New-Product Development and Product Life-Cycle Strategies

Question 1

Two ways to obtain new products

Answer 1

Acquisition
New product development

Question 2

buying of a whole company / patent / license

Answer 2

Acquisition

Question 3

original products, product improvements, product
modifications, and new brands developed

Answer 3

New Product Development

Question 4

original products, product improvements, product
modifications, and new brands developed

Answer 4

New Product Development

Question 5

Major Stages in New-Product Development

Answer 5

Idea Generation
Idea Screening
Concept development and testing
Marketing Strategy Development
Business Analysis
Product Development
Test Marketing
Commercialization

Question 6

systematic search for new-product ideas

Answer 6

Idea Generation

Question 7

Sources of new-product ideas

Answer 7

Internal
External

Question 8

company’s own formal R&D

Answer 8

Internal Sources

Question 9

sources outside the company

Answer 9

External sources

Question 10

inviting broad communities of people

Answer 10

Crowdsourcing

Question 11

Identify good ideas and drop poor ideas

Answer 11

Idea Screening

Question 12

• Is it real?
• Can we win?
• Is it worth doing?

Answer 12

RWW Screening Framework

Question 13

possible product that the company can see itself

Answer 13

Product Idea

Question 14

detailed version of the idea

Answer 14

Product Concept

Question 15

consumers perceive an actual / potential product

Answer 15

Product Image

Question 16

Testing new-product concepts w/ groups of target consumers

Answer 16

Concept Testing

Question 17

Initial marketing strategy for introducing the product to the market

Answer 17

Marketing Strategy Development

Question 18

Marketing Strategy statement includes:

Answer 18

• Description of the target market
• Value proposition
• Sales and profit goals

Question 19

a review of the sales, costs, and profit projections

Answer 19

Business Analysis

Question 20

Creation and testing of one or more physical versions by the R&D

Answer 20

Product Development

Question 21

requires an increase in investment

Answer 21

Product Development

Question 22

Shows if: Can be turned into a workable product

Answer 22

Product Development

Question 23

Product and marketing program are introduced into more realistic marketing settings

Answer 23

Test Marketing

Question 24

Provides the marketer with experience in testing the product

Answer 24

Test Marketing

Question 25

Types of Test Markets

Answer 25

- Standard test - Controlled - Simulated

Question 26

Advantages of simulated test markets

Answer 26

- Less expensive - Faster - Restricts access by competitors

Question 27

Disadvantages of simulated test markets

Answer 27

Not reliable and accurate due to the controlled setting

Question 28

When firms test market:

Answer 28

- New product with large investment - Uncertainty about product or marketing

Question 29

When firms may not test market:

Answer 29

- Simple line extension - Copy of competitor product - Low costs - Management Confidence

Question 30

the introduction of the new product

Answer 30

Commercialization

Question 31

- When to launch - Where to launch - Planned market rollout

Answer 31

Commercialization

Question 32

Successful new-product development should be:

Answer 32

- Customer-centered - Team-based - Systematic

Question 33

New ways to solve customer problems and create more customer-satisfying experience

Answer 33

Customer-centered New Product Development

Question 34

company departments work closely together individually to complete each stage of the process

Answer 34

Sequential New-Product Development

Question 35

Increased control in risky or complex projects but may be slow

Answer 35

Sequential New-Product Development

Question 36

Company departments work closely together in cross-functional teams, overlapping in the product-development process to save time and increase effectiveness

Answer 36

Team-based New-Product Development

Question 37

Creates an innovation-oriented culture

Answer 37

Systematic New-Product Development

Question 38

Yields a large number of new-product ideas

Answer 38

Systematic New-Product Development

Question 39

Product Life-Cycle Strategies (PIGMD)

Answer 39

Product development Introduction Growth Maturity Decline

Question 40

Sales are zero and investment costs mount

Answer 40

Product development

Question 41

Slow sales growth and profits are nonexistent

Answer 41

Introduction

Question 42

Rapid market acceptance and increasing profits.

Answer 42

Growth

Question 43

Slowdown in sales growth and profits level off or decline

Answer 43

Maturity

Question 44

Sales fall off and profits drop

Answer 44

Decline

Question 45

Temporary periods of unusually high sales

Answer 45

Fads

Question 46

Slow sales growth Little or no profit High distribution and promotion expense

Answer 46

Introduction Stage

Question 47

Sales increase New competitors enter the market Price stability or decline to increase volume Consumer education Profits increase Promotion and manufacturing costs gain Economies of scale

Answer 47

Growth Stage

Question 48

Slowdown in sales Many suppliers Substitute products Overcapacity leads to competition Increased promotion and R&D to Support sales and profits

Answer 48

Maturity Stage

Question 49

Market modifying Product modifying Marketing mix modifying

Answer 49

Maturity Stage Modifying Strategies

Question 50

Maintain the product Harvest the product Drop the product

Answer 50

Decline Stage

Question 51

Public policy and regulations regarding developing and dropping products, patents, quality, and safety

Answer 51

Product Decisions and Social Responsibility