Exam 3 - Chp 11

Question 1

New product

Answer 1

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

Question 2

New Product strategy

Answer 2

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

Question 3

Product Development

Answer 3

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

Question 4

Brainstorming

Answer 4

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

Question 5

Screening

Answer 5

The first filter in the product development process, which eliminate ideas that are inconsistent with the organizations new product strategy or are obviously inappropriate for some other reason

Question 6

concept test

Answer 6

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

Question 7

Business Analysis

Answer 7

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

Question 8

Development

Answer 8

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

Question 9

Simultaneous Product Development

Answer 9

A team-oriented approach to new-product development.

Question 10

Test Marketing

Answer 10

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

Question 11

Simulated (Laboratory) Market Testing

Answer 11

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

Question 12

Commercialization

Answer 12

The decision to market a product

Question 13

Adopter

Answer 13

A consumer who was happy enough with his or her trial experience with a product to use it again.

Question 14

Innovation

Answer 14

A product perceived as new by a potential adopter.

Question 15

Diffusion

Answer 15

The process by which the adoption of an innovation spreads.

Question 16

Product Life Cycle (PLC)

Answer 16

A biological metaphor that traces the stages of a product’s acceptance, from its introduction (birth) to its decline (death).

Question 17

Product Category

Answer 17

All brands that satisfy a particular type of need.

Question 18

Introductory Stage

Answer 18

The first stage of the product life cycle in which the full-scale launch of a new product into the marketplace occurs.

Question 19

Growth Stage

Answer 19

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

Question 20

Maturity Stage

Answer 20

The third stage of the product life cycle during which sales increase at a decreasing rate.

Question 21

Decline Stage

Answer 21

The fourth stage of the product life cycle, characterized by a long-run drop in sales.