Developing and Managing Products

Question 1

New products are important to (3)

Answer 1

sustain growth, increase revenues and profits, and replace obsolete items

Question 2

a product new to the world, the market, the producer, the seller, or some combination of these

Answer 2

new product

Question 3

a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation

Answer 3

new-product strategy

Question 4

a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products

Answer 4

product development

Question 5

the process of getting a group to think of unlimited ways to vary a product or solve a problem

Answer 5

brainstorming

Question 6

the first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s new-product strategy or are obviously inappropriate for some other reason

Answer 6

screening

Question 7

a test to evaluate a new product idea, usually before any prototype has been created

Answer 7

concept test

Question 8

the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated

Answer 8

business analysis

Question 9

the stage in the product development process in which a prototype is developed and a marketing strategy is outlined

Answer 9

development

Question 10

a team-oriented approach to new-product development

Answer 10

simultaneous product development

Question 11

the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

Answer 11

test marketing

Question 12

the presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market

Answer 12

simulated (laboratory) market testing

Question 13

the decision to market a product

Answer 13

commercialization

Question 14

a product perceived as new by a potential adopter

Answer 14

innovation

Question 15

the process by which the adoption of an innovation spreads

Answer 15

diffusion

Question 16

five product characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product

Answer 16

complexity
compatibility
relative advantage
observability
trialability

Question 17

a concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)

Answer 17

product life cycle (PLC)

Question 18

all brands that satisfy a particular type of need

Answer 18

product category

Question 19

the full-scale launch of a new product into the marketplace

Answer 19

introductory stage

Question 20

the second stage of the product life cycle when sale typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy

Answer 20

growth stage

Question 21

a period during which sale increase at a decreasing stage

Answer 21

maturity stage

Question 22

a long-run drop in sales

Answer 22

decline stage

Question 23

Five categories of adopters that participate in the diffusion process

Answer 23

Innovators
Early adapters
Early majority
Late majority
Laggards