New Product Flashcards
Like all aspects of modern business, product development has become more chal- lenging due to increased g________.
Globalization
Which type of new product creates an entirely new market and is considered an invention?
a) Additions to existing product lines
b) New-to-the-firm products
c) New-to-the-world products
d) Cost reductions
c) New-to-the-world products
What type of new product takes a company into a product category it has never entered before, even though the product already exists in the market?
a) New-to-the-world products
b) New-to-the-firm products
c) Repositionings
d) Improvements and revisions
b) New-to-the-firm products
A company introduces a “flanker” brand or a line extension to expand its current product offerings. What type of new product is this?
a) Additions to existing product lines
b) Cost reductions
c) Repositionings
d) New-to-the-world products
a) additions to existing product lines
Company decides to market an existing product for a completely different use or to a new target market. What type of new product strategy is this?
a) Cost reductions
b) Repositionings
c) Additions to existing product lines
d) Improvements and revisions
c) Improvements and revisions to existing products
If a company modifies and enhances an existing product to improve its quality or performance, what type of new product does this represent?
a) Cost reductions
b) Repositionings
c) Improvements and revisions to existing products
d) New-to-the-firm products
b. repositionings
If a firm creates a product that replaces an existing one by offering similar performance at a lower price, what type of new product does this represent?
a) New-to-the-world products
b) Cost reductions
c) Repositionings
d) Improvements and revisions
c. cost reduction
How do managers typically define the term “invention”?
a) The process of transforming an idea into a profitable product
b) The uniqueness of form, formulation, or function, often patentable
c) The marketing strategy behind a new product
d) The act of selling a newly developed product
b) The uniqueness of form, formulation, or function, often patentable
What distinguishes “innovation” from “invention”?
a) Innovation is a unique creation, while invention is the commercialization process
b) Invention is turning an idea into a commercial product, while innovation is the patenting process
c) Invention is the creation of something new, while innovation is its transformation into a profitable product
d) Innovation refers only to technological advancements, while invention refers to business strategies
c) Invention is the creation of something new, while innovation is its transformation into a profitable product
What is the new products process?
a) A marketing strategy for promoting new products
b) The procedure that takes a new product idea through concept evaluation, development, launch, and postlaunch
c) A financial assessment of new product investments
d) A customer feedback process for existing products
b) The procedure that takes a new product idea through concept evaluation, development, launch, and postlaunch
How is the new products process typically structured?
a) As a random series of steps with no clear phases
b) As a phased process with evaluative steps between phases
c) As a single-step process that goes directly from idea to launch
d) As a trial-and-error approach without clear evaluations
b) As a phased process with evaluative steps between phases
What is the purpose of the Product Innovation Charter (PIC)?
a) To outline marketing tactics for launching a product
b) To set financial goals for product sales
c) To ensure new products align with firm objectives and marketplace opportunities
d) To determine the price of a new product
c) To ensure new products align with firm objectives and marketplace opportunities
Why is the new products process rarely straightforward?
a) Because companies often skip steps
b) Because product development involves many unpredictable factors
c) Because it doesn’t include concept evaluation
d) Because companies do not use formal strategies for product launches
b) Because product development involves many unpredictable factors
What is the first phase of the new product process?
a) Concept Generation
b) Opportunity Identification/Selection
c) Development
d) Launch
b) Opportunity Identification/Selection
During which phase are ideas for new products brainstormed and created?
a) Opportunity Identification/Selection
b) Concept/Project Evaluation
c) Concept Generation
d) Development
c) Concept Generation
What is the purpose of the Concept/Project Evaluation phase?
a) To determine which product ideas are viable and worth developing
b) To manufacture the new product
c) To launch the new product in the market
d) To generate ideas for new product lines
a) To determine which product ideas are viable and worth developing
In which phase does the actual design and creation of the new product take place?
a) Concept Generation
b) Development
c) Opportunity Identification/Selection
d) Concept/Project Evaluation
b) Development
What is the final phase of the new product process?
a) Development
b) Launch
c) Concept Generation
d) Project Evaluation
b) Launch
What does the Product Innovation Charter (PIC) primarily provide?
a) A detailed design of a new product
b) Guidelines for innovation and new product development
c) A step-by-step marketing plan for new products
d) Financial projections for new product launches
b) Guidelines for innovation and new product
Who is responsible for developing the Product Innovation Charter (PIC)?
a) The product development team
b) Senior management
c) The marketing department
d) External consultants
b) Senior management
How does the PIC help in new product development?
a) It ensures the product meets all legal requirements
b) It defines the scope and focus of innovation efforts
c) It selects the final product for launch
d) It determines the exact pricing strategy for new products
b) It defines the scope and focus of innovation efforts
One of the key benefits of the PIC is that it:
a) Increases the number of projects pursued, regardless of their value
b) Ensures all new product ideas come from external sources
c) Helps the team focus on high-value opportunities within the firm’s strategy
d) Guarantees the immediate success of every new product
c) Helps the team focus on high-value opportunities within the firm’s strategy
The boundaries set by the PIC help the product team:
a) Identify relevant opportunities and focus their efforts
b) Avoid collaboration with other functional areas
c) Limit their innovation only to existing product lines
d) Skip the evaluation phase of new product development
a) Identify relevant opportunities and focus their efforts
