the marketplace?

Answer 1

a lack of thoroughly developed and executed marketing plans

Question 2

When do profits classically peak in the product life cycle?

Answer 2

During the late-growth/early maturity time frame

Question 3

In slow changing markets periods of viable application are usually _____ for products

Answer 3

Longer

Question 4

What are the five stages o the PLC?

Answer 4

Development
Introduction
Growth 
maturity
decline

Question 5

In this stage of the PLC, the product is not completely defined and profits do not exist yet while a target price or value point is being considered.

Answer 5

Development Stage

Question 6

In this stage, profits are negative or break through to positive near the end of the stage. The product is somewhat basic and comptition has yet to force a need for differentiation

Answer 6

introduction stage

Question 7

The logistical process experiences a significant learning curve as many of the elements of a new offering have ben outsourced as the result of a ______ or ______ value network

Answer 7

Unique or first time

Question 8

In what stage of the PLC is pricing strategy more about positioning in the market rather than profitability?

Answer 8

Introduction Stage

Question 9

In this stage of the PLC, profits are increasing rapidly s new customers accept the product. The need for product differentiation becomes apparent. market penetration pricing may be appropriate as competition puts pressure on high margins.

Answer 9

Growth Stage

Question 10

In what stage have the early majority or pragmatists accepted the product

Answer 10

Growth stage

Question 11

IN this stage of the PLC, products have become standards in the business-to -business markets. The market owner is beginning replacement of the offering. Promotion is used to reinforce the buying decision.

Answer 11

maturity stage

Question 12

in what stage does price become a more important part of the marketing mix

Answer 12

Maturity stage

Question 13

In what stage do less competitive and weaker competitors drop out of the market through consolidation or leaving the industry?

Answer 13

decline stage

Question 14

In this stage price and long term contracts become a major part of the marketing mix

Answer 14

decline stage

Question 15

In what stage is promotion reduced to minimal levels

Answer 15

decline stage

Question 16

How can marketers ensure that the customer relationship is not damaged when eliminating a product?

Answer 16

Divesting the product, selling the business to the customer, introducing the customer to the remaining suppliers

Question 17

What are the steps in the basic new product development process?

Answer 17

1. Ideas generation
2. Product Screening
3. Business case analysis
4. Product /Strategy/Plan development
5. Test market
6. product launch
7. hand off to the innovation translation/customer education team

Question 18

What type of organization looks to customer needs for new product ideas?

Answer 18

An organization operating under the marketing concept

Question 19

What must be signed when customers working with suppliers in development want assurance that the supplier is not taking any product or market information to competitors?

Answer 19

proprietary disclosure agreements

Question 20

This approach is used to validate a new market segment. When new business is realized as a result of collaboration with a customer, the product is a customized offering.

Answer 20

Innovation translation approach

Question 21

customer orientation maximizes what?

Answer 21

customer input in the product creation process

Question 22

The engineering approach has a ___ focus that often ignores potential market

Answer 22

narrow

Question 23

Checkpoints after each stage of the product development process.

Answer 23

Stage gates

Question 24

Firms that are first to market with a new product have an _____ advantage

Answer 24

exploitable

Question 25

The measurement of those opportunities that are not pursued because resources have been committed to the new product development

Answer 25

Opportunity cost

Question 26

What is often the most deficient part of a new product plan

Answer 26

The marketing effort

Question 27

Product funds are often used to validate technological assumptions bu not ______ assumptions

Answer 27

marketing

Question 28

What is the biggest reason for new product failures?

Answer 28

No real need exists for the product

Question 29

What is the second most reason for new product failure?

Answer 29

Inability of “me too” products to penetrate existing markets

Question 30

Those who work with the enemy for their own short-term benefit

Answer 30

collaborators

Question 31

data that while not protected by patents is not available to the general public and has significant value to the owner

Answer 31

proprietary information