week 10-11 New Product Development

Question 1

Draw NPD Process (ILLUSTRATION)

Answer 1

(9) box with arrow

Question 1

when a promising concept has
been developed and tested, it is
time to design an initial
marketing strategy for the new
product.

Answer 1

MARKETING STRATEGY DEVELOPMENT

Question 2

A description of the target market, the planned value proposition, and the sales, market share and profit goals for the first few years (3 years)

Answer 2

MARKETING STRATEGY STATEMENT

Question 3

An outline of the product’s planned
price, distribution and marketing
budget for the first year

Answer 3

MARKETING STRATEGY STATEMENT

Question 4

The planned long-term sales,
profit goals and the marketing mix
strategy

Answer 4

MARKETING STRATEGY STATEMENT

Question 5

It’s essential to outline the product’s features and benefits while emphasizing significant
changes made from the approval stage to concept testing.

Answer 5

Product

Question 6

This involves describing the
product thoroughly and explaining any alterations implemented based on feedback received during the approval process.

Answer 6

Product

Question 7

Subsequently, insights gathered from concept testing are discussed, guiding the adoption of necessary adjustments for finalization.

Answer 7

Product

Question 8

This iterative process ensures that
the product aligns closely with market needs and preferences, enhancing its potential for
success upon launch.

Answer 8

Product

Question 9

______ is the amount that consumers will be willing to pay for a product.

Answer 9

Price

Question 10

Marketers must link the price to the product’s real and perceived value, while also considering supply
costs, seasonal discounts, competitors’ prices, and retail markup.

Answer 10

Price

Question 11

__________________ focuses
on the internal factors of a
business, primarily the
costs associated with producing
or acquiring the product.

Answer 11

Cost-based pricing

Question 12

unit cost + mark-up price

equals=

Answer 12

Selling Price

Question 13

Cost-based pricing

*As a rule of thumb, 5% is a ___ margin, 10% is a ______ margin, and 20% is a _____ margin.

Answer 13

• low
• healthy
• high

Question 14

are expenses that do not vary with the level of production or sales within a certain range. These costs remain constant regardless of changes in output or sales revenue

Answer 14

Fixed cost

Question 15

are expenses that vary in direct proportion to the level of production or sales. Unlike fixed costs, which remain constant, variable costs fluctuate based on changes in production volumes or sales revenue.

Answer 15

variable cost

Question 16

Rent and Lease

Answer 16

fixed cost

Question 17

Payments

Answer 17

FIXED COST

Question 18

Salaries

Answer 18

FIXED COST

Question 19

wages

Answer 19

FIXED COST

Question 20

Insurance

Answer 20

FIXED COST

Question 21

Premiums

Answer 21

FIXED COST

Question 22

Loan Repayments

Answer 22

FIXED COST

Question 23

Raw Materials

Answer 23

VARIABLE COST

Question 24

Direct Labor

Answer 24

VARIABLE COST

Question 25

Utilities

Answer 25

VARIABLE COST

Question 26

Packaging

Answer 26

VARIABLE COST

Question 27

Materials

Answer 27

VARIABLE COST

Question 28

Sales

Answer 28

VARIABLE COST

Question 29

Commissions

Answer 29

VARIABLE COST

Question 30

1. Understand Customer Value: Market research reveals that customers value the unique features of your product and are willing to pay a premium for them.

Answer 30

Value-based pricing

Question 31

2. Determine Willingness to Pay: After conducting surveys and analyzing competitors' pricing, you find that customers are willing to pay up to Php30 per unit for your product.

Answer 31

Value-based pricing

Question 32

3. Set Pricing Strategy: Based on customers' willingness to pay and the perceived value of your product, you decide to set the selling price at Php30 per unit.

Answer 32

Value-based pricing

Question 33

focuses on the perceived value of the product or service to the customer.

Answer 33

Value-based pricing

Question 34

is the consideration of where the product should be available—in brick-and-mortar stores and online—and how it will be displayed.

Answer 34

place

Question 35

The goal of promotion is to communicate to consumers that they need this product and that it is priced appropriately.

Answer 35

PROMOTION

Question 36

encompasses advertising, public relations, and the overall media strategy for introducing your product.

Answer 36

PROMOTION